Targeted messaging, offers, and pricing at just the right time is the future of insurance marketing. Today’s digitized insurance market makes it easier and more practical to gather, categorize, and analyze data about insurance operations. Using digital insurance technologies such as insurtech, artificial intelligence, machine learning, and data analytics, insurers can improve their underwriting processes, detect fraud and deliver personalized service.
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. Insurers can use this approach to provide a custom experience that meets the expectations of their clients.
Meet 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.
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.
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.
Customers who are matched to their individual needs are more likely to purchase, upsell, and cross-sell. 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 their needs through exciting new technologies that allow companies to provide better products and services.
Demographics. You can use demographics to create personalized experiences.
Individual behaviors. You can segment your clients by observing their general behaviors.
Purchase/sale history. By learning client sales history, you can more strategically cross-sell products.
What are the benefits of personalized insurance?
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.
Drive more effective sales. More insight into clients’ behavior and preferences can help brokers improve their targeted marketing and sales efforts.
The Client Experience
Improve client satisfaction. Customers feel more special, valued, and appreciated with personalized insurance and service.
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.
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 already in place. Building an intentional strategy rooted in solid processes, adherence to best practices, and an eye toward the future is critical. You may find that your company cannot compete as the industry embraces personalization. But the move towards the future need not overwhelm you – you still have the opportunity to capitalize on the benefits individualization offers and Finaeo can help you with this.