What is hyper-personalization and why is it such a big deal?
In the insurance field, hyper-personalization refers to the act of tailoring insurance plans or services to the specific and unique needs of individual customers.
Lighter versions of hyper-personalization have already been tested and proven popular.
For example, according to V12data, consumers with bundled insurance plans are 46% more likely to “definitely” renew their insurance plan vs. 28% of non-bundled customers.
Further, 42% of customers are willing to purchase plans bundled according to age.
This suggests consumers are happier with plans that are more tailored to their needs.
Plans that are based on consumers’ healthy or safe-driving habits are also an example of personalization, and they prove similarly popular.
Still, according to 21% of consumers, their insurance providers don’t offer personalized products at all.
It’s not because consumers are unwilling to part with their valuable personal information to access more personalized plans.
Indeed, it’s data insurance companies are already rife with.
Now, it can be better utilized to make insurers more money.
Research from Accenture has shown that 78% of customers are willing to share more personal information with insurers if it means their experience will be personalized while 82% are willing if it means their coverage will be better tailored to their needs.
Of those considering changing insurers, 72% said hyper-personalized services factored into their decision.
If insurers can answer the demand for hyper-personalization they have the opportunity to offer a better product that consumers are increasingly demanding.
Three Benefits of Hyper-Personalization
1. Better Market (More) Products
More information about consumers allows us to more appropriately market them products and services they both need and want.
This does not only need to be in the form of insurance products.
This can also encompass tailored message about how to drive safer, or live healthier lives.
It can also include tailored pricing and support.
Of course, it can also be insurance products that we might not know consumers need without increased knowledge about their lives.
More than half of surveyed insurance customers say that individualized marketing urged them to purchase products or services they otherwise wouldn’t have.
2. Put That Data to Use!
Insurers wield a large amount of data and if strives in technology and marketing have taught us anything, it’s that data is money.
You already have command of an amount of data that can make you a lot more money if applied properly.
Now use it!
Personalization is crucial; yet many companies are not implementing the technology to make better personalization possible.
According to the research, consumers are willing to trade even more data about themselves if it results in products that are better tailored to their needs.
Insurers are sitting on a ton of data they can instead be utilizing to net them higher profits.
3. Meet Unmet Demand
Offering hyper-personalized plans is how some insurers plan to stand out in an increasingly competitive field.
It’s also what the consumers are demanding.
This means that offering hyper-personalized plans is a way to set you apart from other insurers while being at the forefront of the hottest new trend.
Insurers are spending good money to better understand their customers’ behavior across devices.
Make sure you’re one of them.
Are you interested in learning how to hyper-personalize your data so that it gives your customers more of the type of products they desire?
Insurance Advocates is an exceptional resource, offering insurance agents and financial planners the type of personalized insurance packages that can provide customers with the individualized plans they crave.