Three factors will dictate the future of insurance marketing: targeted messaging, special offers and competitive pricing.
Today’s increasingly digitized insurance market makes it easier and more convenient to collect, categorize and analyze insurance transaction data. Using insurtech tools such as artificial intelligence, machine learning, and data analytics, insurance companies can improve their underwriting processes, detect fraud, and provide personalized service. All of this goes a long way in supporting and promoting marketing efforts.
What is personalized insurance and why is it important?
Personalized experiences and decisions are driven by data to adapt them to all users involved in the insurance value chain. Here’s how insurers can use this approach to deliver a personalized experience that meets their customers’ expectations:
- Anticipate customer requests. Customers expect and want personalized experiences online. A personalized experience will help the customer feel more valued and appreciated. Potential customers are more likely to buy and facilitate a great experience if they feel special about your business.
- Create a premium experience. Personalization is a great way to stand out from the competition. Additionally, streamlining operations and providing more accurate customer service can lead to strong relationships, referrals, and increased credibility.
- Increase return on investment (ROI). A personalized approach with strategic targeting can increase ROI. For example, understanding customer preferences and behavior can enable more effective targeting of marketing and sales initiatives. Now you can deliver the products and services people are looking for with greater precision.
Personalization tactics
Customers whose insurance services are tailored to their individual needs are more likely to respond to upselling and cross-selling. Accenture research shows that 41% of US consumers switch brands due to a lack of personalization or trust.
Consumers are looking for brands that understand them and leverage technology to provide them with better products and services. Here are some of the areas that can provide personalization information:
- Insurance companies can use demographic data to create personalized experiences.
- Individual behaviors.Insurers can segment your customers by observing their general behaviors.
- Purchase/sale history.By learning the sales history of customers, companies can sell products more strategically.
What are the advantages of personalized insurance?
- Precision: Streamline your flow and work more efficiently with customers. Brokers can get to know their customers better and respond to their needs faster and more efficiently through personalization.
- Revenue increase: Generate more effective sales. A better understanding of customer behavior and preferences can help brokers improve their targeted marketing and sales efforts.
- Enriched customer experience: Customers feel more special, valued and appreciated with personalized assurance and service.
- Better digital tools: Make data mining more accessible. With the data analytics tools needed to personalize insurance, brokers can easily access reports on their performance and activities that will keep them informed and help them improve.
The bottom line
Insuring consumers through one-to-one marketing is a particularly effective way to increase retention rates and sell new policies despite – and perhaps due to – industry disruptions.
Insurance companies can start seeing positive results sooner and more effectively when they use analytics, customer data, and strategic marketing systems, some of which are already in place.
Building an intentional strategy rooted in solid processes, following best practices and looking to the future is key. Insurance organizations that do not adopt such personalized practices may find themselves unable to compete in the very near future.
Alice Shi ([email protected]) is a marketing lead generation specialist at Finaeo Inc. All opinions expressed here are those of the author. A previous version of this article originally appeared on Finaeo.com and is republished here with the author’s permission.
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