4 ways insurance companies can use consumer data to drive revenue

Insurance brands are facing new challenges with increasing competition from digital newcomers, changing consumer expectations, and generational shifts driving the need for a more customer-centric approach. In fact, a recent Bain & Company report revealed more than 80% of digitally active millennials are willing to switch to another provider, even to a brand that’s not in the insurance industry.

To meet the demands of todays’ consumers, insurers need to use data-driven strategies to boost their digital marketing capabilities and provide personalized communications.

Here are 4 ways insurance brands can use data to increase marketing ROI and drive revenue:

1. Use demographic data to create relevant acquisition & retention campaigns

Insurers can use demographic data (age, gender, marital status, income) to reach consumers with targeted campaigns that speak to their needs and depict consumers who look like your target audience. If you do not have demographic attributes for your current customer and prospect lists, you can expand your knowledge of your audience through demographic data from reputable 3rd party data providers, like – wouldn’t you know it – Data Axle.

Brand examples:

To drive consumer interest during the annual open enrollment for Medicare, Aetna sent a direct mail campaign encouraging seniors to consider the brand’s supplemental Medicare coverage. In addition to targeting those aged 65 and over – since consumers are eligible to enroll for Medicare at 65 years old – the brand could also use 3rd party data to target consumers who are about to turn 65.

New York Life Insurance created this beautiful ad for consumers who need coverage to support their growing family. To ensure this campaign reached the right audience, the brand could use Facebook audience preferences to target parents of children within specific age ranges (Figure 1: Facebook Parent Targeting). In addition, the brand could extend the campaign with a cross-channel execution by creating a complementary direct mail program that targets parents.

Figure 1: Facebook Parent Targeting

2. Use behavioral data to create personalized campaigns

Insurance brands can use behavioral data to segment and target audiences based on their behaviors – collected through website browsing, email activity, and other marketing campaign engagement metrics – thereby improving performance and relevance for acquisition campaigns, retention efforts and loyalty programs.

Brand example:

If a consumer browses renters insurance options on a brand’s website, and then fills out a request for a quote, the insurer can deliver an email trigger campaign that offers additional content that can help nurture and convert the lead. The brand can also create a custom audience segment and serve up retargeting display banner ads to keep the brand top of mind and nudge consumers towards conversion, like the one insurance brand Lemonade created below.

3. Use psychographic data to target consumers based on interests

Psychographic data (e.g., consumer interests, attitudes, and values) can provide another powerful tool to target customers. Companies generally gather psychographic details about consumers through zero-party data (e.g., preference centers, poll, quizzes) and third-party data from external providers.

Brand example:

Insurers can use psychographic data to create targeted campaigns that speak to a consumer’s unique interest and serve up a product that speaks to that interest. For example, a brand offering bicycle insurance could create campaigns that target cycling enthusiasts. Brands offering pet insurance would naturally want to create acquisition campaigns targeting pet owners, etc. Travel insurance providers, like Allianz, could use psychographic data to target travel enthusiasts.

4. Combine consumer and business data for powerful B2B campaigns

Insurers should not forget that business decision makers are consumers too. Whether you are an insurer that offers products for both businesses and consumers or a B2B insurer looking for new ways to connect with your leads, you can create powerful campaigns by combining what you know about your target accounts with consumer data that can give you a fresh perspective on what’s important for decision makers themselves.

Brand example: 

Oscar Health offers group insurance plans for employers. To stand out from the crowd and capture a business owners’ attention in an unconventional way, the brand could send a direct mail piece that is mailed to the owner’s home. Alternatively, they could create a remarketing campaign on Facebook with custom audiences using consumer data like the business owner’s interests – for example a favorite activity or sports team – to personalize the campaign.

Conclusion:

As brands navigate the changing realities of the insurance industry, digital marketing is creating powerful opportunities for insurers that are savvy enough to harness the power of data.