How to Integrate Emerging Technology into Direct Mail Campaigns
Data and Audience
Measurement and Reporting
Identifying and targeting for additional products and services.
It can cost five times more to attract new account holders than it does to retain an existing one. Keeping your policyholders happy and in-house is more important than ever before — especially when it comes to dollars and cents. In fact, the probability of prospecting and selling to a new potential policyholder ranks between a paltry 5-20 percent, but the probability jumps considerably when cross-sellingiCross-Selling is the act of selling an additional product or service to an existing customer. Maybe you have a banking customer who has a checking account with your organization. It would make sense to also offer that same customer your mortgage services, especially if your data shows this customer is saving up to buy a home. This is a productive method used to increase bu... Read More enters the mix to current policyholders; insurers can count on 60-70 percent of in-house customers to be interested and sign up for new products or services. That sounds great, but there is a data science component behind this success.
A successful cross-sell program has to be part of an insurer’s marketing plan of attack, including aggressive growth and retention goals that are communicated, tracked and held accountable across the organization. But the missing part of the equation for insurers is how to capture the right opportunities. If they truly want to reap the cross-selling benefits in today’s competitive environment, marketers must go beyond the basic techniques they’ve relied on in the past and embrace data.
A critical first step to expanding cross-sell opportunities is to do exactly that — take things from step one. Only 3 percent of consumers think salespeople and marketers are trustworthy, so establishing trust and engagement with appropriate onboarding and education directed to every new customer is essential.
People may be unaware of additional policies and benefits, and some may not know what kind of coverage they need. Adopting an advisory strategy that positions additional products and services to help policyholders means customers will actually want additional product offerings. But without data, insurers will be playing a costly guessing game.
By successfully harnessing data to identify policyholder habits and propensities, insurers can strategize on proactive ways to engage those holders through cross-sell opportunities. Modern customer intelligence and data science allow insurers to go above and beyond traditional approaches focusing on product ownership and demographicsiA demographic is a piece of criteria that categorizes a person and can range from age, location and gender to income level or level of education. This information is used as an important marketing tool for brands and companies to determine how best to interact with the correct group of potentieal customers. For example, a bank targeting potential mortgage business would wa... Read More, but also establish a more holistic analysis to account for customer attitudes, perceptions, and behavior. An approach that uses sophisticated, analytics-driven cross-sell initiatives at the forefront of customer preservation and cross-sell efforts ultimately breeds policyholder lifetime value, brand loyalty, and retention for years to come.
But a successful, data-backed cross-sell program must develop strategies to determine the following three questions: who is most likely to respond, when they are most likely to respond, and what they are most likely to respond to?
1. Pinpoint the Right Policyholders — Segment and Identify Vulnerabilities
2. Crunch the Numbers — Catch Policyholders Who May Defect
3. Create the Best Cross-Sell Messaging — Act Quickly with Personalization
Cross-sell is at the core of building lasting relationships and growing policyholder profitability. By using data to determine each customer’s next-most-likely-product, event triggers to time offers, and audience segmentationiThe process of dividing a larger group into smaller subgroups (segments) according to a set of shared characteristics. In marketing segmentation examples of shared characteristics could be similar interests, habits, purchase patterns, geography, age, or other demographics. By focusing on smaller segments with like characteristics, you are able to tailor marketing messages ... Read More to match content creative channels with customer needs, any insurance marketer can greatly expand cross-sell relationships. The deeper the relationship, the less likely that policyholders will leave; the better the data, the greater the lifetime policyholder retention.