Insurance companies are investing time and money in insurance marketing strategies to acquire new customers, retain existing customers, and encourage them to renew their policies. In the insurance sector, new digital communication tools are emerging to boost effectiveness in engagement and conversion to action while. In this post, we’ll look at how personalized video is helping insurance companies like AXA differentiate their offer by putting the customer in the frame.
Digital marketing in the insurance sector
As much as we may try to plan for the future, even the best-laid plans are subject to unexpected events. Insurance policies—on ourselves, our vehicles, homes, even on our pets—is one way that we try to protect ourselves for life’s uncertainties. The choice of, however, is not accidental and is the result of various researches.
According to the ANIA (National Association of Insurance Companies) annual report, investing in insurance marketing is a mandatory choice. According to the report, the number of life insurance policies decreased by 12.5%, reducing profits by €78 billion compared to the previous year. Automobile TPL insurance also decreased by 5.6%. From these numbers, we can see that competition in this sector is growing rapidly and, consequently, the implementation of insurance marketing strategies, aimed at acquiring new customers and gaining their loyalty, will be essential for continued growth in the future.
According to an Accenture survey, 72% of those who purchase or renew a policy first conduct web research, 52% have already bought a policy online and 42% intend to buy online because they find it to be faster and cheaper. Considering that 60% of respondents said they would like a multi-channel customer experience to interact with the insurance company, more and more companies in the sector are developing online solutions.
Digital is an important channel for insurance marketing strategies in driving policy renewal. In 2016, investments in insurance marketing strategies and in InsurTech, technology applied specifically for the insurance industry, grew by 27%, increasing to €1.69 billion from €1.24 billion in 2015 (Infomobility).
New challenges for insurance marketing strategies
Having a complete and mobile-friendly website is no longer a nice-to-have, it’s a must-have for every sector. Nevertheless, in Italy, only 10% of insurance agencies have online capabilities and, in most cases, it doesn’t include mobile functionality. This is the first big challenge that insurance marketing strategies must address in order to take advantage of new innovations and technologies, such as IoT-based services to assist customers.
In the study “Financial Services’ Global Distribution & Marketing Consumer Survey”, conducted by Accenture in 2017, the report highlights how Digital Marketing, information asset management, internet of things (IoT), Robotics, Cognitive Computing, and Blockchain represent new opportunities to improve the relationship with customers throughout the customer journey. All of these tools, combined with competitive pricing, can be important drivers for customer loyalty. The biggest challenge for insurance companies is to be “phygital”, that is, able to combine the physical and the digital world.
Insurance companies are increasingly adopting a customer-centric approach, transforming the offer from passive to active. Insurance marketing strategies are now based on putting customers’ needs at the center and providing them personalized and relevant services.
Insurance marketing strategies: best practices
Until today, insurance marketing strategies consisted of interactions with the customer via mail, email, or over text message. Given the tools available today, there are new ways to build the customer relationship at each stage. Using social media is a perfect example of a new tool that can be used to build relationships with customers. Today, only 4% of insurance agencies exploit the potential of social networks (read more in this post from NAMU).
However, some insurance companies are making the most of social to support a customer-centric approach. Genialloyd interacts constantly with its users through Facebook and Twitter and provides an app to facilitate communications. Generali uses Facebook, Twitter, but also Instagram to strengthen the sense of community. Zurich boasts 480,000 fans on Facebook. Allianz has declared that it wants to invest in systems that are able to combine artificial intelligence with emotional intelligence. Reale Mutua has focused on virality and influencer marketing, creating a viral video starring soccer star Gianluigi Buffon as the defender of the “#OggettiMoltoCattivi” (really bad objects) of everyday life and from which it would be better to be insured.
Personalized video in insurance marketing strategies
Global insurance firm AXA has also decided to take advantage of video in its insurance marketing strategy. AXA has chosen Doxee Pvideo®, the personalized video based on data available for each individual customer such as age, gender, policy expiration date, car type, policy renewal options and any other useful information. Thanks to the call-to-action integrated into the video content, the user can seamlessly choose the payment method and renew the policy directly from the video, avoiding any dispersion and maximizing the conversion rate.
With this technology, your customer will no longer be a simple recipient or spectator, but the true star of the story. Personalized video can differentiate your insurance marketing strategies with a customer-centric approach that includes the customer from the very start.