Acxiom’s Proprietary Survey on Auto Insurance Pinpoints Prime Opportunities for Reaching and Retaining Customers
18 May 2010 - 3:00AM
Business Wire
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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