It’s a sad truth that consumers face a “loyalty penalty” across a number of essential markets, which – as reported by Citizens Advice – could mean that many are overpaying by as much as £987 for energy, broadband and financial services.
With the Competitions and Market Authority (CMA) looking into the home insurance market as well as ComparetheMarket for “breaking competition law” at the end of 2018, your business critical focus needs to be on reinforcing your value to your customers.
Loyal customers lose out on £4.1 billion a year
In today’s competitive marketplace, brand loyalty should be rewarded, not penalised.
Yet Citizens Advice claim that essential service providers have been “undermining consumer choice by using processes which take advantage of people’s behavioural biases”, leaving many on “poor value deals” and affecting the most vulnerable the hardest.
Being penalised for customer loyalty, otherwise referred to in the industry as “price walking”, sees consumers paying more and more for every year that they remain with the same insurance provider – making their policy more profitable at their own expense.
Now lack trust in businesses
Unaware of the 'loyalty penalty'