Establishing the Trust Again

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In the face of declining contact, response and conversion rates for the collection of insurance premiums in Southeast Asia, a prominent global insurance company consulted PulseMetrics to drive its lead and demand generation processes for its telemarketing campaigns using advanced analytics. Premium collection is a hefty task, incurring infrastructure, manpower and delay costs and implicating agent-customer relationships. As such, this project was also launched with the objective of improving agent-customer relationships through smarter data management. For insurance agents to be more effective and sensitive when reaching out to customers, it was necessary to determine exactly which customers are more likely to respond and to comprehensively understand their needs and wants.

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Gearing Up to Get to Know Customers

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Consequently, our consultants sought to understand the demographics, behaviour and psychographics of customers. We developed comprehensive segmentation models (demographic, i.e. gender, age, marital status, life stage, kids, education, region, wealth; behaviour, i.e. average spend per month, number of credit card transactions, number of active months; psychographic, i.e. affinity, concern for health, sporty and adventurous) to pinpoint which segment performed better in responding, paying their insurance premiums, and persisting. 

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For the next step, we designed predictive heuristic and propensity models for personal accident, cancer protection and home content insurance policies that assimilated several of the aforementioned attributes. As such, it was possible to determine which customers have the highest response rate according to their demographic profile, spending habits and lifestyle preferences. To name an example, customers who are wealthier, have a higher average spend per month and are married with a new family are most likely to respond. Our client was therefore able to filter and select leads that are have a higher response and retention rates from customer segments that are most profitable.

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Reconnecting Insurance Agents with Customers

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Within five months of implementing the validated models, the insurance company saw an increase in response and retention rate from month to month, showing that the customers were responding well to the offers and persisting more with higher matched purchases. Through advanced analytics, our client could select the most optimal leads for each insurance product and tailor-make the product features appropriately for each lead. Based on behavioural and psychographic scores, our client could also customise the marketing messages during the telemarketing outreach, thereby successfully hacking the customer journey in activation and retention.