Retaining customers is one of our top priorities

Your new motor customer has just signed on for dealership insurance. What happens next? As we show below, the Allianz Automotive retention program kicks in to help retain customers within the dealership/insurance ecosystem.

Last month we examined 'insurance on-ramps', those optimal moments in the buying journey when customers can be introduced to the need for taking out insurance for their vehicle.

While that article’s focus was onboarding new insurance customers, this month, we look at the steps we’re taking to retain existing customers.

Introducing customers to dealership insurance will remain a key stage in the customer journey. However, the reality of vehicle sales slowing over the last few years has led to a decline in the number of new dealership insurance customers. This has promoted vehicle insurers, such as Allianz, to consider ways to retain existing customers.

In response, we’ve made customer retention one of our top priorities. We’ve implemented an always-on customer lifecycle program using effective eDM communications direct to the customer.

Our Automotive Retention Strategy, as we call it, was devised and launched in 2020 during the height of COVID-related disruptions to the sector. At its core, the strategy involves sending direct digital communications to existing customers through their policy lifecycle. It's already proven successful, with positive customer responses to notifications about the benefits of their policy inclusions and the reminder that their insurance policy is soon to expire.

What does the strategy look like?

Our Automotive division looked at the Allianz Direct division’s direct-to-customer program, thinking about how an energised retention program could work.

We then formulated a customer engagement framework that’s designed to communicate with customers at critical touchpoints. We also tailored the messaging to suit the customer.

Existing customers will already have received an onboarding email. The strategy involves contacting them towards the end of their policy period, with the following communications:

First stage, prior to renewal

We send all customers with a policy at the renewal stage an email outlining the benefits of their insurance. This reminds customers to renew their policy.

Second stage, prior to renewal

We send customers a renewal reminder, which includes options for the customer to adjust their policy (eg amending their excess, adding windscreen cover, paying monthly, etc).

Thank you

In addition to confirming the customer’s policy renewal, this email also reinforces the product benefits, and the process for making a claim, and thanks the customer for renewing their policy.

The branding on our communications will vary depending on how the customer has purchased their policy and, if relevant, some communications can be white-labelled.

The benefits of the strategy to dealerships

The retention strategy has proven highly successful, with figures showing an improved uplift in policy renewals as a direct result.

Strong renewal figures aside, the strategy plays an important role in keeping customers within the insurance/dealership ecosystem. We’re reminding customers about their relationship with their dealer. They feel engaged with the brand of vehicle they've purchased, and we give customers a subtle prompt to check in with their dealership for their vehicle’s servicing needs.

We look forward to bringing you more news soon about the continued success of the strategy and the positive impact it’s having on customer engagement with dealerships.

Disclaimer

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.

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