Much ink is spilled and hot air blown in attempts to tell the story of the value of insurance, most especially in the face of highly publicized coverage disputes and regulatory debates.
When insurance policyholders are happy customers, however, they are notably less likely to shop around for new carriers, according to customer-retention research compiled in 2025 by the video-commerce platform Firework: “The insurance industry boasts an 83% retention rate, as customers tend to remain loyal to trusted providers over time.”
Why should customer-retention strategy be an integral part of business operations? The Firework research indicates that work on customer retention produces exponential results in terms of profit margins and cost savings. Consider that:
- Sixty-five percent (65%) of a company's revenue comes from existing customers;
- Existing customers spend 67% more than new ones; and
- Acquiring new customers costs five times more than retaining existing ones.
What’s more: Three out of five policyholders shop around for new carriers at least once every three years, according to the market research company Gitnux.
Another recent report about customer loyalty from The Craftsman Agency, a brand consultancy, argues that while “product quality and price get customers in the door,” those customers stay when they feel a sense of brand loyalty. The slideshow above illustrates seven steps to building customer loyalty, as compiled by The Craftsman Agency.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.