Martin Lewis over at moneysavingexpert.com offers this excellent advice when it comes to car insurance:
Never auto-renew. Loyalty is expensive
Nothing better illustrates car insurers preying on loyal customers than Sarah Cooper’s tweet. “My car insurance renewal is £1,200. New policy with same company is £690. How do they justify this?” They don’t. They just do it.
I’ve had my car insurance renewal notice from Allianz today. Comparing it with last year’s premium, they want an additional 51%! Nothing has changed – except that I’ve had another claim free year, bringing my total to 10. A quick check of a couple of price comparison websites showed that for the same cover the cheapest quotation was around £15 less than I’d paid this year, with 10s of quotations clustered around £10-£20 more expensive than last year. There were three or four (out of a hundred or so) that were more expensive than the Allianz renewal, but they were offering free unicorns as well. (OK, I’m fibbing about the unicorns).
I rang Allianz up. I was calm. I politely explained the situation. I was reasonable and persuasive. I asked that they considered renewing my policy at around the same price as last year, or perhaps on or around the median quotation I’d found for this year.
Their call handler was lovely, but her response was:
We don’t price match sir. I could re-quote you, but the result would be the same.
They wouldn’t budge by even a penny. I hate being taken for a fool and her excuses became less and less convincing as I suggested that they were guilty of sharp practice. I’ve cancelled my policy with them and I’ll do everything I possibly can do to make sure that I don’t use Allianz again any time soon.
So if customer loyalty is as worthless as it appears to be from this example, I wonder why so many software companies are marketing customer experience management and customer loyalty solutions?
Perhaps they’d be better off trying to sell customer disloyalty solutions instead.