Research recently conducted by AX found that sales of premium and prestige vehicles are up significantly. In fact, in just a decade their market has skyrocketed by nearly 60%.
There are push and pull factors at play; a combination of consumer demand and manufacturers offering more upmarket alternatives while venturing into previously untapped vehicle segments.
The introduction of cars like the BMW 1 Series and Mercedes A-Class – traditionally not a segment premium brands played in over a decade ago precipitated this change.
With this undeniable trend, does the increased number of prestige car owners mean there are more drivers who now demand, and expect, higher levels of customer service, especially from insurers and brokers
We suspect that insurers who can elevate their customer service offering – In conjunction with the higher value, prestige vehicles being driven – to match the surge in premium market share, could see increased customer satisfaction and loyalty.
We all know that one slip up in the customer journey, whether it’s in the buying phase or during ownership, can cause great dissatisfaction, leading to the potential loss of a customer.
In the replacement vehicle space, as we have seen prestige car brands increase their market share, people are paying more for something they are proud of, but are not willing to downgrade to a less premium vehicle while theirs is repaired following an accident.
So, as well as offering exemplary customer service through training and technology, the ability to provide a suitable replacement becomes even more important to the customer – food for thought for insurers and brokers alike.