“I wanted to go into insurance because my background is Stats… and I also know it’s a very personal job. There’s a lot of interaction with people… I also heard it has a great reputation for learning a lot about life and… culture,” Peter Allen, insurance broker at RKH, told JobsiteTV.
It might not be for everyone, but those deep in the trenches know it’s one of the most lucrative, passionate industries around. For Allen, feeling that he’s a part of the insurance industry makes him very happy.
If you were a broker recruiter, you’d look for people like Allen, who love wearing suits, sitting in nice offices and interacting with people. You wouldn’t look for the solitary artist that needs to be out in the water all day. Insurance isn’t for everyone.
Similarly, if you’re an insurance marketer, you know that your specific product suite or brand isn’t for everyone either and that if you try to target everyone with your online ads, you’re going to end up losing a lot of money.
Bidding the Same on Every Lead Type Leaves Too Much Money on the Table
Online advertising is expensive for the insurance industry. Marketers often pay $50-200 per click and $1,200-1,500 per client. If you target everyone, you’re bound to generate low-quality leads or low lifetime value clients, which means you’re bound to lose a lot of money.
What if you could spend less on leads that convert into $6,000/year and more on leads that convert into $24,000/year?
What if you could bid more on clicks that end up in the highest lifetime spend, and less on clients that disappear after a year or two?
How would your bottom line – and your management’s perception of your expertise – change?
Here at Predictivebid, we have the artificial intelligence based technology to give you that type of control over your bidding spends, but to make the most of this technology, you need a deep understanding of your target audience.
3 Insurance Companies Who Identified Their Most Valuable Audience
Let’s check out 3 companies who have figured it out, and then expand further on how it helps them get better bottom line results.
State Farm Insurance Targets the Everyday Person Who Works Hard for Everyday Achievements that Often Go Unrecognized
Cuteness. That’s what comes to mind when you see this State Farm commercial.
As the humor continues through some of its commercials, you might think State Farm is going to the strategy lots of insurance companies use to overcome their boring image in the public’s eye – make the public laugh.
And they get attention this way, no doubt, but if you look a little closer, you’ll see that State Farm often talks about a very specific type of customer. As HubSpot puts it, “their ability to take an everyday person and make him iconic has helped State Farm triumph in a very competitive marketplace.”
That everyday person cares about everyday things, like the latest funny insight of her kid, a new piece of furniture, or this truck:
In these commercials, State Farm basically says it sees you. It’s not some giant corporation that will ignore you when things get tough.
It sees how hard you’ve worked for everything you’ve accomplished, it knows how much it has cost you emotionally, and it knows how heart-wrenching it can be to have this supposedly ordinary achievement taken away, even if your loss doesn’t seem like a big deal from the outside.
Geico Insurance Targets the Digital-Loving, Self Fulfilling Person that Wants to Save Big and Live Largely
But it didn’t get there by chance.
According to Forbes, Geico targets the new generation of consumers, those that “need products and services that fit into their lives, with the price/value equations they are looking for, communicated in authentic, genuine and consistent ways.”
These consumers – which Geiko makes an effort to represent across its commercials – are developing exciting careers, and leaving plenty of time for living a full life of hobbies and pampering. Even those of them that choose to start a family keep it cool and go after their dreams.
No wonder Geico was the first to provide them with “the ability to quote and buy a policy from mobile-friendly pages” or that it became “the premier sponsor for the pilot of Amazon Studios… series,” according to Forbes. The ideal Geico customer has either spent at least part of her childhood online or has heavily adopted the digital world in adulthood.
Thai Life Insurance Targets a Person with Strong Ties to the Community and a Deep Sense of Gratitude and Responsibility for Her/His Aging Parents
For our third insurance example, let’s look at a whole other culture. After all, while every customer is different, the need to identify your ideal customers and their specific challenges are pretty universal.
According to the Stevie Awards Blog, as people in Thailand started living longer and the seniors’ age group increased, “many life insurance companies” started prioritizing sales to seniors, even though it meant creating “customized insurance products for them.”
But Thai Life realized their best target audience is elsewhere – it’s with working adults, who don’t have as much time as they’d like to spend with the seniors in their families, so they purchase life insurance for these seniors, especially their parents, as “a way for them to repay the kindness that their elderly parents had shown to them,” explains the Stevie Awards Blog.
Therefore, their commercials are either about the intense emotions that go on in practically every family, or about the power of taking care of your community.
At the end of the day, Thai Life Insurance’s target audience is that unsung hero whose greatest goal is to make sure everyone around him are well taken care of, no matter how hard it can sometimes be.
Insurance Companies that Identify Their Most Profitable Lead Types Get Higher ROI and Find it Easier to Design Profitable Conversion Paths
It’s possible that, for Thai Life Insurance, an average “working adult customer” would be more valuable than a “senior customer.” The “working adults” might buy a larger plan – to cover themselves, their parents and their own kids (if they have kids). These customers might be more valuable across a lifetime as well, as they potentially have many more years left to spend as insurance customers than the seniors do.
It doesn’t mean Thai Life Insurance ignores all senior customers, but it does mean they might be better off bidding less on senior leads than they do on “working adults,” as the return on the investment in “working adults” will be much higher.
Similarly, Geico might want to invest more heavily in a conversion path that leads to a direct mobile sale of a life insurance plan than in leads that call in to get more information. They might bid lower on phone leads than a company that targets non-techie seniors because their specific target audience is much more likely to convert to a higher extent with fewer – though preferably more digital – touch points.
To Follow in These Brands’ Footsteps, Start Analyzing Your Data Today
Figure out what type of customers buy the biggest plans, where do these customers come from and what characterizes them (age, gender, location, position, income, medical situation, marital status, etc). Then analyze those that have bought the most across a lifetime, including your greatest referrals.
If you do this preparation work, in a month from today, you could, like many of our clients, drive significant results to your bottom line and become the conversion hero of your company.