Customer Marketing for Insurance, Industry Challenges
The market is experiencing exponential technological growth, and some financial institutions are using new, AI driven technologies to keep up. That being said, it’s tough to stay innovative in a sector ruled by regulations and compliance. It’s also difficult to set yourself apart from your competition based purely on what you offer.
At a surface level, your buyers don’t see much difference between what you’re selling and what the next company is. On top of this, your path to your customer is much more complex than in most other industries. Instead of going from you to the consumer, your message often travels from you, to another financial institution, and then to the customer. You are tasked with creating a message that is comprehensive enough for two tiers of audience, and compelling enough to make the second tier your advocate when speaking to the third.
Lastly, you need to be able to keep up with easily influenced and marketing inundated customers. In the age of the internet, people do diligent research before choosing where to put their money. The amount of factors that impact their decisions are innumerable. And the demographics of people who buy certain types of insurance are shifting, as well. Many millennials are getting married later in life, meaning they aren’t interested in life insurance as early as previous generations. Your marketing needs to be able to capture all this information, draw conclusions, and only engage with meaningful and current products & promotions. Not an easy task.
What Can You Do
67% of insurance CEO’s see creativity and innovation as being paramount to the success of their organization, and cite digital and technological capabilities and customer experience as the two areas most in need of change. The general state of the industry, however, is historically more conservative and implementing innovative shifts has been difficult. For this reason, InsurTech solutions are the most widely adopted. According to PWC, here are two things you should look for in an InsurTech solution:
- Better data and analytics – In recent years, carriers have recognized the value of building or improving their data, in parallel with traditional core transformation initiatives. This has enabled them to plan for strategic data analysis and build necessary components into core systems. Modernizing core systems often leads to more reliable data, and when this data is coupled with strategic data analytics initiatives it facilitates improved process metrics, work queue volumes, and claims fraud detection.
- Better customer and agent experience – Good customer and agent experiences most often occur with modern underlying core platforms, most of which now offer self-service capabilities and can even open new customer channels. The key to great customer experiences is great data use. Your data has the power tell you what your customers and agents want, and how you should deliver it to them.
In short, you need to have comprehensive data, and the ability to utilize this data to predict and fulfill customers’ needs throughout their entire lives.
A.I. Customer Analytics Get Results
A popular way to characterize data usage is the three D’s paradigm: Data, Decision, andDelivery. When collecting data, quality and completeness is paramount in order to give effective and reliable metrics. Once a reliable metric has been established, analysis and decision making needs to take place. Trends like customer-product affinity, for example, can be used to find at risk customers for churn.
The final step is delivery to the identified segments and cohorts through outreach and promotion. This stage requires the a genuine approach, which is why human to human outreach is still the most effective strategy. Companies need to move through this cycle of data collection, decision making, and delivery quickly and accurately in order to resonate with their ever-changing customers and optimize their loyalty rewards and promotions.
To achieve this, there are two key things a business must do—and do well:
- De-silo, and unify your data. In this way you can create a comprehensive and integrated view of your customers and clients across all touch points, even enriching this data with third party information that goes beyond what they provide you themselves
- Leverage that clean and complete data to conduct deep analysis and draw correlations between thousands of data points. In this way you can analyze and predict the behaviors that are most important to your business. Things like churn likelihood, propensity to certain products (cross-sell potential), and more
Here’s where an AI engine can help. Implementing Artificial Intelligence/Machine Learning enables the creation of systems that are both smart and adaptive enough to solve problems faster and better than a human ever could. This requires a Dynamic Data Engine (DDE) and an Embedded Analytics Engine (EAE).
To have a comprehensive view of your customers, you need to unify data across all sources: online, mobile, phone calls etc. A DDE can identify, cleanse, unify, and enrich this data in real time, and for each individual customer. Once this has been done, an EAE uses the curated data to predict customer behavior. It allows you become a true advisor to your clients, and recommend the exact right offer at the right time. It can also help show other products and services, outside the “insurance” space, that are relevant and impact their insurance needs. It can also identify potential future policyholders based on shared characteristics.
AI has the power and the speed to take care of the first two D’s (data and decision) quickly and well, with little human oversight after the initial training. The power of these systems lies in their flexibility. With the data you already possess, they can find the signals your customers are sending, and suggest the right time and way to create meaningful engagement. This frees up your time and energy to focus on “Delivery”.
ZyloTech's Results in Insurance
It’s no secret that engagement is tough and competition is fierce. If your business can act faster, with more accuracy, and in line with customer needs, you will have a technological competitive advantage in the insurance sector—a sector characterized by its conservative models and slow adaption of new tech.
And ZyloTech already has a proven track record in the insurance space. Using our platform, companies have leveraged years of data on millions of customers and seen:
- 3x increase in new paid sales
- 20% increase in customer retention – transforming “failed” sales into highly profitable sales
- Remarkable 17-20% conversion rates from new web sales funnels
- 28% overall increase in return on marketing investment
In addition to these quantifiable benefits, our insurance clients achieve long-term strategic benefits. Most notably, an enhanced ability to design new product offerings based on actual customer behavior. They have gained powerful capabilities for attributing sales to specific communications and channels -- helping to systematically optimize return on marketing spend.
What Comes Next?
If you’d like to learn more, or talk about a possible use case at your company, please get in touch with us so we can explore this together and see where you goals may align with an AI solution.