About 1ST CENTRAL
1ST CENTRAL is a competitive car insurance provider, offering the best possible prices, with the minimum of jargon.
Success in the insurance industry is built on repeat business, ensuring customers keep coming back to renew their policies – but with insurance generally being a begrudging purchase, it can be difficult to keep customers engaged and loyal. Drivers are asked to renew their insurance once a year – a perfect time for them to jump ship and go elsewhere.
Despite positive customer feedback, 1ST CENTRAL was finding retaining customers at renewal time a particular challenge, and needed a way to both keep customers on board, and attract new ones to replace those moving on.
A loyalty scheme had been considered in the past – and perhaps now was the time to implement one. But what does it look like, how do you get customers to use it, and how do you keep offers fresh and new? More importantly, with a business case to be made to the board, how much does it cost – and what are the returns?
Working With Entice
We had already built up a relationship with 1ST CENTRAL, and pitched them a loyalty scheme that matched their “simply driven” ethos. We agreed a concept at a cost that satisfied 1ST CENTRAL’s board, and underwent trials to minimise risk to the company while also proving the scheme’s worth.
1ST CENTRAL was particularly drawn to our customer service offering, with account management and comms that could provide the right level of service, commitment, engagement and support to its customers – but a big part of their decision was down to what Gary Lucas at 1ST CENTRAL described as “the professionalism of Entice and the supporting paperwork and commitment – plus their knowledge of the industry. Relationship management was so key. So was the look and feel… Entice just looked better!”
Our relationship with 1ST CENTRAL has been a close partnership at every step of the way. As Gary says: “We work together to deliver a solution – they have a skillset and experience that helps us to help our customers.”
What We Did
At renewal time, 1ST CENTRAL would inform customers of the renewal price, providing obvious opportunities to opt out if they did not want to proceed.
But the primary aim was to develop and implement a customer reward scheme, 1ST REWARDS, that provides additional benefits and incentives to customers, offering them something extra in return for their loyalty.
The reward scheme offers, among other incentives, vouchers and discounts on the weekly shop at a range of supermarkets, up to 10% off holidays with Thomas Cook, 40% off cinema tickets with Cineperks, food and drink vouchers, and discounts at B&Q, M&S and PC World.
Initial feedback to the scheme was very positive, with customers responding well – and even those customers that didn’t actively use the loyalty program said they were enthused that they had the opportunity there if they wanted it.
The program gives insurance customers more – car insurance is something you hope you never have to use, so providing customers with something for their money even when they don’t claim is a massive benefit.
The trial period was very successful, compared to the control group, the customers given access to the loyalty program in the trial saw an increase in retention of 1.4%, exceeding our target of 1%.
This may not sound like a large amount – but across its entire user base of hundreds of thousands of customers, such an increase can have a significant impact on increasing revenue.
This increase in revenue effectively paid for the program, creating a cost-neutral solution that also greatly strengthens customer satisfaction and 1ST CENTRAL’s marketing proposition as a brand.
Since the full roll out of the rewards platform, 1ST CENTRAL surveys of new and renewal customers have found that having access to the loyalty platform is a big incentive in encouraging people to sign up or renew – even if they haven’t actually used it yet.
Net Promoter Score (NPS) analysis has also been used to measure the benefits of the reward system. An NPS scores an organisation’s customers on how likely they are to buy more or recommend a service to others. A score of seven or eight indicates customers are neutral, with anything below indicating detractors, and anything above indicating promoters.
Typically, insurance companies score an average of 7.75 – since implementing the loyalty program, 1ST CENTRAL’s ratings have risen to an average of 25, with higher ratings among customers who are aware of and actively use the program.
“Entice as an organisation have been very good. They got on board with our whole brand ethos and approach and I’m impressed with how quickly they respond to feedback and their turnaround time, especially our customer communications. We really enjoy working with them.”
– Gary Lucas, Head of Customer Experience, 1ST CENTRAL