Marketing Analytics in Insurance: Time for Data-Driven Customer Acquisition

Marketing Analytics in Insurance: Time for Data-Driven  Customer AcquisitionIf someone asked me for one word that could accurately describe the current marketing strategy used in the insurance industry, I think I’d have to reply: Carpet-bomb…and that’s not a good thing. Unfortunately, the insurance industry as a whole hasn’t caught onto the concept of targeting and is wasting money on marketing efforts that are largely ineffective. Insurance companies have ended up reaching out to both desirable and undesirable customers in an attempt to reach as many people as possible. This untargeted approach results in wasted time, money and effort.

Marketing Analytics

It seems obvious, but in many industries, including insurance, it’s not. In an industry where transparency is completely necessary, the value of marketing analytics can not be stressed enough. Insurance companies are no strangers to the use of data, they use it in almost every aspect of their trade…except marketing, it’s time for that to change. Data is critical to identifying the right customers at the right point in the lifecycle and targeting them in the right way.

Luckily, you don’t need to reinvent the wheel when it comes to data and analytics, you just need to be able to understand it in a way that’s meaningful to your team. Boiled down, what you want is to identify the customers who have the highest probability of becoming clients, those whose actions identify them as highly interested in your services.

Where Does the Data Come From?

Good question! You’ll need data from both internal and external sources. Your internal data is going to provide you with meaningful insight about what your customers, in particular, are looking for, why they choose your product specifically and what business challenges you’re meeting for them.

External data becomes important when you’re trying to figure out where and when to advertise. You’ll want demographic data from social media channels and websites so you know where your customer is going and at what time of day. If your ideal clients are male’s age 35-40, you’re probably not going to want to advertise on the Cooking Light website, for example.

What Will Change?

Once insurance companies start embracing marketing analytics, they’ll find themselves working smarter instead of harder. The phrase is cliché but certainly applies in this context. The more targeted the marketing becomes, the less money it will cost to acquire a customer and be spent on unfruitful efforts. Sound too good to be true? Other industries have been doing it for years with fantastic results. So where do you start? It doesn’t matter much where you start, the success lies in when you start. An early start will obviously keep you ahead in market.

The Tools

It’s important to have the right tools to measure your data and compile it in a way that’s meaningful to your decision-making process. Many insurance organizations have no tools at all in their marketing arsenal. It’s a good idea to work with an organization who can help you not only choose the right tools but ensure those tools are working together to provide you with the most meaningful data.

There are tools for email marketing, content management, data collection, etc., but you need the right mix to ensure success. Creating an analytics system for your insurance organization doesn’t have to be overwhelming, with the right tools, you’ll see a return on your investment quickly.

 

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Rupesh Khare

Rupesh has an extensive, around 18 years, experience in Consulting and Strategic Analytics. The experience spans into multiple domains such as HR Analytics, Pharmaceutical and Non Life Insurance (Actuarial- Property and Casualty). In this journey, he majorly worked with HSBC, Aon Hewitt, marketRx and XL Group. He is currently pursuing one year full time Sloan’s Master in Leadership and Strategy at London Business School, London. Prior to this, he has an integrated MBA (Finance) from IBS Ahmedabad and M Tech (Mining Engineering) from IIT Kharagpur.