We’ve covered big data in – depth in recent weeks but one aspect under the umbrella of big data that insurance providers often overlook is customer acquisition – something with great implications for the bottom line.
A new study from Strategy Meets Action (SMA), an insurance strategic advisory firm found P/C insurers plan to increase the number of big data experts with advanced degrees on staff from 21% to 51% by 2016.
Nevertheless, although it is positive to see insurance companies attempting to shed the stereotype of being technologically stagnate, they often throw large sums of money at television based brand awareness campaigns that yield minimal fruitful results.
This is reinforced by a study from Rocket Fuel detailing that digital display ad spend is nine times more effective at driving awareness than TV, radio and print.
Alternatively a new trend in analytics – driven advertising technology lends itself to allow insurers to develop their digital marketing strategies in a much more cost – effective manner.
In sum, by combining first-party, third-party, and proprietary data, insurers are given the best possible view of a prospect, allowing them to target each consumer’s individual needs and to present them with more competitive quotes, with the objective of converting them.
Perhaps more importantly these technological platforms give insurers the opportunity track their digital ad spending and match that with their performance levels, thus catering to quick shifts in strategy if the existing framework is proving ineffective.
Simply put, big data makes it easier to pinpoint target audiences, track successful marketing campaigns, and quickly change campaigns to target the right prospect, with the clear objective of signing the most valuable customers.
These enhanced digital marketing campaigns save money by not taking an entirely new approach but instead build upon the existing big data strategies.
Insurers can then redistribute that money to customers through lower premiums and better service. This helps increase retention rates. As the effectiveness of marketing campaigns grows, engaging high-intent customers is sure to bring the greatest return.
