Insurance agencies and companies are now utilizing big data to enhance user or customer experience. Both small and large insurance firms are now eyeing the potential of how big data will influence the digital marketing tempo now and in the future.
The insurance industry has its blueprint set on big data which allows agencies to make calculated risks and well-informed decisions as to who they would approve for insurance based on different factors such as industry type, business size, location, funding or capital, and other determinants.
Insurers have this dogmatic yet precise calculation of data that enables solid risk analysis but poor use of vital information to enhance user experience. This is where the big players seem to have loose ends in terms of connecting with their audience. So, if you happen to look at websites of giants in the insurance industry, you would notice static sites, with less audience segmentation and no A/B tests implemented. This is where startups or small insurance firms have taken the initiative.
How Small Insurance Firms Use Analytics to Gain that Edge Against Big Players
The smaller players or startups are using technology, big data, and analytics as leverage against the bigwigs in the industry. Technology or the use of data analytics levels the playing field for everyone in the insurance industry. There is no big or small when it comes to executing successful marketing campaign strategies that work like a gem.
At hindsight, the giant firms appear to be huge in marketing because they are able to hire celebrities and popular media personalities for commercials in promotion of specialty insurance policies. In addition, they also do have a relatively large market and data share as compared to small insurance agencies but there are advantages to being small after all.
Small insurance firms are agile and quick to adapt to the market trends. They basically know how to bend without breaking. They focus more on technology and using that edge to build relationships and strengthen connections with their customers which is the bottomline of a customer-centric brand after all. In short, small insurance firms are more responsive and flexibile to the changing needs of their customer base which is an instant edge against competition.
Analytics, Digital Marketing, and the Insurance Industry
The entire framework of the insurance industry is designed for analytics. In essence, statisticians in the insurance sector use analytic models to predict the lifespan and risk factors of clients using precise metrics. This is where they make important business decisions in insurance approvals or denials.
In the same way, digital marketing eats and breathes analytics. You are basically testing for search engine marketing, email marketing, affiliate marketing, display advertising and other campaigns. Everything is bound to be measurable and quantifiable. This is how insurance agency capitalizes on big data using email maketing and multivariate testing.
Data is used to innovate or make big changes in the insurance landscape. Insurance agencies are basically middlemen that provide varied insurance options to individuals and business owners which provide agencies incredible access to data.
Using Data Analytics for Email Marketing and Multivariate Testing
In the insurance business, the test-and-learn marketing model is put to test. There are a lot of different marketing campaigns to test in order to find out what strategy works to enable businesses to scale up. Basically, a team of creatives, analysts, and developers collaborate to design marketing campaigns then test and track it, while developers focus on building fast and responsive websites.
Email marketing is no doubt a very robust and innovative lead generation tool. Multivariate testing also enables marketers to gather accurate insights and improve results that optimize email campaigns and boost coversions for your business.
The A/B Split Testing makes use of an empirical approach in determining click-through or conversion rates for websites, email campaigns, banners, and landing pages. There are basically two versions created in an email marketing campaigns to determine which of the two is more effective depending on results.
The A/B Split test works when two emails are created identical except for one variable like for instance a subject line or any other modification like a keyword change in one email. Insurance marketing agencies will now have the ability to measure the efficiency of the email campaign based on the click-through rates and open rates of the multivariate test which would help identify the successful email campaign version.
With multivariate tests, different or multiple insurance agency email marketing campaigns are tested at the same time and not just limited to two as in the case of the A/B Split test. This allows insurance agencies to generate credible results using different test samples. More so, this allows insurance marketing agents to measure and refine their email marketing strategies to drive more leads.
David Robson is the founder of Complus Alliance. He has been writing about different topics for almost 10 years. He’s main focus is delivering quality insights to a wide array of audience.