The Role of Marketing Automation in the Insurance Industry

Marketing Automation

The insurance sector has mastered the skill of managing and comprehending heaps of data generated on a daily basis. This business industry is usually very vigilant, extremely controlled by government bodies and en route to a lower amount of transformation rather than fast technological development. But as the period of digitalization continues to transform the way businesses operate, insurers are gently but surely understanding the benefits of automation.

The insurance industry is far from the concept of marketing automation that offers personalized communication with each across a wide target audience. It helps you gain deep insights of every individual and react on it, which ultimately help insurers to augment their customer satisfaction ratio.

A survey was conducted among 1000 insurance agencies by ITC and Velocify, Techsurance Marketing Revolution in the US, which reported that marketing automation would be the next big thing in the insurance industry. Some of the most enticing statistics from this study are listed below:

  • 71% of consumers prefer to purchase insurance online and get a quote for the same

  • 66% of consumers shopping insurance online look for better prices

  • 62% of online shoppers choose between two or three quotes

Basically, consumers browse through the Internet to get the best quote that suits their pocket. This apparently means that insurance firms should focus more on enhancing their marketing techniques using automation to achieve better conversion rate. Some interesting aspects to be noted from the above study:

  • Insurance companies that spend a better amount on marketing will more likely witness a rapid growth regardless of their size and domain

  • Insurance companies who optimize paid marketing campaign have a higher growth rate comparatively

  • Insurers who sell a higher percentage of unique insurance policies are the one who spends on marketing more over those old selling standards.

  • For generating more leads, marketing automation will play an important role

  • Insurance firms using marketing automation will sell more policies from those who don't use automation

Let's understand the automation ways you can optimize for your insurance business.

Now that you've got a conceptual idea of how marketing automation is valuable for your insurance business, let's glance over some practical ways to use automation to increase your lead:

1. Enable you to offer personalized services

In order to deliver better services to your client, the sales team should make their communication bespoke and seamless. Marketing automation may give you a notion of "mass emails," but the fact is, this concept actually outperforms when it comes to personalization. You can automate birthday messages, occasional wishes to your customers, and a lot more to keep that touch with your customers. Marketing automation platforms help to process database and generate significant insights for the insurance firms to target better their audience such as how many customers purchase policies online, what channel they prefer, etc.

2. Start with automated sequences

Well, using automated sequences can be boon to your insurance firm. You might sell insurance policies with offers like free health checkup, vehicle towing or cash backs, but in the hustle of life, the client may forget this offer or are unaware of the same. More so, if you want to keep your clients reminded by the premium dates or important updates or notify about settled claims or send a standard automated response, then you can set sequence that automatically triggers in client's mailbox on the date you want.

Insurance companies play a critical role in the lives of consumers as they chose an insurance company after thinking a lot. That's the reason you should be proficient in responding them quickly; this is what they expect. Automated responders, SMS or push notifications, make your clients feel that you are there to listen to them all the time. An automated sequence is the best sales funnel to be in touch with your customers.

3. Cross-selling and up-selling emails

In the insurance industry, cross-sell, and up-sell of products is very crucial, and marketing automation makes it simpler. For instance, you offer countless products starting from pet insurance, car, and household insurance and you already have a well-established client base that has purchased policies from you. Therefore, it is possible that your clients may open your message promoting additional product offerings as they have trust in you.

In this phase, you can fully optimize behavioral data to comprehend clients who glanced particular websites, shared relevant content online, clicked on links from your previous emails or shown concern in your products but didn't convert. With the help of these useful insights, you establish a sales funnel to fascinate the customers from browsing to purchasing your products. You can run sequences that explore top auto challenges, benefits of insurance, or a special one-time offer.

Bottom line

However, it is clear that marketing automation is serving the changing insurance needs, but there's no one-stop approach for each organization. Every insurance firm has its unique goals, needs, and scope. To understand what is better for your company, a customized automation evaluation can be of great benefit.

Guest Author

Mika Edword is the content marketing head at Cogneesol - a business outsourcing company specializes in assisting insurance startups and established businesses with the best and cost-effective insurance outsourcing solution. She has been working with Cogneesol for the past 10 years and loves to write about insurance back-office services and the latest trends in the insurance industry.