My latest report, How PURE Insurance Built A Customer-Obsessed Business, is a case study of a company using its customer-obsessed business model to stand out in the insurance industry. Since its start in 2006, PURE has grown more than 40% each year, and has one of the highest net promoter scores in any industry.
Entering the crowded, competitive insurance industry was no easy task. PURE knew it would need to stand out. That’s why the founders decided to go with a member-owned business model (called a Reciprocal Exchange) that would help differentiate the insurer from other insurance companies owned by shareholders. For PURE, owners as members means alignment between business and customer goals. The company deepens and reinforces this commitment in several ways:
Targets A Select Group Of Customers. In addition to creating a member-owned business model, the founders of PURE also focused on a market niche with a distinct and attractive profile. The insurer targets responsible, high-net-worth customers. For its homeowners insurance policies, for example, the homes of potential policyholders must have a reconstruction cost of at least $1 million. The company selected this segment because high-net-worth customers represented a favorable risk profile. This, coupled with the fact that the niche lacked significant competition, created an opportunity for PURE to offer highly competitive premiums and still be profitable.Read more