The latest Financial Services Tracker (www.mwlinks.co.uk/ MediaSpend) highlights the importance of brand power in the face of lower consumer spending.
Over the past few years, more and more low-cost brands have entered the insurance market and in such a price sensitive space have easily taken market share.
However, as your article referenced, the current climate is now driving people to choose brands they trust. The challenge is now for those brands to retain these customers for the long-term.
Trust is certainly one element of customer loyalty, but generating data and insight into customers is key in retaining them. This way the insurer has far more information on the customer – so is able to offer a better premium – and the customer knows they are insured with a company that recognises and values them.
It will be interesting to see whether loyalty measures have an influence on the next Financial Services Tracker.
Junction (the affinity arm of The BGL Group)