Reduced Lapse Rates
Effective Policyholder Marketing can do much more than build profitable sales.
The programs that we build at LSI are designed to remind customers of the value of the insurance they already have and to reinforce the benefits your company offers them.
And we’ve seen consistently over the years that this reduces lapse rates on the existing policies they hold – a very significant additional benefit of working with LSI.
Our Policyholder Marketing programs are designed to “look and feel” like service-based communications rather than sales offers.
That’s why we often build the programs using a conjoint marketing approach, such as Statement Marketing.
In this way, the offers we make always reinforce the value of the policies the customers already hold. And that means those customers are more likely to retain those existing policies, as a direct result of receiving the communication.
In the 12 months following a Policyholder Marketing program, lapse rates on existing policies held have been seen to fall by between 12% and 30%.
And this reduction applies to all customers included – regardless of whether they take up the upgrade or cross-sell offer made in the program.
What’s more, those customers who do take up the additional offer are the least likely of all to lapse their existing policies.
In general, the higher the number of insurance purchases any customer makes with your company, the more loyal that customer will be. And Policyholder Marketing programs are a proven way to maximize customer loyalty in this way.
Reducing lapse rates in this way is highly profitable for the insurance companies we work with. But our Policyholder Marketing programs also deliver value through Profitable New Sales and happier, more loyal agents and intermediaries
Find out more about how you can reduce lapse rates across your in-force insurance customer portfolio.
Call us at LSI on +1 302-339-5200 or email twartenberg@lsigroup.com