To cost-effectively gain new clients, insurance marketing strategies must adapt to the pressures of rising inflation that have impacted a number of industries, including restaurant, retail, and grocery for the past couple of years.
Cost increases in healthcare, home construction, and automotive repairs have driven personal insurance rates upward:
- Home insurance was up slightly 1.6% compared to 1.4% in April.
- During this same period, auto insurance inflation exceeded April levels, from 15.5% to 17%.
- Health has improved with negative inflation to -20.5% after -15.8% in April.
Overall Inflation + Personal Insurance Inflation
12 months ending May 2023
Source: Bureau of Labor Statistics, May 2023 CPI Report, June 2023
After two years of consistently outpacing wage growth, inflation slowed again in May to 4.0%, below wage growth of 6.1%. The inflation trend for health insurance is negative due to trends that developed in response to the pandemic. Early in the Covid-19 pandemic, health care usage decreased dramatically because consumers were not seeing doctors or visiting hospitals for elective procedures. That translated to higher profits since insurers were still collecting premiums.
After the economy reopened and consumers began using their insurance more often, aggregate profits shrank in 2021 relative to 2020, as insurers paid out more insurance benefits — resulting in negative inflation rates.
Create Preference to Acquire New Clients
Consumer discretionary spending is down as ritual household expenditures such as gas, utilities, and groceries face strong upward pressure. Consumers are trading brand preference and loyalty for greatest perceived value. Insurers that understand the new consumer value equation can create preference and steal share.
Reduce cost per acquisition with efficient targeting that identifies consumers most likely to do business with you.
Mspark provides insight into your specific target audience to help you make the best allocation of your advertising budget to develop a coordinated media strategy that drives results and ROI. We use data to create quality maps to assist our customers in visualizing where their best customers are located and identify how they can best reach them. This optimization helps you connect with the right consumers.
Coordinated Exposure Boosts Results
Engage those consumers with the most effective mix of print and digital advertising.
Did you know?
- 60% of consumers have visited a brand’s website after receiving direct mail.1
- Integrating digital tactics with direct mail increases program performance as much as 28% vs. direct mail alone2.
- 58% of rural consumers are influenced by mailbox-delivered print and digital channels when making purchase decisions3.
Engage Consumers Shopping for Insurance Due to Important Life Events
Life’s important events and milestones—marriage, children, divorce, buying a home or a car—often drive the need to purchase additional property and casualty or life insurance.
A data-driven marketing approach can help you identify and engage the right consumers when they are in the market for insurance and other financial services through impactful, coordinated, multi-channel communications.
- Get the most value for your advertising spend, with up to 15% more records in our data versus other data. With 18+ sources updated daily, our records are virtually 100% accurate.
- Reach prospects first, as much as 6 days sooner than your competitors.
When you reach consumers quickly, during key life events, with highly personalized messages that address their life event “triggers,” response rates can increase as much as 10x compared to traditionally timed campaigns.4
Triggered marketing campaigns can also strengthen relationships and build loyalty with your existing clients. Retain your valuable clients with personalized messaging that addresses their evolving needs.
- A 5% increase in customer retention produces more than a 25% increase in profit, as returning customers tend to buy more over time within the financial services space, according to Bain & Company reports.5
- Customer churn could be reduced as much as 11% if the business simply reached out to the customer, according to research studies.
Sources: SG3601; historical program performance2; Prosper Insights & Analytics MBI3; Speedeon4; Bain & Company5