A majority of insurance CMOs—84 percent—believe that marketing will undergo fundamental change over the next five years
This is one of the findings of the 2014 Accenture Interactive CMO Insights survey, whose respondents included 38 life insurance CMOs and 49 property and casualty insurance CMOs from North and South America, Europe and the Pacific Rim. I want to spend the next three blogs exploring some of the major findings from this survey.
The first thing to note is that marketing and distribution are emerging as key arenas in which the digital transformation of insurance is taking place. As this transformation plays out, insurance CMOs predict that:
- Analytical skills will become a core competence.
- Digital budgets will account for more than 75 percent of the marketing budget.
- Mobile will account for more than 50 percent of the marketing budget.
Even more telling, some 74 percent of all insurance marketers and 87 percent of those who primarily focus on the business-to-consumer sector say it is essential or very important to deliver an effective customer experience
The growing importance of the marketing function within digital transformation should surprise none of us: it’s the direct result of the growing demands of consumers for a consistent omni-channel customer experience, one that is personalized to their lifestyles. If they don’t get what they want, critically, they are more prepared than ever to switch providers—creating a “switching economy” of personal-lines premiums in play that Accenture estimated was worth some $400 billion in 2013. (Download the Accenture 2013 Consumer-Driven Innovation Survey for an in-depth look at today’s insurance consumer.)
Clearly, a situation in which marketing leadership is expected and logical—but next week we will look into some disturbing data that suggests that CMOs themselves are suffering something of a crisis of confidence.