Lemonade has experienced significant customer growth since commenced operations; however, they may not be able to maintain this growth and customer base could shrink over time.
Their ability to attract new customers and retain existing customers depends, in large part, on ability to continue to be perceived as providing delightful and superior insurance-buying and claims-filing customer experiences, competitive pricing, and adequate insurance coverage.
In order to maintain this perception, they may be required to incur significantly higher marketing expenses, costs related to improving service, and lower margins in order to attract new customers and retain existing customers. If they fail to remain competitive on customer experience, pricing, and insurance coverage options. There are also many other factors that could negatively affect ability to grow customer base, including if:
- fail to effectively use search engines, social media platforms, digital app stores, content-based online advertising, and other online sources for generating traffic to our website and our online app;
- potential customers in a particular marketplace or generally do not meet our underwriting guidelines;
- competitors mimic digital platform, causing current and potential customers to purchase their insurance products instead of products;
- digital platform experiences disruptions;
- experience unfavorable shifts in customer perception of chat-bots;
- suffer reputational harm to brand resulting from negative publicity, whether accurate or inaccurate;
- fail to expand geographically;
- fail to offer new and competitive products;
- customers have difficulty installing, updating or otherwise accessing our app or website on mobile devices or web browsers as a result of actions by us or third parties;
- technical or other problems frustrate the customer experience, particularly if those problems prevent us from generating quotes or paying claims in a fast and reliable manner; or
- they are unable to address customer concerns regarding the content, privacy, and security of digital platform.