By improving speed to market, insurers can adapt to customer expectations faster. Erik Sandquist explains how a test-and-learn attitude can help insurers become more adaptable.
The pace of technological change is forcing traditional insurers to rethink the way they work, from the very foundation of their business and operating models, to how they market and reach customers. As insurers take steps to become more agile and flexible, marketing strategies—and social marketing strategies, in particular—are no exception. A recent report from Accenture Digital highlights the role that muscle memory plays in becoming more agile.
Build muscle memory to improve speed to market
Today’s customers expect personalized, tailored interactions with all their service providers. It’s an expectation that requires insurers to collect and interpret vast quantities of data—including social media—and dynamically respond to customers in real time.
How can insurers accomplish this? At a high level, they must have an overarching vision for social marketing and how it fits into marketing strategy as a whole. More pragmatically, they need to have a test-and-learn mindset. That is, they must develop the capabilities to test, learn and rapidly scale pilot programs—and to tune and customize subsequent campaigns to better align with business objectives.
Importantly, a test-and-learn mindset enables insurers to take small, calculated risks. This iterative approach, combined with the ability to synthesize and act on data in real time can help insurers develop the muscle memory required to react to changes more quickly and effectively.
Example: Danish insurer takes a chance on Snapchat
Consider Alka. The Danish insurer experimented with Snapchat, a channel that may seem an unusual choice for insurance marketing. Snapchat users tend to skew young—according to Business Insider, nearly half are 24 or younger—and are not typical purchasers of insurance. Further, at the time of the pilot, anything broadcast on Snapchat disappeared within 24 hours. (Snapchat has since launched its Memories function, which stores “snaps” as chosen by the user).
Alka’s campaign focused on lost or stolen items to highlight the importance of having insurance. Over three months, the campaign generated fewer than 1,000 leads; however, more than half interacted with the brand and Alka reported that it was “more efficient conversion than other direct marketing or social media efforts.” According to the Digiday article, Alka plans to continue using Snapchat—presumably testing, learning and iterating each time.
- Email me to discuss how Accenture can help insurers create and support a test-and-learn mindset.