Research determines how insurance carriers can influence consumers to switch, or to stay
For more information, contact:
Jonathan Portis
Acxiom Corporate Communications
Jonathan.Portis@acxiom.com
501-252-0582
GACXM
LITTLE ROCK, Ark. – May 17, 2010 – With $40 billion
in auto insurance premiums up for grabs in the last year, Acxiom®
Corporation (Nasdaq: ACXM) has conducted a unique and proprietary survey
to provide precise insights for how insurance providers can determine
consumers’ potential needs, recognize shopping and carrier relationship
preferences and know how those consumers want to be approached with
offers, among many other findings.
“Acxiom’s first-ever survey for our latest Insurance Consumer Dynamics Study
dives deep into the needs and preferences of auto insurance consumers,”
said Holly Marr, Acxiom’s senior executive responsible for the insurance
industry. “This valuable information, never available before, tells
auto insurance marketers how to create strategic approaches for
attracting new customers and increasing loyalty by understanding their
needs and expectations.”
Acxiom worked with BIGresearch on a nationally projectable survey in
February about auto insurance customer views on auto insurance covering a
range of questions.
Insights from the study will help insurance marketers create
strategies for attracting prospects most likely to convert and growing
them into long-term profitable customers by:
- Identifying quality leads and improving conversion
- Finding best opportunities for customer growth
- Maximizing media usage
- Utilizing real-time insights for successful engagement
- Understanding channel and content preferences
“After we created our unique segmentation model
of auto insurance consumers last year, we knew that switching providers
was mainly about price,” Marr said. “Now, we can tell insurers how
customers feel about their providers, how a carrier can influence them
to switch, or how to keep and grow the business they have.” In total,
9.2 percent of those surveyed changed providers within the last year.
One in four current customers shopped for auto insurance within the last
12 months, and a third of those customers ended up changing providers.
When it comes to costs, the survey uncovered two definable
categories. Those who were willing to change providers to save money
were considered “More Likely to Shop” and represented 62 percent of the
respondents. The more than one-third who were likely to just renew were
considered “Less Likely to Shop.”
- “More Likely to Shop” were willing to switch for lower savings – 59
percent of more active shoppers would consider switching for annual
savings of less than $300. “Less Likely to Shop” consumers tended to
need an incentive greater than $300 before they would consider switching
providers.
- Customers willing to change for $300 or less in annual savings were
more likely to be younger and with their primary provider for a shorter
period of time.
But even when the insurance cost itself wasn’t a major factor,
consumers still wanted more information, particularly tips about car
maintenance and care that would help them save money and extend vehicle
life. And they were specific about how they wanted to receive the
information, whether through direct mail, email, phone calls, in person
or over the Internet.
“Cost savings may be an attention-getting promotional tool, but auto
insurance consumers consider other factors in their shopping process –
starting with the decision to even shop in the first place,” Marr said.
“Marketers who take a media mix optimization approach can create a
strategic advantage and achieve improved conversion at a lower cost per
acquired customer.”
Acxiom unveiled its unique segmentation model
of auto insurance consumers last year. This year, by filtering the
survey through these segmentation results, Acxiom uncovered insights
that can help insurance marketers find the most receptive segments. For
instance:
- Stretched Singles – This group of middle-aged
singles trying to make ends meet appear to be the most aggressive
shoppers of all the segments as well as being the most likely to have
changed providers.
- Price Isn’t Primary – Senior suburban couples who share a single vehicle are most likely to stick with their current provider.
- Full House – Families with three or more adults and
three or more vehicles and a range of incomes are more likely to have
shopped for insurance and changed providers.
For a copy of the study and to learn more about the methodology of the survey, visit www.acxiom.com/insurancecd2. For more information on Acxiom products and services, call 1-888-3ACXIOM or visit www.acxiom.com.
About Acxiom
Acxiom is a recognized leader in marketing technology and services
that enable marketers to successfully manage audiences, personalize
consumer experiences and create profitable customer relationships. Our
superior industry-focused, consultative approach combines consumer data
and analytics, databases, data integration and consulting solutions for
personalized, multichannel marketing strategies. Acxiom leverages over
40 years of experience of data management to deliver high-performance,
highly secure, reliable information management services. Founded in
1969, Acxiom is headquartered in Little Rock, Arkansas, USA, and serves
clients around the world from locations in the United States, Europe,
Asia-Pacific and the Middle East. For more information about Acxiom,
visit Acxiom.com.
Acxiom is a registered trademark of Acxiom Corporation.
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