Gaining the upper hand in the digital age
Data-driven customer data can help insurers stand out in the digital engagement era.
Our new reality makes it more difficult than ever for P&C insurers to chart the buying journey of the average insurance consumer. The journey is no longer linear and mapping consumer interactions across the numerous channels now available to them (websites, mobile apps, chatbots, phone calls, agents, etc.) is an uphill battle.
For insurance marketers to more effectively engage and provide exceptional, unique, customer-centric experiences, they must have a clear picture of who their customers are, what they want now, and what they’re likely to need in the future. To succeed in today’s crowded marketplace, insurance providers must focus on reaching the right consumers with the right message at the right time, which requires a consistent, data-driven marketing strategy across all platforms.
What specific strategic changes can insurers make to stand out in this new era of digital transformation?
Improving the collection and organization of first-party data is a good place to start.
P&C insurance providers already hold or have access to large volumes of data related to their customers and prospects. This data, however, tends to be partial, aged and poorly organized, which makes it difficult to share between departments and divisions. Insurers must eliminate these obstacles to have a deeper understanding of how consumers join, interact with, and exit the business.
Gathering and making sense of first-party data allows insurers to utilize this data to generate more relevant client engagements, improving marketing success rates by creating campaigns that target people with similar characteristics and habits. In addition, focusing more on first-party data also allows insurers to identify the most valuable customers, which in turn helps to build marketing campaigns that appeal to lookalike audiences based on the qualities and behaviors of these high-value clients. This is especially important now when profitability is challenged.
Insurers that work with reputable third-party partners improve their message relevance significantly.
Leading insurance companies have access to highly rich customer profiles, down to the household level, including behavioral data. More and more of today’s leading P&C insurers are utilizing the assistance of third-party data suppliers and customer identification resolution specialists to enhance the value of their databases and acquire insights into the unique requirements of their clients, the urgency of those demands, and the most effective strategies to fulfill them.
As the rivalry in the digital marketing ecosystem intensifies, insurance marketers that can effectively use customer knowledge will have the upper hand. Enter the era of hyper-personalization.
Hyper-personalization is the pinnacle of the marketing axiom of “right channel, right location, right time.” Carriers should utilize all related technologies surrounding data, such as analytics, artificial intelligence (AI), automation, and more to develop highly contextualized communications, starting right at the moment of contact.
For many customers, brand loyalty is critical in light of the present economic climate. Families and individuals are increasingly having to make difficult choices about their spending priorities in the face of increasing food and energy expenses. Insurance providers who go the extra mile in personalization will better retain customers through these challenges.
Responsibility rises with more data. Making sure consumer data is properly governed is essential.
Becoming a customer-centric insurer means adhering to an increasing number of industry and privacy regulations, such as the General Data Protection Regulation (GDPR), in order to protect consumer data.
In data governance, the availability, integrity, and security of consumer data are regulated by internal data standards and external privacy legislation, both of which are based on standards developed internally. People, procedures, and technology from all facets of data gathering work together to achieve this, with a heavy emphasis on both ethics and security.
To surpass production targets in the current market, insurance providers must create a balance between seeking risks and capturing active customers.
Adopting a truly customer-centric approach, P&C marketers can reach consumers across all channels with personalized messages. Whether a consumer is talking to an agent or looking for new policies on a mobile app, those rich data insights should fuel relevant and timely messages and interactions that resonate with the buyer. In an increasingly competitive and crowded space, P&C insurance providers must take action to truly understand who their current and future customers are to stand out.
Jeff Piotrowski is the insurance market leader for Verisk Marketing Solutions. Contact him at jpiotrowski@jornaya.com.
Related:
Insurtech and incumbent carriers: Partners in progress