Insurance Marketing Analytics to Get More Purchase-Ready Leads

Oleksandr Rohovnin
Data-Driven Copywriter
13 minute read
Oleksandr Rohovnin
Data-Driven Copywriter
13 minute read

As increasingly more insurance professionals adopt tech solutions for running their businesses, you cannot stand aside. You need a solution to get an edge in the competition: an insurance marketing analytics system that helps collect and interpret customer data into actionable insights.

For example, by using predictive insurance marketing analytics, you can model catastrophe events for property insurance or build algorithms for rating auto insurance drivers. Data science is absolutely crucial for calculating risks and gaining insights into critical business decisions.

“You’re already seeing initial use cases of data analytics and predictive capabilities start to surface. Attribution gets stronger, and predicting outcomes becomes more methodical than they were in the past.”– Oliver Koukoulis-Fribbens, Global Chief Sales Officer at Phonexa

Another example: Physicians, healthcare institutions, and carriers use analytics to predict the likelihood of specific health conditions developing in their patients, including cardiac problems, diabetes, or cardiovascular disease (CVD), and then they can set the appropriate prices for their services and insurance policies.

Read on to learn how digital marketing for insurance agencies and solutions like insurance marketing analytics can help you acquire quality leads at scale while ensuring the best experience for your customers and clients.

Insurance Marketing Analytics in a Nutshell

Insurance companies continuously analyze big data, from historical patterns to geolocation, to manage risks and provide cost-effective coverage to their clients. Among other things, insurers predict what coverage should be offered to a specific policy seeker and how much it should cost so they can make a profit and satisfy the client.

The competition between insurance carriers, in fact, boils down to who uses more advantageous marketing analytics software. Those who can collect more data, analyze it faster, and more precisely, usually generate more leads and sales. So, whether you sell or buy web or call leads, you need a robust insurance marketing analytics tech stack.

Read also: Why Insurance Companies Need Call Analytics

It’s no secret that carriers have long been using advanced tech stacks allowing for cost-effective lead acquisition. Not only do they use analytics strategically, but they also use it in real-time, evaluating the lead before making a purchase. And if the lead fails internal qualification criteria, they simply decline it, not wasting a cent on the customer who is unlikely to convert.

The good news is that you don’t have to spend much money on insurance marketing analytics software. Phonexa offers a comprehensive lead and call tracking, distribution, and analytics software suite, comprising eight proprietary performance marketing solutions, at a single price.

Book a demo to learn how Phonexa can take your lead acquisition to the next level.

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How Many Insurance Companies Use Marketing Analytics?

The challenges that most insurance lead generators and advertisers face are not unique: staying ahead of the competition, generating high-intent insurance leads, building rapport, delivering exceptional customer experiences, and so on. Real-time and post-interaction analytics address many, if not all, of these challenges by providing insights into who your customers are and what they want.

Surprisingly enough, many carriers and traffic generators still overlook insurance analytics solutions. According to Deloitte research, the insurance industry is still on its way to maturity in data management and insurance analytics:

Data analytics maturity stages: Explorer, Adopter, and Pioneer

Source: Deloitte

As you can see, only 6% of insurance companies use advanced analytics that influence their decisions and encourage innovations. Most still have to step up their game, which also means you can get far ahead with a robust insurance marketing analytics software suite.

But there’s more to it.

Why You Need Insurance Marketing Analytics

Despite the growing population, not all types of insurance are doing equally well. For example, Deloitte’s assessment of U.S. life insurance statutory filings showed that the number of policies sold has decreased by 27% over the last 20 years. At the same time, the U.S. adult population has increased by 25% over the same period. In other words, there was a 42% decrease in the number of policies sold per capita.

What does it mean? Tougher competition, fewer leads, and a higher impact of data analytics. Your success will likely be determined by your ability to collect and analyze data, predict outcomes, and automate what can be automated. Cost-efficiency is the name of the game.

Top-5 Insurance Marketing Analytics Use Cases

Risk Assessment

To understand what leads you need to buy, how much these leads can bring you, and what’s the best follow-up for this or that policy seeker or policyholder, you need to collect as much client data as possible and interpret it correctly.

But it’s not only about new clients—you should also monitor your current policyholders to understand where the risks grow. For example, as customers grow old, their health insurance premiums grow as well because of the higher risks of insurance claims.

Here’s the data you can rely on to assess risks:

#1. Patient’s medical information Fitness trackers and other wearable devices can help healthcare professionals and insurance companies understand what medical conditions may affect their clients’ health and longevity.
#2. Financial stability and spending habits The use of predictive analytics in insurance, combined with the ability to track and analyze customer spending habits, helps predict customer behavior and lifestyle.
#3. Natural catastrophe event data Access to such data gives a better understanding of the areas and magnitudes of future events, such as flood vulnerability or hazard mapping.
#4. Data from internet-connected devices Devices such as smoke and heat detectors, intelligent leak detectors, or water usage monitors help to monitor insured properties holistically for risk and prevent incidents.

Risk analytics has much to do with categorizing, understanding, and managing risks.

Here are the four steps of quality insurance risk analysis:

  1. Determine risk exposures and financial factors that impact specific approaches to risk management
  2. Determine the reasons for critical exposures to possible losses
  3. Quantify risk and impact on experienced losses
  4. Recalibrate risk management strategies, structures of current insurance programs, and capital allocations

 

It’s not uncommon for insurance companies to partner with marketing data analytics companies to work through all required steps and delve deeply into specific areas where they may need assistance.

Lead Scoring

One of the most practical applications of analytics in insurance marketing is lead scoring—assigning a numerical value to a lead that reflects how close they are to buying a policy. Likewise, lead scoring helps insurance carriers differentiate between marketing-qualified leads and sales-qualified leads and ensure the best experiences for every customer across touchpoints.

➥ Lead scoring allows you to focus on high-intent customers while knowing exactly how much these customers are worth. Then you can buy leads confidently and scale your business without facing unnecessary risks. Every marketing step becomes data-driven.

Example: As an insurance provider, you assign numerical values to every essential information on your leads: age, gender, income, credit score, location, website activity, whether the quote was requested, etc. The marketing analytics software, one of the best examples of insurance marketing tools, tracks customer engagement and outcomes—such as conversion, bounce, and follow-up—and weights each factor based on its predictive value. Then you can score leads based on their conversion probability, from 0% to 100%, or 0 to 1.

Phonexa’s HitMetrix can uncover the customer journey to a granular level, giving you full visibility into engagement, clicks, and conversions across screens and elements:

 

Book a demo to learn how HitMetrix and other Phonexa products can help you acquire purchase-ready leads and ensure the best experience for them.

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Lead Distribution

Not only does real-time lead scoring allow insurance carriers to quantify the intent of a lead, but it also enables smart lead distribution. A system that unites lead analytics and lead distribution software can score leads in real-time and distribute them among sales departments and/or advertisers based on the overall score and specific details, such as location.

Example: To optimize your lead distribution with insurance marketing analytics insights, you can send the highest-score leads (90 and above) to your best-performing sales reps, distribute high-score leads (70 to 90) among the rest of the sales reps, resell leads who scored 30 to 50, and decline low-intent leads (less than 30).

Moreover, you can develop a complex lead distribution algorithm to factor in the peculiarities of your business model. For example, if department A only accepts insurance leads from New York, you can prioritize location over the lead score. And so on—with an advanced lead distribution and analytics software suite, you can customize lead routing however you want.

Predictive Modeling

Whether you’re going to scale, tap into an untapped market, or you want to make your campaign more cost-effective, you can use specific types of insurance marketing solutions, like predictive modeling software, to simulate your future campaigns without any risk.

Example: You can see how effective it would be to accept third-party leads from affiliate A versus affiliate B, whether it’s worth buying leads during off-peak hours, and literally any other marketing experiments you’re interested in. This gives you unimaginable freedom in lead generation and acquisition strategies: wherever your imagination goes, you can check the result.

 

Phonexa’s predictive modeling software unlocks previously inaccessible customer insights and provides full campaign control, replacing guesswork with data-driven marketing. Carriers, agencies, and individual agents can better understand when, where, and what leads they should focus on.

Lead Acquisition Efficiency

Lead acquisition efficiency—measured as Customer Acquisition Cost, or CAC—is one of the most important performance metrics. Knowing the profitability of every lead, campaign, and traffic source enables you to distribute your resources accordingly. In other words, you can double down on your most profitable lead acquisition campaigns and eliminate unprofitable ones.

Moreover, with insurance marketing analytics software, you can factor in how much it costs to acquire a new policyholder and their lifetime value. Likewise, you can analyze across major interaction points—buying a policy, submitting a claim, and renewing a policy—to see where your digital marketing insurance strategies are effective and what can be improved.

No less importantly, you can use customer analytics to align engagement with events in your clients’ lives and expectations. For instance, you can offer to extend coverage and include a spouse for just-married policyholders.

Here are the metrics to understand whether your leads and clients love what you offer:

Average Time to Coverage Customers are no strangers to long wait times when purchasing insurance policies. However, since consumers typically have little patience for lengthy periods between application, purchase, and coverage, it’s crucial to provide a product as quickly as possible. Otherwise, they will move on to one of your competitors.
Claim Processing Rate Customers generally look for a prompt and accurate resolution. For this reason, it is crucial to track the time it takes to process an insurance claim, from the initial notice of loss to the payout or denial. With claims analytics, you can detect specific anomalies and, as a result, improve performance.
Claim Denial Rate Compare your claim denial rate to the industry average. A significant difference will mean that you deny more claims than the average. As a result, your customers will be dissatisfied because their insurance doesn’t serve them as well as expected. However, remember that denying fewer claims than the average implies raising your costs and passing them on to consumers through higher premiums.
Referral Rate Referrals are the most accurate indicators of whether or not your clients are satisfied with your service and their experience. It’s crucial to track the number of effective referrals that result in conversions.

To What Extent Should You Use Insurance Marketing Analytics?

There are levels to this game. An insurance company that only analyzes half the available data in isolation gets fewer insights than a carrier that goes granular. Different maturity stages in data management and analytics imply different levels of return on your effort.

Based on Deloitte’s three-stage maturity model, let’s take a closer look at how you can get more value out of your insurance marketing analytics data:

Information about how insurers can use insurance marketing analytics to improve their business

Source: Deloitte

As you can see:

  • Explorers typically look to effectively assess risks and cut costs through improved claims analytics and fraud detection
  • Adopters tend to focus on customized products and market scoping, resulting in significant revenue growth, service enhancement, and expanded market share
  • Pioneers tend to sustain a competitive advantage by continually investing in the application of data science in the insurance industry, making insurance marketing analytics an integral part of their culture.

But you can start small:

  1. First of all, make sure you capture as much first-party data as possible. Tracking inbound leads will give you a wealth of insurance data that can be utilized to better understand your customer journeys and be the first building block for an optimized sales funnel.
  2. Next, determine the most important business metrics. Once these metrics are identified, you can utilize real-time insurance marketing analytics to route your customers, spot trends, and identify optimization opportunities.
  3. Finally, implement the required adjustments and see how well the reality matches the predictions. Continuously capture, analyze, and optimize to build long-term success strategies that reflect the current state of the market and consumer activity.

 

Insurance Marketing Analytics Software to Level the Playing Field

There are tons of advantages insurance marketing analytics brings to the table, but the most important thing is that it levels the playing field, making medium-sized and smaller insurance carriers capable of winning their market share. A decade ago, only the largest companies could afford to develop proprietary marketing analytics software; today, every small business can obtain a cloud-based analytics software solution for a few hundred dollars per month.

“You’ve got to do what works. Carry out the due diligence on your partners to make sure that you’re starting with a level playing field, and then track the journey from start to finish. Get used to putting yourself in those advertisers’ and – most importantly – consumers’ shoes in the funnel and use the analytics tools to deliver an experience that will encourage the outcomes you’re looking for.”– David Pickard, CEO at Phonexa

Department sizes, cost estimates, and other aspects vary across companies, but modern insurance marketing analytics software is flexible enough to accommodate all of that, and it’s industry-agnostic. If you’re an auto insurer, you can factor in ZIP codes, driving experience, history of accidents, etc.; if you’re a health insurance company, you can leverage analytics to provide more personalized medical services, earlier interventions, and lower hospital costs.

Last but not least, real-time marketing analytics software is the best solution to prevent low-quality, irrelevant, and fraudulent leads from entering your system. Getting the full lowdown on the lead before buying them sounds like a dream, but it’s possible with the right lead tracking and insurance marketing analytics software suite. Add lead distribution to it, and you’ll get a comprehensive marketing ecosystem that covers your insurance business from top to bottom.

Phonexa – an All-in-One Performance Marketing Ecosystem

When it comes to tracking, routing, and analyzing leads with one software solution, Phonexa has no competition. We have developed and synergized eight proprietary products to cover your marketing campaigns from top to bottom—from affiliate to referral to social media to on-site marketing—while giving you full control over the process.

 

Get Phonexa’s eight proprietary solutions at a single price (online price calculator):

LMS Sync Lead tracking & distribution software
Call Logic Call tracking & distribution software
E-Delivery Email & SMS marketing software
Cloud PBX Cloud phone system
Lynx Click tracking software
Opt-Intel Suppression list management software
HitMetrix User behavior recording & analytics software
Books360 Automated accounting software

Build your plan now, or take a product tour to see Phonexa in action.

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Frequently Asked Questions

What is insurance marketing analytics?

Insurance marketing analytics is gathering, assessing, and extracting essential insights from various data sources to successfully manage risks and provide the best healthcare, auto, life, property, and casualty insurance contracts, among others.

Why is insurance marketing analytics important?

Insurance companies typically rely on historical data to evaluate the probability of possible risks. The increasing use of data science in the insurance industry explains the gradual enhancement of carriers’ capabilities to collect insurance data across various touchpoints.

Insurance data providers, specifically designed insurance data and analytics solutions, assist industry experts in gaining the insights required to personalize their offerings, improve business operations, make data-backed predictions, and drive more value across the insurance value chain.

How can insurance marketing analytics help generate organic leads?

Lead analytics can tell what your ideal leads look like and where you can find people who fit that profile. Likewise, it can help define future actions throughout the lead generation process, including spotting new high-quality leads and marketing to them more effectively.

 
Got Questions?

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Oleksandr Rohovnin avatar
Oleksandr Rohovnin
Data-Driven Copywriter

Oleksandr Rohovnin is a Data-Driven Copywriter at Phonexa. His passion is digital marketing, innovative technologies, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At Phonexa, Oleksandr stokes passion for marketing automation and lead generation in every story he curates.


Education: Zaporizhzhya National Technical University

Expertise: Digital marketing, affiliate marketing, call tracking, lead tracking, insurance

Highlights:

  • 8+ years of writing and editing experience in B2B and B2C

  • Unconventional synergy of writing talent and technical knack

  • Avid proponent of sports, gaming, and reading

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