Top 5 Ways to Increase Insurance Customer Loyalty During the Holidays

If you’ve done any analysis on your business development efforts, you know that acquiring a new customer can cost anywhere from five to seven times more than retaining an existing one. Conversely, Bain & Company points out that by increasing retention rates by as little as 5% can boost profits by as much as 25% to 95%.¹ These statistics highlight the immense value of focusing on customer loyalty, especially during the holiday season when sentimental emotions abound, to do lists are long, and customer expectations are high.

For insurance agencies, policyholders’ loyalty is often driven by trust, personalized service, and consistent communications. The holiday season brings with it the opportunity to implement strategies that not only meet but exceed customer expectations. Here are five actionable ways to strengthen customer loyalty and reinforce why your clients are satisfied.

1. Holiday Customer Appreciation

The holiday season is the perfect time to show your customers how much you appreciate them, their business, and the trust they have in your insurance agency. Consider sending personalized holiday cards or small gifts to your clients. This gesture not only enhances customer satisfaction and loyalty but also creates a personal connection with your clients. Hosting a holiday-themed event, either virtually or in-person, can foster a sense of community and strengthen relationships. Expressing your appreciation during the holiday season increases communications (which customers appreciate) and builds the relationship between your customers and your brand. Staying connected encourages your clients to stay loyal to your agency and feel valued during the festive season as the year comes to a close. Chances are you’re already doing most of these, so be encouraged that the juice is worth the squeeze.

2. Activate an Online Review Program

Online reviews are a powerful tool for building trust and attracting new customers. Nine out of 10 consumers (a percentage that is growing) read online reviews to guide their purchase decisions.²
When your customers vocalize or post their satisfaction, it’s not just words, it’s a reaffirmation of their trust in your agency. This self-affirming declaration strengthens their own resolve to continue partnering with your agency to protect their families, finances and futures. Online reviews declare and affirm their loyalty and trust in your agency. Trust is the cornerstone of any successful relationship, and online reviews is the social proof of your clients trust and loyalty – which attracts new customers.  Since 92% of people (a percentage that is growing) trust friendly recommendations before making purchase decisions², having a high volume of online reviews from satisfied customers is not too different than having a 24/7 virtual salesperson.

When you’ve written a new policy or handled a claim with confidence, encourage your satisfied clients to leave reviews on platforms like Google, Yelp, and social media. You may be able to incentivize reviews by offering small discounts or entry into a holiday raffle, but be sure to follow applicable laws. This approach increases your agency’s online visibility and credibility, provides valuable feedback for continuous improvement, and helps attract new clients through positive testimonials. Sending out email campaigns with direct links to review sites and highlighting reviews on your social media channels can grow the number of 5-star reviews your agency earns.

3. Conduct Year-End Policy Reviews

Year-end is an ideal time to review your clients’ policies to help them ensure they have the coverage they need.  It’s a natural time of reflection and planning, and your customers appreciate the value you bring into their lives. Reach out to your customers to schedule a review meeting, where you can discuss any changes in their circumstances and suggest possible adjustments to their policies. This demonstrates your commitment to personalized service and helps identify opportunities for upselling or cross-selling additional coverage to make sure your customers understand and have the coverage they desire. Setting up automated reminders for policy reviews and sharing educational content on the importance of these reviews can make this process smoother and more effective.

4. Utilize Personalized Communication

Tailoring your communication to meet the individual needs and preferences of your clients can significantly enhance the relevance and effectiveness of your interactions with clients.  Use data-driven insights to send personalized messages, policy updates, and reminders that are relevant to each customer. Personalized communication builds stronger relationships by showing clients you understand their unique needs, increases engagement and satisfaction through relevant and timely communication, and enhances trust and loyalty by demonstrating a commitment to personalized service. Utilizing segmented email lists for targeted messages and sending personalized holiday greetings are effective ways to implement this loyalty-building strategy.

What event is more personal than your birthday? If you haven’t set up an automated Birthday Greeting for all of your customers, consider the impact. Your personalized birthday greeting is a caring gesture to bring a smile to your customers’ faces. It’s simple and effective. Additionally, according to the 2023 American Community Survey conducted by US Census Bureau, around 28% of American households³ are considered one-person households. Meaning, over a quarter (27.6%) and approaching 1 in 3 Americans live along. And the share of people living alone is increasing over time. Birthday greetings build an emotional connection, grows favorability for your brand and positions your agency as one filled with insurance experts who care.  Regular, personalized and purposeful communication contributes to improved customer loyalty.

5. Implementing a Customer Feedback Loop

Actively seeking and acting on customer feedback shows clients that their opinions matter, while identifying for improvement. If you don’t already, consider using surveys, feedback forms, and follow-up calls to gather insights and make necessary adjustments to your services. This improves customer satisfaction by addressing their concerns and suggestions, demonstrates a commitment to continuous improvement and customer-centric service, and helps identify trends and areas for innovation, keeping your agency competitive. Distributing customer satisfaction surveys and making follow-up calls to gather feedback are practical tactics to improve customer service, stay connected with your customers, and positively impact customer loyalty.

So, there’s the list! Remember, you clients want to hear from you more than just through a renewal letter. They count on your insurance expertise. By implementing these five strategies—holiday customer appreciation, activating an online review program, conducting year-end policy reviews, personalized communication, and implementing a customer feedback loop—you can significantly enhance customer loyalty during the holiday season. Not only will these practices help retain your high-value clients, but having a strong and robust loyalty program will also position your agency as a trusted and reliable insurance expert and partner.