Harnessing Data Driven Marketing for Insurance Business

Insurance companies are creating new products that deliver better services to businesses. The business market segment is the fastest growing user of insurance products. This is the result of legal regulations that are making insurance for business a mandatory part of doing business. The insurance service providers have responded to these needs by creating managed insurance services. In these, they handle all aspects of the insurance cover design to cater specifically to the needs of the company seeking it. They not only simplify the cover uptake process but also ensure that they create a structure that effectively addresses the risks pertinent to that particular business. Companies have responded quite well to these services since their introduction into the market. This is because they enable them to address compliance while still maintaining their focus on their core objectives and key business processes.

To market these services, insurance service providers have used data driven marketing. This places the focus on the customer using the services. In this marketing form, the marketing approach used is designed using the data that insurers have accumulated about their consumers. This data is retrieved, processed, and analyzed in order to gain insight into the nature of the market and likely consumer behavior. This has been quite effective in educating the insurance companies on how they should undertake their marketing for better results. The information garnered from the initial data research enables them to configure all aspects of their promotional campaigns quite accurately. The aspects that are configured are content to be used, the targeting of the consumer market with certain products, and the timing of the approach. They have seen excellent results from this process.

Data driven marketing is guided by four main principles. The first is that resources must be directed where highest profit is possible. Analysis of consumer profiles determines where uptake is likeliest to lead to increase in profits. The second rule is that customer behavior in the past and present is the best indicator of customer behavior in the future. Consumer profiles have been chosen, and demographics dropped as a useful indicator of possible market behavior. Thirdly, successful promotional campaigns are those which make the consumer feel happy about their uptake decision. The marketer must ensure that the consumer, who is convinced to buy, should feel right about doing so. Lastly, the process is cyclic with feedback used to improve. Through this tool, insurers have increased adoption of managed insurance services.