Services / Loyalty consulting / Other industries
Loyalty in other industries: customer loyalty in contractual relationships
Customer loyalty is not limited to retail, the automotive industry and media. Especially in industries with contracts and tariffs – energy supply, insurance, financial services and telecommunications – loyalty directly determines revenue and customer value.
Among other things, our team brings project experience from energy supply, insurance and financial services. We transfer proven approaches from the loyalty ecosystem to each specific situation – from churn prevention and cross-selling to referral.
What makes loyalty in contract-based industries special
In contract-based industries, customers have few but decisive touchpoints: signing up, billing, tariff changes, claims or contract renewal. In between, there is often hardly any interaction – and that is exactly where the risk of churn arises.
Comparison portals make providers interchangeable and shift the focus to price. Customer loyalty must therefore create added value beyond the tariff and address the right customers at the right time.
At the same time, a great deal of data on contracts, usage and service is available. Used properly, it allows churn risks to be identified early and suitable offers to be placed in a targeted way.
Industries at a glance
Energy supply
Electricity and gas contracts are frequently switched via comparison portals. Levers are retention before the contract ends, added value around the energy transition, mobility and smart home, and referrals.
Insurance
Contact often only occurs with premium invoices or claims. Levers are cross-selling across several lines of business, added-value programs and customers recruiting customers.
Financial services
Banks and payment providers compete to be the primary bank relationship. Levers are benefit programs, card usage, products per customer and the activation of digital channels.
Telecommunications
Fixed-term contracts, renewals and tariff changes shape the customer relationship. Levers are targeted renewal offers, added value for existing customers and referrals.
Levers for customer loyalty in contract-based industries
Churn prevention
Recognizing early warning signals from contract, usage and service data and taking targeted countermeasures – before the contract ends rather than after cancellation.
Referral: customers recruit customers
Particularly effective in contract-based industries: recommendations are credible, and referred customers often stay longer.
Cross-selling
More products or lines of business per customer increase customer value and reduce the willingness to switch.
Added value beyond the tariff
Benefits, services and partner offers that put the pure price comparison into perspective.
Valuing existing customers
Benefits for loyal customers instead of new-customer discounts only – a lack of appreciation is a common trigger for switching.
Knowing and reaching customers
Registration in the customer portal or app and opt-ins create the basis for targeted communication.
KPIs that matter
- Cancellation rate and retention rate before contract end
- Products, contracts or lines of business per customer
- Referral rate: share of new customers from recommendations
- Customer lifetime value by customer segment
- Identification and opt-in rate: how many customers are known and may be addressed in a targeted way
- Use of customer portal and app
More industries and topics
Loyalty consulting at a glance
Services, program or ecosystem, approach and program types at a glance.
Learn more →Loyalty in grocery retail
High purchase frequency, tight margins: how personalized offers and basket data make customer loyalty in grocery retail pay off.
Learn more →Loyalty for DIY & home improvement
Professionals and DIYers, projects and seasons: how DIY and home improvement retailers retain both customer groups – drawing on our work with OBI.
Learn more →Loyalty in the automotive industry
Long purchase cycles, service and community: how a loyalty ecosystem keeps customers until their next vehicle – as we developed it for CUPRA.
Learn more →Loyalty in fashion retail
From entry price through premium to luxury: customer loyalty beyond discounts, with more full-price sales and fewer returns.
Learn more →Loyalty for media & publishing
From subscription to a comprehensive customer relationship: reducing cancellations, readers recruiting readers and cross-selling conferences, travel and events.
Learn more →Part of an integrated approach
Loyalty only works in combination with a clear customer strategy, a managed customer lifecycle and an organization that supports customer loyalty in everyday operations. That is why we combine these topics in our projects.
FAQ
Frequently asked questions
Does customer loyalty also work in industries with fixed-term contracts?
Yes. That is exactly where loyalty directly determines revenue. Churn prevention before the contract ends, added value beyond the tariff and referrals are particularly effective.
Why is referral so effective in contract-based industries?
Recommendations from one’s own circle are credible, and referred customers often show higher loyalty. Clear incentives and simple processes are the prerequisite.
How do you prevent existing customers from feeling disadvantaged?
By not reserving benefits for new customers only. A loyalty ecosystem makes loyalty visible – with added value, services or better conditions.
Does ProNexum also work in industries not listed here?
Yes. The principles of a loyalty ecosystem can be applied to many business models. Feel free to get in touch.
Do you want to strengthen customer loyalty in your industry?
We would be happy to discuss your starting point, goals and a sensible first step with you.