Right mix of bricks and clicks: What customers want today (1 of 3)Posted on April 06, 2010 by Michael Costonis
In this podcast, I discuss the results of the Accenture US Insurance Consumer Survey. The survey was designed to examine consumer preferences and behaviors in the insurance industry. Based on the survey results, I share recommendations for how insurers can use market segmentation—the right mix of bricks and clicks—to target the appropriate market and improve customer loyalty.
Rationale for the Accenture US Insurance Consumer Survey
Respondents to the Accenture US Insurance Consumer Survey represented a cross-section of the US population. Respondents were required to be at least 18 years old and own at least one insurance product.
Why was Accenture focused on consumer preferences at a time when the insurance industry was heavily focused on high-level, structural issues? While the high-level discussion is important, we felt it was equally critical to concentrate on the people who are actually purchasing insurance products. We wanted to find out the driving factors behind a purchase.
Specifically, we wanted to learn:
- What are consumer attitudes toward insurance companies?
- How do consumers want to purchase products?
- How do consumers want to interact with insurance companies?
Results of the Accenture US Consumer Insurance Survey
We have all heard doomsday predictions that the insurance agent is becoming obsolete. However, the survey results say otherwise. The agent is still the dominant distribution channel, though a growing demographic is very interested in purchasing insurance products online. This market segment represents a significant growth opportunity for insurers.
Market segmentation is key
With two distinct demographics—those who purchase insurance through an agent and those who prefer to buy online—it is clear that insurers must customize products and distribution channels to the specific target market. Further, insurers must re-assess their approach as a customer’s needs change.
By using market segmentation to continually engage customers with appropriate products, through appropriate channels, insurers can improve customer loyalty and retention and achieve high performance.
Read more in the rest of this series:
- Who is buying insurance through an agent and who prefers to use the internet? Find out in Right Mix of Bricks and Clicks: What Customers Want Today (2 of 3)
- How can insurers use the survey results to increase their market share? Find out in Right Mix of Bricks and Clicks: What Customers Want Today (3 of 3).