Customer loyalty. Do companies really deserve your custom?

Question

My home and contents insurance is due for renewal with Barclay's Bank. I have been insured with them now for 3 years consecutively as their quotes were far the cheapest. There is now an increase of nearly £20 per year plus £1.50 per month for direct debit which I phoned up and questioned.

They advertise on TV stating that if you can find insurance cheaper elsewhere, they will match it and give you £50 cashback, guaranteed.

When I asked them about this, they commented and stated that it was for new cutomers only. I continued and asked about the loyalty of existing customers, but were not interested.

I have changed my insurance to another company merely on principal at got it £25 cheaper anyway.

Do you think that these big multi bilion pound companies deal a slap in the face when it comes to customer loyalty?

Do they deserve YOUR custom?

Answer 1

Companies have to offer incentives to attract new customers, that's a fact. However, I agree that it is very annoying that you, as a loyal customer cannot buy a product like insurance for the the same price as a new customer. The Oliy way to beat the system is to do as you have done and become a 'new customer' at renewal every year, even if this sometimes means staying with same company. They cannot stop you cancelling one policy and setting up a new one at a 'new customer price'. Insurance companies make very little, if any money on 'new business'. The real money is made at renewal or by 'up-selling' other products. There are thousands upon thousands of people who remain loyal to their insurance company, just renewing without checking for alternatives. This is where the money is made.

Answer 2

not really

Answer 3

As Martin Lewis always says no company shows loyalty to exhisting customers. I had car insurance with Churchill for years then i decided to change to a better quote with someone else. Churchill then contacted me and advised me to instead of renewing with them each year go back each time to them as a new customer and recieve a 10% discount as well as other benefits as a "new" customer. I believe this is the case with most companies not only dealing with insurance.

Answer 4

Interesting - as a broker I know that it is far easier to keep existing customers (and sell addtional products to them) rather than try and go and get additional customers.

This is why all the direct insurers offer absolutely ridiculous offers to try and get customers to switch. Not only Barclays but also Direct Line, Churchill, More Th>n offer things like £60 cashback, guarantee save £30 on premium. (Interestingly ONLY Hiscox as far as I am aware advertise promising better cover yet a policy providing better cover will pay out far more in a claim than any premium savings that might be made)

I note you saved money - you say nothing about cover/ terms/ conditions or exclusions or claims service - by any chance was it a 'special promotion for new customers? - you see my point.

Answer 5

Thieves the lot of them. They pretend to be doing you such a favour but are only interested in emptying your pockets for all they can find, & for what they can't find they tempt you into debt & charge  exorbitant interest rates.

Answer 6

if the company is called KING OF SWORDS then no they RIP ! you off steer clear .

Answer 7

Nope. I'm a rate-tart and I shop around for everything. I must have saved thousands. They are not there to help you, they want your money.

Answer 8

have been trying to get a small amount of money from a computer company who sells computer parts and accessories. It has taken them three years to decide to refund my monies got a letter asking for my current address etc so they could send me the monies. well it is almost a month and I still haven't gotten the check so I called about got a snippy young smart azz who really didn't want to take time to help me but when you are waiting for the company rep to come on the line their little intro says that they are really glad to hear from you and help you with your problem I think that company should change their attitude to match the intro I will never ever order from them again and tell everyone I know no0t to deal with them

Answer 9

See moneysavingexpert.com for the answer to this question. Companies promise the earth to get you and deliver very little once they have you.