The Power of Engagement and the Benefits of Membership
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In our connected age, companies recognize the importance of engaging with their customers. An engaged customer will buy more products, provide positive reviews, and give that coveted word-of-mouth recommendation. Companies have successfully used that strategy to see significant growth without spending a lot of money on marketing or advertising.
But the insurance industry has struggled to build engagement with its customers. That is also true among financial advisors, who can apply the same tactics to grow their business.
The irony is that several of the largest insurers in the United States are mutuals, meaning that most policyholders are considered "members" of that carrier. However, judging by the metrics, the vast majority of insurers struggle to build any engagement with their members. They might contact them once a year to provide an update on their policy, maybe send a birthday or Christmas card.
But that doesn't create an engaged, loyal customer.
Most insurers don’t get glowing online reviews from their customers, don't generate organic referrals and usually have anemically low net-promoter scores (NPSs). Word-of-mouth referrals are non-existent. All of that makes things more challenging for an insurance or financial advisor trying to recommend a carrier.