Insurance Firms Should Market More to Existing Policy Holders CMO Council Finds
“Insurance marketers must refrain from just looking at the surface measures of policy size and key accounts as the exclusive for retention marketing and reactivation strategy. The greatest opportunity to grow business resides within their own policy holder and agent channel base.”
When looking into their existing customer pool, 22 percent of marketers are looking at customer lifetime spend and loyalty to the company, potentially missing an opportunity to look at lifetime value and opportunity. This tendency to overlook up-sell and cross-sell opportunities are further punctuated as only nine percent of respondents are leveraging communications to existing customers to up-sell or cross sell as part of a retention marketing strategy. Instead, marketers are looking to strategic account reviews that tend to only focus on the most profitable customers with the biggest portfolios, almost completely ignoring dormant, departed or disaffected customers.
“Insurance marketers have the opportunity to break the cycle of data paralysis as their customers are open to engaging and deepening relationships with providers they trust and depend on,” said Sandra Zoratti, Vice President of Global Solutions Marketing at InfoPrint Solutions Company. “It is a rare occurrence where loyal customers indicate that, if an offer is relevant and meaningful, they will buy and consolidate services and grow the overall value of their engagement. While it is hard to do, this invitation to retention is a call to action to get started.”
The Consumer Policy Perspective
According to 42 percent of insurance marketers, their customers are going online and are demanding more self-service and always-on options. However, when asked, consumers indicate that the online solutions are a convenience they appreciate; they still value easy to understand policies, statements and contracts more. In fact, as marketers focus on self-service and online applications, only 27 percent value online payment and 16 percent value self-service online tools, while 40 percent value easy to understand policies, statements and contracts.