Insurance firms are in a tearing hurry to protect their turf from digital upstarts.
In pursuit of their quest, they are paying millions to decipher customer behavior, that come in handy for segmenting target audience and customers based on individual purchase behaviors. Translating into increased conversions.
Understanding Buying behaviors will help insurers to...
a. Learn how each customer have their unique purchasing behavior when it comes to insurance.
b. The complexity and difficulty of any buying journeys.
c. Critical hurdles in the buying process.
d. Most and least probable predictive triggers.
e. Identify patterns and build predictive models
Behavior based segmentation
Insurance CRM solutions can now run powerful behavioral models by leveraging machine learning and analytical capability. By using past customer behavior, journey data, channel preferences etc. insurance firms can now run targeted campaigns at the right channels boosting conversions.
But for this to happen, you need to identify the five buying sentiments. These different behavioral sentiments build a buyer persona based on their online interactions and transactions.
#1 The 'cost conscious' segment
These are insurance buyers who want the best protection at minimal costs.They want to pay the lowest possible premium for the greatest protection value. The reasons can range from thriftier spending habits to bargain hunting mentality.
But customers don't buy insurance based on premium cost alone. For successfully target this segment, insurance providers should drive campaigns that stresses the importance of coverage, added value benefits, brand reputation, claim satisfactions etc., at a value priced premium.
This will convince new age, millennium and price focused customers, that your insurance offering is much better and safer than lower priced policies.
#2 The risk averse segment
Ask these customers what keeps them awake at night and they will reply, without hesitation, insurance. Customers who fall into risk averse category take extreme precaution while completing any buying journey. They are cautious and place a premium on safety, trust, deep engagement and other virtues that are hard to come by in insurance business.
Insurers should nurture direct relationships with such customers and prospects. They should provide policy comparisons, testimonials, reviews and product education and highlight easy quick and seamless claim settlement procedures.
#3 The later segment
Nothing kills insurance conversion that a customer who thinks "Maybe later?". Customers who fall into this category lack urgency or desperate need for insurance. They may be confident of their financial backup for disasters. Or they may be completely new to insurance and just browsing around to acquaint themselves with different policies.
Motivate such customers or prospect by highlight additional add on benefits to policies under the same price with the condition of limited period. Simplify online buying journeys so that you can quickly convert interest into a customer. Offer additional discount on premiums for quick purchases and highlight the risk of premium increase for buying a policy later vs. now.
#4 The just take my money segment
These prospects are manna for insurers. This customer segment is highly persuadable by attractive policy and cross sell offers. By requiring minimum intervention, they are prime targets for dramatically increasing ROI with negligible costs. However, insurers walk a tight rope between delight and annoyance for such customers. They are disappointed as easily as they are persuaded.
Insurers trying to tap into these 'birds of gold' opportunities should make use of past customer interaction data for identifying individual customer's habits of engagement. They should utilize analytical capabilities inside CRM for insurance for forecasting true incremental impact of such customers. Construct models through cross sell modelers and initiate a surprise and delight campaign aimed at fostering greater brand loyalty.
#5 The smart segment
They are thorough, meticulous researchers who strives to understand every intricate detail of a policy. These customers are well informed, networked and do not hesitate to switch brands that don't meet their expectations, regardless of costs and time. However, firms that stick to their commitments can command absolute loyalty from them.
Insurance firms can conduct survey campaigns from their insurance CRM solution to find out policy awareness levels of their customers. Identify their pain points, queries and resolve them as quickly as possible. Speed and convenience matters most to such segment. Use predictive analytics to offer tailored policies and benefits that meets their relevant needs.
These segments can be created by analyzing customer intelligence through behavioral data from interactions across multiple channels. Monetize them to enjoy high value, consistent and fast growing conversions and premium flows.
