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A data-centric customer acquisition playbook for insurance companies

30 second summary:

  • In their recently released playbook, Data Axle uses brand examples from top companies like John Hancock, Aetna, Esurance, and others to illustrate how data can be used to create targeted acquisition programs.
  • The playbook describes a four-phase acquisition approach.
  • The phases summarized below include: setting a baseline / defining a goal, defining your audience, identifying the audience’s needs, motivations and preferences, and implementing a go-to-market plan.
  • You can download the insurer’s customer acquisition playbook from ClickZ.

Data Axle, a leading provider of data and real-time business intelligence solutions, recently released a comprehensive acquisition guide for insurance companies. Insurance companies face unique customer acquisition challenges, including rapidly changing customer needs and high acquisition costs.

Data Axle’s Playbook shows how data can be used to create an effective acquisition strategy. Using examples from top insurance brands and a comprehensive four-phase approach, Data Axle provides a roadmap that insurance companies can use to build a data-driven growth path.

This article summarizes the Data Axle approach and provides a brief overview of two examples, but only addresses the information in the manual. Download Data Axle’s to get all the details (and data) from the source The insurer’s customer acquisition playbook today.

Content created in collaboration with Data Axle.

Phase 1: Establishing a baseline and setting goals

Phase 1 of the playbook focuses on planning. Data Axle recommends insurance companies to conduct a thorough analysis of past campaign performance, including a review of past key performance indicators (KPIs). It emphasizes the importance of involving multiple business actors in the review process.

Data Axle writes: “The process begins with an in-depth analysis of past performance, current key performance indicators (KPIs) and acquisition needs across all business areas. This ensures that the overarching acquisition strategy meets business goals and gives all teams a clear direction. “

Legacy data can provide valuable insights into what worked and what didn’t. This allows insurance companies to focus their strategy on the best potential sources of income.

Brand example: John Hancock

John Hancock wanted to increase enrollments and attract a younger audience. They also wanted to improve customer loyalty. When reviewing previous customer data, they found that their policyholders had an average of only two interactions with insurers per year.

Source: Data Axle, the playbook for acquiring insurance customers

They revamped their approach to the customer experience by combining a technology-based wellness program with life insurance using a simple digital registration process and increasing the number of customer interactions to 23 per month. They also made the insurance purchase process less of a hassle.

John Hancock began his planning process by identifying three goals: improving customer loyalty, increasing signups, and attracting younger audiences. Defining goals is a good place to start.

Here are some general goals that Data Axle listed in their playbook:

  • Compensate for abrasion
  • Grow your customer base
  • Achieve sales or lead goals
  • Expansion into new areas
  • Reintegration of previous policyholders

Customer acquisition

Source: Data Axle, the playbook for acquiring insurance customers

Phase 2: Define your audience

Identifying the most profitable customer segments is the next step in Data Axle’s four-phase approach to developing an acquisition strategy.

The playbook lists four questions that insurers can use to identify targets for acquisition campaigns:

Who do you have today Data Axle recommends using a combination of first-party customer data with third-party data to identify your customers with the greatest value.

Third-party data providers can match your customer data with insights about consumer interests, demographic data, and other important information.

Using this combined information, you can create customer profiles or personas that represent different types of customers. Personas enable refined campaign alignment and customer personalization.

  • Who are you looking for This question helps insurers define which audiences they want (or need) to address in order to achieve their business goals. The answer informs the acquisition strategy.
  • How much are you willing to pay to get them? The cost per acquisition (CPA) is the amount of money it costs to acquire a customer. The CPA goal is related to sales per customer and helps in setting an acquisition budget. Data Axle writes, “Insurance companies should calculate longer-term metrics like average customer lifetime and revenue per policyholder to determine how much they are willing to spend on new acquisitions.”
  • How can you identify your prospects? Data Axle lists several examples of data-driven acquisition models that insurance companies can use to identify high-quality, high-converting prospects. Models such as look-alike prospects, response models, and custom audiences use first-party and third-party data to identify the right audiences.

Phase 3: Identify your audience’s needs, motivations, and preferences

The third phase of the data-driven collection approach focuses on connecting with the audiences you have identified. This phase relies on data to shape your acquisition strategy.

Data Axle encourages insurers to ask the following questions:

  • Which problem are interested parties trying to solve?
  • When do you need your product / service?
  • Where can you contact them?
  • What messages will motivate you?

Answering the above questions will help uncover the weak points of high quality insurance customers. Data Axle writes, “Most consumers don’t want to get insurance. You want to meet a need – peace of mind, financial security, or maybe a healthy life. “

Brand example: lemonade

Lemonade is an insurance industry disruptor whose goal is to simplify the insurance purchase process for policyholders and help them avoid “bureaucracy” and “long waits”.

Lemonade also appeals to socially conscious consumers by helping policyholders support various causes. As shown in the examples below, messaging focuses on solving specific customer issues (quick coverage, quick payment, easy sign-up, etc.).

Source: Data Axle, the playbook for acquiring insurance customers

Phase 4: Put your go-to-market plan into action

In the last phase of customer acquisition, all other steps are summarized, relevant teams are connected, technology and data platforms are selected and the acquisition process is completed. Data Axle emphasizes the importance of cross-team collaboration in implementing a customer acquisition strategy.

Data Axle writes, “Brands can improve the results of acquisition programs by focusing on tactical coordination when it is time to get to market.”

Tactical coordination includes team alignment, creative testing and agreements on messaging, media channel identification and management, and a clear reporting infrastructure and strategy. This is where the data services and technology from Data Axle fit in. Possible solutions include:

  • Business and consumer databases
  • A data acquisition platform
  • Solutions for direct mail / media planning
  • B2C lead generation solutions

The playbook provides detailed information on how insurance companies can create a data-driven customer acquisition strategy, including how to drill down into performance measurement techniques and how to find the right internal and external expertise to advance your strategy.

There are also many other brand examples of innovative acquisition strategies and approaches from insurance companies such as Northwestern Mutual, Aetna and Cigna.

You can download Data Axle’s free guide, the insurer’s customer acquisition playbook, here.

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