Unique value propositions drive loyalty in motor and property insurance

October 17, 2014 - Brisbane-based consulting firm Engaged Marketing have released the secrets of consumer loyalty and recommendation from their latest round of independent benchmarking studies of the most popular Australian property and motor insurers. The key is a strong value proposition that is communicated and then delivered to the customers in an easy claims experience.

For the fifth year running Apia has got it right, leading the property insurance industry with a likelihood to recommend score of 17%, compared to the industry average -18%. Apia has also come out ahead of the motor insurance industry, scoring 10% against an average of -7%.

What is driving Apia's success? Christopher Roberts, the Managing Director of Engaged Marketing points to a powerful value proposition that seeps into every customer experience. In Apia's instance it is the fact that they focus on the over-50s segment.

Naturally, how a claim is handled is the embodiment of the customer experience with an insurer.

"Engaged Marketing has drawn insights from over 3469 and 3817 Australian consumers across the property and motor insurance industries respectively– not only do they want an outcome from their claims request, but they want it to be easy," Mr Roberts explains.

As a consumer, a claims process that is easy to deal with will spark your likelihood to recommend.

It is no surprise then, that Australian customers believe that Apia has one of the best claims processes in both the property and motor insurance industries. The popular insurance brands assessed in the study include:

AAMI

Allianz

Apia

Budget Direct

CGU

GIO

NRMA

RACQ

RACV

QBE

Suncorp

YOUI

The results of the study also revealed that of all the marketing channels, word of mouth was selected by 46.8% of participants as wielding the most influence when it came to purchase decisions. Motor and property insurers can benefit by focussing their efforts on on campaigns, propositions and experiences which are conducive to word of mouth.

Net Promoter Score was the key metric utilised in the Consumer Loyalty and Recommendation Studies. Engaged Marketing is a pioneer on the Net Promoter Score front – a metric used by many of the world's leading and most recognisable organisations to determine how likely their customers are to recommend them. Engaged Marketing has supplemented this world-renowned metric with their own insight-driven customer research methods.

(ENDS)

Engaged Marketing is an insight driven business consultancy focused on helping businesses grow by developing fresh customer, marketing, and organisational strategies. Engaged Marketing is an official Net Promoter® Loyalty Partner. The 2014/15 Consumer Recommendation & Loyalty Studies across Property and Motor Insurance are now available from Engaged Marketing.

Net Promoter, NPS and Net Promoter Score are registered trademarks of Satmetrix Systems Inc., Bain & Company and Fred Reichheld.