Abstract
This research provides an original exploration and pioneering qualitative
examination of Customer Lifetime Value (CLV) in the context of car insurance
marketing, with a particular focus on the mediating role of brand loyalty. It
introduces a novel integration of CLV and brand loyalty, an area that has been
previously explored in consumer-packaged goods and retail sectors but never in
motor insurance. This study uniquely posits that brand loyalty is not merely a
consumer characteristic, but a dynamic, brand-specific construct that
significantly impacts CLV. The cohort under investigation consists of Generation
Z, a demographic that has been underexplored in CLV research. Through
Interpretative Phenomenological Analysis (IPA) and semi-structured interviews,
the research investigates the perceptions and experiences of this cohort, offering
new insights into the psychological and emotional drivers of brand loyalty,
particularly within the car insurance industry.
The study also addresses a critical gap in CLV research by shifting the focus
from life insurance to car insurance, an under-explored area in marketing
literature. By examining the intersections of brand loyalty, CLV, and customer
retention in the car insurance industry, the research contributes to refining
strategic marketing frameworks, particularly in targeting high-value customer
segments and optimizing long-term customer relationships. The findings offer
actionable strategies for enhancing customer satisfaction, reducing churn, and
improving profitability in a competitive, service-driven industry. This work not only
advances theoretical understanding but also presents practical implications for
marketing practitioners, challenging traditional approaches and offering a fresh
perspective on how CLV can be applied beyond conventional sectors like retail
and life insurance. The study underscores the importance of digital
transformation in fostering long-term brand loyalty by leveraging technology and
data to create personalized experiences and predictive strategies for insurers. It
also emphasizes that brand loyalty is an ongoing process, highlighting the need
for insurers to remain responsive and consistently invest in customer satisfaction
to maintain loyalty. Furthermore, the research delves into the potential of
emerging technologies, particularly autonomous driving, offering insurers new
opportunities to innovate, adapt, and position themselves for future growth and
leadership in the industry.