Insurance & Technology: Cognizant Business Consulting Experts Say Marketing Analytics Lends a Laser-Sharp Focus to Insurers’ Marketing Spend

“Insurance companies are failing to focus the lens on identifying and marketing to their most desirable customers,” write Michael Kim, Vice-President of Insurance Consulting, and Agil Francis, Senior Manager of Insurance Consulting at Cognizant. “Instead, they are reaching many undesirable customers alongside the optimal ones.” They add, “While insurance companies are using data analytics for many of their functions—underwriting, claims management, and even agent selection—nearly no insurance companies to date are using “Big Data” type analytics to identify the right customers.”

According to Kim and Francis, surprising as many insurance marketers may find it, there are real answers to the questions they should ask, such as number of leads generated per campaign, number of prospects for every 100 leads, number of quotes generated for every 100 prospects, and number of policies issued for every 100 quotes. “Those answers can set the companies on the path to getting more and better customers, more smartly and cost effectively,” they write.

What will change by using marketing analytics? “Advertising placements of insurers will be better targeted to the bull’s eye,” the authors maintain. “They will reach the people they want to reach—the right customers. Possibly, their media mix will change—right now they blast everywhere, but the percentages of TV, online and print advertising may need adjusting for a more positive result. Best of all, word-of-mouth advertising begins to take effect. They will now spend less on advertising because they will let the right customers do the marketing for them. By using marketing analytics, insurers will get a clearer handle on their ideal customers, find more of them, and develop a smarter and more cost effective approach to marketing,” they state.

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