Officials for Farmers Insurance, one of the largest multiline insurers in the U.S., want to recognize and reward customer loyalty.
As a result, the company announced the launch of the Farmers® Rewards Visa® Card, a credit card offering designed to reward customers for their loyalty. Farmers will initially roll out a targeted campaign to customers in Ohio, New Jersey, and Washington.
The new Farmers Rewards Visa Card issued by Alliance Data Systems Corp.’s Card Services business, will award customers who use the card to pay their insurance products with 3x reward points on eligible products. They'll also earn 3x points when they use the card for gas purchases, 3x points for home improvement and 1x point on all other purchases where Visa is accepted.
Here are some key features of the new Farmers Rewards Visa Card include:
3x points for every $1 spent on Farmers products
3x points for every $1 spent on home improvement
3x points for every $1 spent on fuel/gas
1x points for every $1 spent everywhere else Visa is accepted
Flexible point redemption – ability for customers to redeem points to offset purchases, including Farmers products. Customers can also redeem points for travel, merchandise, gift cards, and more
3,000 points after you spend $500 in purchases outside of Farmers within the first 90 days of account opening
1,000 Annual Thank You bonus points on your anniversary of account opening
0% introductory APR on all purchases during the first 12 months, after that, standard variable APR of 13.24% - 20.24% (based on Prime Rate and your creditworthiness). †
No annual fee
Unlimited points with no expiration
Dave Williams, Head of Consumer Research & Insights for Farmers Insurance, talked to Loyalty360 about the company’s new loyalty offering.
What factors prompted Farmers Insurance to launch this new loyalty program and what are your goals for it?
As a customer-focused company, Farmers Insurance is continually looking for ways to better serve our customers. In listening to our customers, we saw an opportunity through a relationship with Comenity Bank to bring the Farmers brand of smart to customers in a whole new way – through a new rewards program focused on recognizing customers for their loyalty. The new Farmers Rewards Visa card offers cardholders a generous bonus points program, the opportunity to earn unlimited points with no expiration and flexible point redemption policy, and provides a strong platform to reward our customers.
How does Farmers Insurance define customer loyalty and has that definition changed or evolved in recent years?
We see customer loyalty in several ways. From standard loyalty metrics, like Net Promoter Scores to customer retention metrics and others, understanding how our customers feel about us is crucial. Customer loyalty has always been a critical part of the Farmers business model and it will continue to play an important role into the future. This new recognition program is part of our ongoing efforts to reward customer loyalty.
How important is listening to your customers and did that play a role in this loyalty program launch?
Understanding customer wants and needs is critical to our success. At Farmers, we are a customer-centered, agent-powered insurer that is committed to continuous customer experience improvement. With customers wanting to be appreciated, we saw recognizing customer loyalty through the Farmers Rewards Visa card program, as an extension of our commitment to making customers smarter about their insurance options by offering a way for them to earn valuable rewards points when they use their rewards card for things they already purchase.