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 purchase propensity data can help you target individuals who are highly likely to purchase an insurance product in the near future.
Recommended Strategy: Use Insurance Purchase Propensity Data
Insurance purchase propensity data accurately identifies consumers who are most likely to buy a policy in the next several months. This allows marketers to eliminate 90% of the population who are not in the market. This increases response rates, lowers the cost per lead, and improves conversion.
As an example, based on advanced predictive analytics, there are currently 18,731,298 consumers in the United States who are in the market to buy an insurance product online. These consumers can be combined with specific insurance product propensities to unlock a precise online acquisition strategy.
Opportunity Assessment Questions
Here are a few opportunity assessment questions to give you further guidance and ideas.
- Have your response rates declined and/or your costs per lead risen? Have you estimated the financial benefits of cutting lead costs in half?
- Are you using commodity prospect data that relies on basic selection criteria such as age and income? Or, have you tested purchase propensity data? Do you know how many consumers in your target areas are likely to buy the following insurance products?
- Term Life?
- Whole Life?
- Final Expense (Burial) Insurance?
- Property and Casualty Insurance?
- Medicare Advantage?
- Long Term Care?
- Have you tested lookalike models, response models or conversion models to prioritize your prospect data?
- Have you tested the combination of insurance purchase propensity data and insurance lapse data?
- Have you considered the use of consumer data to prioritize which prospects are most likely to respond to digital/social marketing vs. those who are best suited for direct mail and telemarketing?
- Have you tested different combinations of messages, media and timing (or cadence) of your campaigns?
Download Your Copy of Our Complimentary Report
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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