Evaluating the Customer Retention and Satisfaction in the Albanian Auto Insurance

Abstract

Customers are the reason why businesses exist, prosper, and expand. Customer acquisition is the main goal for sales teams because more clients mean more money. The pandemic constrained people to reconsider how they utilize their time and what companies they do business with, including their insurance options. The insurance industry has the highest customer acquisition costs of any industry. Customer acquisition in insurance costs are nine times higher than customer retention, so ‘’Happy clients” is no longer a nice to have, but a must in insurance industry. In order to be profitable in insurance, the industry should focus in the customer experience service by improving important indicators like loyalty and retention. In this study, I seek to understand the factors that may cause an insurance services firm to lose some of its customers who have auto insurance. The findings of this empirical research utilized NPS for measuring customer loyalty in the auto insurance market in Albania. To be successful in both customer acquisition and customer retention, Albanian insurance companies must focus in the factors identified in this research in order to influence customer loyalty and adjust their marketing strategies accordingly. The importance of the study consists on the lack of any similar research that looks at customer satisfaction, retention, and reasons for customer loss in the Albanian insurance sector. These variables have not been studied together previously. As a result, the findings of this study may serve as a starting point for other studies in the Albanian insurance sector.