Should You Focus on Brand Loyalty?
When you focus on brand loyalty and try to sway your insurance customers to come back to you over and over again, are you doing the right thing? Buyer retention is a huge focus of marketing in general, and that includes insurance marketing. It makes sense to ensure that your clients will return to you instead of having to find new clients all of the time. However, for the generations to come, brand loyalty is not necessarily the top selling point.
Brand Loyalty Looks Different
Today, your customers don't need to walk down to their local insurance agency to find their insurance. They can purchase from companies that are far away, and they have their choice of products. People move a lot as well, and they're also less likely to trust businesses in general because many younger generations feel uneasy about traditional advertising methods. Is brand loyalty as we know it dead?
What Does Brand Loyalty Look Like Today?
According to Forbes , brand loyalty is still very much alive: "Across the board, 77 percent of consumers have the tendency to return to their favorite brands over and over again." However, this is not necessarily because they have a deep connection to or nostalgia for a brand. In part, it's also because those brands give them the best experience. If that experience changes, those customers will go elsewhere.
Do Brand Loyalty and Generation Z Mix?
Then there's Generation Z: this up and coming generation is the one after the Millennials, and it's where you need to start looking right now. They don't particularly like traditional advertising, nor are they inherently loyal to brands just because, but they have other qualities that could allow you to create a strong, ongoing relationship with them.
They love influencers and listen to them. By working with others in your community or around the world who can promote your insurance brand consistently, you'll achieve some brand loyalty with this younger generation.
They want to buy things from real companies. They're not easily swayed by marketing. However, if you can put forward your real stories of work in the community, then they will get much more excited about that. An ongoing fascination with your stories will lead to repeat clients.
They don't love traditional loyalty programs. According to Forbes , "So many brands build loyalty programs with the hope of giving consumers a reason to come back," and while this may work for Millennials, Generation Z is a different group. You'll need to court their loyalty, again and again, reminding them of why you are a business that provides what they need, and doing this in a way that seems real and connects to their social networks.
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