Top use cases for Marketing Automation in the Insurance Industry

The UK insurance industry boasts an impressive total premium income of $282 billion. And stands as the fourth largest in the world.

Even so, it faces considerable challenges. A difficult market, alongside digital disruption, and fast-changing consumer demands has brought about a whole new set of issues for the industry to tackle.

Source – Abi.org

For insurers, technology, automation, and AI are no longer a vision of the distant future. They are very apparent today.

But instead of embracing this change, many businesses are struggling to adapt. Or even to know where to begin.

So, read on to learn some of the automation use cases from our clients within the insurance industry.

You may just find yourself inspired.

Understanding target audience

Challenge

Understanding target audience is important for any industry. But with increasing competition coupled with increasing customer demands, insurers must understand their audience to ensure their marketing is highly tailored to their needs.

However, understanding the perfect customer comes with challenges. Many of which are caused by data silos which limit the amount of useful information that insurers hold on their audience. 

Solution

To begin to understand who their perfect customer is, insurers must address their data issues.

By connecting disparate data systems, such as CRMs, ERPs, and ESPs, insurers can consolidate their data and build a 360 view of their audience. They can focus on demographic, behavioural, and purchase data. As well as report on ROI generated.

This is an essential step to both understanding and engaging with a target audience. As without the data, automation of personalised, relevant, and tailored communication is virtually impossible.

Increasing acquisition rates

Challenge

Increased competition from both traditional insurers, FinTech and InsurTech, alongside ‘non-traditional’ providers, means that acquiring customers has become more difficult than ever.

This is worsened by the significant cost challenges that insurers have faced over recent years. Often meaning they must decrease their acquisition budget where possible.

Insurers who previously had a solid lead generation and acquisition strategy need to review their tactics with new challenges and audiences in mind.

Solution

One of the many benefits of marketing automation is that after the initial upfront time and costs required, automation is low-cost and not resource intensive.

This means that marketers can produce streams of automated and tailored email and website communications to improve acquisition. At little extra cost.

And there are so many automations to choose from to increase acquisition rates. Quote abandonment campaigns to encourage prospects to re-engage. Targeted offers and discounts based on behavioural data. And seamless cross-channel experiences to ensure engagement via customers’ preferred channels.

Improving renewal rates

Challenge

When it comes to renewal time, it’s common for customers to begin browsing for a better deal. With 84% of consumers shopping around at renewal, and only 53% staying with their existing provider.

It’s clear that renewal time is a key stage where insurers need to engage with their customers to make them feel loved.

Solution

Fortunately, automation offers a whole host of tactics for retaining customers when renewal time comes around.

Firstly, it’s important to engage with them before renewal time. Using automation, insurers can trigger VIP campaigns to build a positive brand sentiment early.

This can then be followed up with a specific renewal campaign. Which should clearly inform the recipient that it’s time for renewal, and make it as easy as possible for them to do so.

To help improve renewal rates, the renewal process should be straightforward. There shouldn’t be any excuse for the customer to turn to a competitor.

Insurers can use automation to achieve this. Whether it be an automated renewal email with a clear call to action. A discount to encourage quick renewal. Or a confirmation that their insurance has been renewed.

Boosting engagement with prospects and customers

Challenge

It may not come as a surprise to know that insurance brands with higher engagement rates have higher retention rates and lower shopping rates.

And fortunately for smaller brands, it isn’t always the larger brands that have the highest engagement.

Source – Consumer Intelligence

Another reason that engagement is so key for insurers is the depth of information that customers are required to understand. Insurers are well aware that terms and conditions can be tedious, but they are important nonetheless. So, ensuring audiences are engaged with policy details is essential.

Solution

It’s clear that automation is essential for personalisation, targeting, and relevancy. And it is these elements that help to build engagement with an audience.

Insurers can use their understanding of their audience to create a marketing plan that targets every stage of the customer lifecycle.

From quote abandonment campaigns, to personalised welcome emails. All the way through to upsell emails and renewal reminders.

Do you work within the insurance industry?

If you’re a business in this industry and looking to understand your audience, increase acquisition, and keep your customers engaged. We can help.

Get in touch for a no obligation chat with one of our friendly experts.