Over the last two years 74% of people have switched at least one insurance service or product, which is a problem for car insurance companies since people no longer simply choose a company and stick to it, they now make an effort to get the best deal.
In the research completed by WhiteConcierge, the leading B2B lifestyle management company, over 33% of people claimed to have switched motor insurance in the last two years making it the most affected business sector.
Oxford Brookes University Professor Merlin Stone stated that with these results in mind organizations now have to fight harder to keep customers, because consumers are becoming more discerning and demanding. He also cited price comparison websites as a cause since it is now easier than ever for people to figure out where the best deal on auto insurance really lies.
Managing director of WhiteConcierge, stated that the current economic conditions have forced companies to focus on customer retention instead of trying to get new customers. He also stated that while price is an important factor, the findings illustrate that customer service is playing a large role.
Currently, it is estimated that if customer loyalty increases by just one percent then a business experiences a 10% cost reduction, which means that auto insurance companies need to start thinking about what their customers really want if they want to keep their auto premiums low, a pertinent issue given the fact that experts predict that insurance premiums will continue to increase.