For most insurers, reaching customers when they’re actively looking for coverage remains guesswork. Companies often blanket the market with their message, attempting to gain attention, resulting in massive spending with unclear returns. But with more than 500 predefined consumer life events – or triggers – available for analysis, the power of new data-driven solutions can help insurers improve response rates and conversions, reduce costs and power greater returns on investment.
Triggers are one of the strongest indicators of who is currently shopping for insurance. In order to reach potential new clients, property and casualty insurance companies spent $7.5 billion in 2018 on marketing, a 13.2% increase from 2017.1 By tapping into actual insurance shopping signals, insurers can more effectively target new business and assist current customers looking for additional coverage.
How it works
Monitoring the credit database for certain events in consumer activity can help insurers identify potential new customers or promote cross-selling to existing customers. Marketing programs can be tailored for specific demographics and credit-based profiles to increase conversions. Targeting consumers who have received an insurance quote, have a new address or who have recently taken out a loan for a new car are all leading indicators of insurance shopping and can maximize the effectiveness of marketing dollars. Pilot programs can help reveal the value of triggers and help determine which life events best match existing marketing efforts and offer strong returns.
Using triggers for retention
While useful for finding new prospects, triggers can also help retain current customers by monitoring when they may be shopping for new insurance. Besides identifying clients who may switch to another carrier, monitoring existing business can also help pinpoint high-value customers.
Acquiring a new customer can be an expensive venture for many carriers. By monitoring credit reports for trigger events, companies can determine when an existing client is looking for coverage and offer personalized, targeted information to help meet that need. That can go a long way to help keep current customers happy since 40% of those who switch insurance companies do so around a life event.2
Pull the trigger quickly
Insurers looking to implement marketing programs driven by triggers should act quickly. Insurance shopping is most likely done within the first 30 days of a life event.3 That’s why delivering information on life events within the first 24 hours is a vital key to success. Once insurers have data on such life events, they can proactively reach out to make a personalized offer.
Speedy deployment of marketing campaigns and rapid response times help improve customer satisfaction and open the door for cross-selling policies to existing clients based on their individual needs.
Sending 3.4 billion pieces of direct mail to potential customers, like the insurance industry did in 20184, can result in new business, but triggers are more targeted way to identify true shoppers and spend your marketing dollars more efficiently.
To learn more about acquisition and retention triggers, please visit www.transunion.com/industry/insurance
1S&P Global Market Intelligence, Dowling & Partners Analysis. 2019.
2Adamova, M. et al. (2018). How traditional insurance carriers can disrupt through personalized marketing. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/how-traditional-insurance-carriers-can-disrupt-through-personalized-marketing
3TransUnion internal database
4Clemens, Tara. Insurance Marketing Trends 2018. Retrieved from https://www.mintel.com/blog/insurance/insurance-marketing-trends-2018-howd-we-do