Today’s top insurance marketing strategies rely on personalization
Research indicates that two out of five U.S. consumers switch brands due to a lack of personalization or trust.
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 practical to gather, categorize and analyze data about insurance operations. Using insurtech tools such as artificial intelligence, machine learning and data analytics, insurance carriers can improve their underwriting processes, detect fraud and deliver personalized service. All of this goes a long way toward supporting and promoting marketing efforts.
What is personalized insurance, and why is it important/?
Personalized experiences and decisions are based on data to tailor them to all users involved in the insurance value chain. Here’s how insurers can use this approach to provide a custom experience that meets the expectations of their clients:
- Anticipate client demands. Customers expect and want personalized experiences online. A custom experience will help the client feel more valued and appreciated. Potential clients are more likely to buy and facilitate a great experience if they feel special with your business.
- Create a white-glove experience. Personalization is a great way to stand apart from the competition. In addition, streamlining operations and providing more accurate customer service can lead to strong relationships, referrals, and increased credibility.
- Increase return on investment (ROI). A customized approach with strategic targeting can increase ROI. For example, understanding customer preferences and behavior can allow more effective marketing and sales initiatives targeting. Now you can offer the products and services people want with greater accuracy.
Personalization tactics
Customers whose insurance services are matched to their individual needs are more likely to respond to upselling and cross-selling. Research from Accenture shows that 41% of consumers in the U.S. switch brands due to a lack of personalization or trust.
Consumers are looking for brands that understand them and maximize technology to provide them with better products and services. Here are some of the areas that can provide personalization insights:
- Insurance organizations can use demographics to create personalized experiences.
- Individual behaviors.Insurers can segment your clients by observing their general behaviors.
- Purchase/sale history.By learning client sales history, businesses can more strategically cross-sell products.
What are the benefits of personalized insurance?
- Accuracy: Streamline your flow and work more efficiently with clients. Brokers can get to know their clients better and meet their needs faster and more efficiently through personalization.
- Increased revenue: Drive more effective sales. More insight into clients’ behavior and preferences can help brokers improve their targeted marketing and sales efforts.
- Enhanced client experience: Customers feel more special, valued, and appreciated with personalized insurance and service.
- Better digital tools: Make leveraging data more accessible. With the data analysis tools necessary for personalizing insurance, brokers can easily access reports on their performances and activities that will keep them informed and help them improve.
The bottom line
Insuring consumers through personalized marketing is a uniquely effective way to increase retention rates and cross-sell new policies despite — and perhaps as a result of — disruption in the industry.
Insurance companies can start achieving 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, adherence to best practices, and an eye toward the future is critical. Insurance organizations that fail to embrace such personalized practices may find they cannot compete in the very near future.
Alice Shi (alice.shi@finaeo.com) is a marketing lead generation specialist at Finaeo Inc. Any opinions expressed here are the author’s own. A previous version of this article first published at Finaeo.com and is republished here with the author’s permission.
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