Challenge
Despite strong sales, customer retention was a challenge for a large supplemental insurance client. With no customer communications program, agents typically did not communicate with new customers beyond the point of sale. As a result, the company saw high lapse rates. They needed to improve their first-year persistency scores — the percentage of newly sold policies that remained active — by reinforcing the purchase decision and keeping new customers engaged.
Solution
Taylor developed a communications program that reached each new customer immediately after the purchase and continued with additional contacts throughout the first year.
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The primary goal of the program was to reinforce the new customer’s purchase decision, provide ongoing reminders of the product’s value and defuse potential buyer’s remorse.
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Communications included personalized postcards, letter packages with keepsake items, a quarterly newsletter and a holiday greeting card as well as referral requests and a handy customer care magnet.
Results
The multi-touch communications campaign created and managed by Taylor dramatically outperformed expectations and measurably decreased lapse rates.
