The foundation of successful customer acquisition is prospect data that targets consumers who are in the market to buy a specific insurance product.
Too often, insurance marketers rely on simple targeting criteria such as age, income and gender. The use of this commodity prospect data results in a higher effective cost per lead, fewer policies sold, and higher lapse rates.
Fortunately, the use of life event trigger data can help you target individuals who are highly likely to purchase an insurance product in the near future.
Recommended Strategy: Use Life Event "Trigger" Data
While likelihood to purchase insurance is driven by many different factors that are unique to each individual consumer, certain life events can have a pronounced impact on purchase.
This life event data, often called “insurance purchase triggers,” improves your response rates in two ways: targeting and personalization. You know who to target and what to say to them about their insurance needs.
Insurance marketers should combine overall purchase propensity data with specific purchase trigger data. Some of the most important insurance purchase triggers include the following:
- Getting married or divorced
- Having a baby
- Retiring or changing jobs
- Moving or buying a home
- Buying a car
Opportunity Assessment Questions
Here are a few opportunity assessment questions to give you further guidance and ideas.
- Are you satisfied with your lead conversion rates (the number of policies sold vs. leads generated)? Have you calculated the financial impact of doubling your lead conversion rate?
- Have you evaluated the link between life event data and insurance purchase likelihood across your target segments?
- Have you tested the use of life event data in your prospecting? Which of the above life event triggers have you tested?
- Have you tested the combination of purchase propensity data and life event data in your prospecting?
- Have you considered the use of different communications and offers based on the specific life event of the prospect?
- Have you considered sending different communications to different members of the household based on the specific life event of the prospect?
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Data-Driven Solutions for Insurance Marketing – Part I: Customer Acquisition
This 3-part report briefly outlines 12 proven strategies for improving customer acquisition, growth and retention. The central theme throughout all of these strategies is the use of data to reduce the cost of leads, increase the number of policies sold, and increase the growth and retention of policyholders.
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