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Driving data insurers personalize marketing campaigns

Driving data insurers personalize marketing campaigns
Written by publishing team

Let’s deal with personal matters.

By now, auto insurance companies, big and small, are likely aware of the growing consumer demand for personalization across the market.

according to McKinsey, emphasizing that personalization is the key for insurance companies to compete with digital disruption. Highlighting the advantages of personalization in insurance, McKenzie also notes that each year, American personal auto insurers in the United States can earn an additional $2 billion by keeping 10% of the direct written keys to the premium from one insurance company to another.

Part of this pressure to personalize across auto insurance comes from watching other industries Reap the benefits of successful strategies. These include reduced customer acquisition costs by up to 50%, increased revenue by up to 40%, increased customer satisfaction by 5-10%, and increased marketing ROI by 5-10%.

The demand for personal experiences cannot be ignored
If competing with digital disruptors isn’t reason enough for auto insurers to jump into personalized marketing, a Youbiquity Finance Report It found that 21% of clients say their insurance providers offer no customization, 80% of clients want personalized offers, and 77% are willing to share behavioral data for lower premiums and faster settlements.

Of course, today’s epidemic era, which includes one of The most expensive years in history For the industry, it is another important catalyst for insurance companies to provide better and more convenient personalized experiences.

as Jim CarrollTrend and transformation expert at JA Caroll Consulting said: “With COVID-19 exposing a wide swath of the population to the pleasure of premium online services like Amazon and Apple, consumers now expect every company and every industry to provide the same level of professional service…which increases Outlook for personal insurance.

To meet these expectations, insurers must not only learn and re-learn their customers’ needs and preferences, but also eliminate data paralysis with appropriate AI-powered technology. By accessing critical mobility risk insights, not only can they achieve effective targeted marketing efforts, but they can also leverage additional solutions to improve the overall customer experience. Here’s how.

Benefit from insights into mobility risks
more Forward-thinking insurance companiesAccording to EY, “They invest in new data sources, analytics platforms, and decision engines powered by artificial intelligence (AI) that can match producers with like-minded customers or can attract customers with attractive offers and action steps based on their previous choices.”

Results? Publishers serve their customers more effectively, consumers have more reliable and convenient interactions with their insurers, and insurers can drive customer engagement and growth, ultimately leading to profitability and long-term retention.

To this end, auto insurers can leverage insights into critical mobility risks such as distracted driving, hard turns, and more, and turn them into effective personal marketing campaigns. Here’s how it will work:

Trusted “producers” or app publishers such as car buying platforms, can embed digital offerings into their apps to provide added value to their users. Through these ads, consumers are asked to start a quick and easy test drive experience which could mean significant savings on car insurance. With the help of the appropriate Mobility Risk Intelligence provider, insurers can then score these test drivers based on specific driving behavior criteria, and provide customized quotes based on that behavior, thus obtaining the safest drivers. Win, win, win.

Fair pricing
Collecting critical mobility data for super-preferred risks addresses another key issue raised by consumers: pricing fairness.

Traditional risk factors included demographic data such as age, gender, zip code, and credit scores. Consumer advocacy groups have called it biased and unfair, and some states in the US have it Ban the use of credit scores and other factors to determine risk.

Providing personalized auto insurance quotes based on data on how consumers drive is just one way to reintroduce this element of fairness while boosting customer satisfaction and retention.

Think Big: More Value-Added Experiences
Historically, auto insurers have faced a major industry-wide problem: limited access to critical data. Newfound understanding of consumer driving behaviors via the Mobility Risk Intelligence (MRI) platform can help insurance companies provide more Value for their customers, beyond customer acquisition and equity.

This involves targeting audiences based on their commuting habits. Access to behavioral data such as night driving, weekend driving, distracted driving, etc. can help insurance companies more effectively segment their customers, and offer incentives based on their behaviors. Now is the time for insurance companies to think big, leveraging new data to create multiple customized product offerings.

What might some of these value-added personal experiences look like? First, safe drivers who score well based on criteria set by insurance companies can be rewarded with loyalty programs (think: getting gift cards for their favorite brands). They may also enjoy competing with friends through endearing experiences. Rewarding certain behaviors in more personalized and playful ways can help insurers keep risks low, while improving overall road and driver safety.

Looking Ahead: The Next Iteration of Personalization in Insurance Marketing
With the right technology partner, auto insurers can really start to innovate to grow their overall business — all using critical mobility risk insights.

From acquiring safer drivers to creating fun and inline customer experiences that encourage safe driving, opportunities abound for insurance companies to enjoy a first-mover advantage in the marketplace.

But what more can be done by accessing these driving insights as we look forward? More specifically, what does the next iteration of personalization look like in auto insurance marketing?

We anticipate the emergence of big data platforms that will allow insurance companies to gain insights from millions of drivers. It will take into account not only driving behavior but also massive amounts of collision data and lane safety analytics that will help insurers to improve even further in their target marketing – right from the point of sale.


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