If you’re like most carriers, your customer acquisition costs are increasing. Even before the policy is issued, you’ve likely spent a lot of time and money. Executive Summary In the second article of a series dedicated to each of four different segments of the enterprise insurance processes, Wade Bontrager of EagleEye Analytics discusses using predictive analytics when onboarding new customers—to identify cross-sell opportunities, streamline the application process and set prices correctly. In the first installment, Wade talked about prospecting for new customers. Future articles will cover managing customers and managing claims.
According to a recent McKinsey report (“Beyond Price: The Rise of Customer Centric Marketing in Insurance“) over the past 10 years, marketing spend by U.S. personal lines insurers rose from $1.7 billion to $5.9 billion. While every carrier isn’t putting ads on major television networks, carriers increasingly require sophisticated levels of marketing and technology just to acquire a new customer.
This is true whether you distribute through independent agents or use direct channels.
(Second Of A Series)
This puts a lot more pressure on carriers to know that they are targeting the right prospects and acquiring the right customers. We all know that the right customers are those who are going to be the most loyal and produce the most profits over time. But how do you identify them?