It is interesting to see the theme of client loyalty being raised in Australia, and picked up here in Goodreturns. Susan Edmunds reports:
IOOF’s Renato Mota said clients would become less loyal...
“With the average person spending 1.72 hours each day on social media, likes and social networks will become the new advertising," he said.
We have identified the fall in client loyalty as a key long-term force driving change in the life insurance industry. These are the main drivers of the trend:
- Greater wealth - makes people choosier, and fuels the pressure to 'trade up' and buy 'premium versions' of products
- Longer lives - if you live longer you have more changes in life, and changes in family, which means your insurance changes too.
- Consumerism - newspapers, consumer groups, advocates, regulators - all tell consumers to shop around
- Technology - your smartphone, car, TV, and laptop get replaced all the time to get the latest features - you can forgive consumers for thinking that other things should work like that too.
- Online search - makes it so much easier to look around and see what else is out there.
- Mass customisation - makes consumers think that they should have something designed 'just for you'