Insurance Marketing to Goldfish
A goldfish has an attention span of 8 seconds. That is why they are content to keep swimming around and around in their little bowls. By the time they complete a few laps they have forgotten what they have already seen. The couch, chair and picture on the wall look brand new 10,800 times each day.
Consumers receive over 30,000 messages a day. These messages are received via TV, social media, email, radio, print, direct mail, digital display, point of sale and word of mouth. Multiple screen usage is on the rise. Adults spend nearly 9 hours a day on devices, which is longer than they spend asleep. Experts predict that in the next 10 years, there will be 10 devices per person, including phone, tablets, laptops and wearables. This year, there are 10 billion devices in use. By 2020, this number is expected to increase to 50 billion devices.
With the number of messages sent to consumers a day, plus the number of methods to receive the messages, it is no surprise that our attention span has decreased to 8 seconds. That is a short amount of time any marketer has to capture the consumer’s attention, much less keep them interested. The way consumers interact with their screens has changed the way goods and services are purchased. Latest reports indicate that 65% of consumers are researching their purchases online more this year than in the past. In fact, over 80% of consumers consult their phones while in store. This number of people who consult their device increases to over 90% at any point during the purchase cycle.
These statistics apply to insurance just as much as any other product purchase. Amazon and Google have dramatically changed the way consumers approach the process. Since these two companies, and countless others, market products to an individual based on prior purchases, consumers expect this type of personalization all of the time. Shoppers want companies to understand who they are and what products are best suited for them.
Big Data helps companies offer goods and services to consumers before they even know they want or need to purchase. Knowing the habits of your customers increases brand loyalty. This improves response, conversion and persistency over time. Utilizing Big Data for predictive analysis can improve ROI in marketing campaigns, online and offline.
With the right resources, Big Data can help with customer management, product innovation and distribution. Knowing what the consumer is most likely to want or need, and how they want to interact during the sale is essential to thriving in today’s consumer centric marketplace. Over 80% of a customer’s journey is self directed, and the majority of consumers expect that journey to be personalized for them.
However, Big Data does not solve all marketing challenges. It is important to note that less than 5% of all Big Data collected is actually accessible. With all of the data points captured, there are a few roadblocks to utilizing all of the data, or even the most critical elements.
- Not all data is reliable. Consumers often provide information based on what is socially acceptable, not their true behaviors or feelings.
- Companies, including insurance carriers, do not have the means to capture and effectively incorporate the data into their databases. This includes creating definitions and parameters for the data, so it is consistent across all facets of the organization.
- Resources are needed to make the data collected actionable. Without capabilities to turn data into insights and then into offers, the Big Data is almost worthless.
Instant gratification is expected, whether that consists of same day shipping/delivery or an online application process. Technology and digital media have turned us all into goldfish. We have short attention spans and expect more from any company who courts us to be customers. If we don’t see what we want in 8 seconds or less, there is always another message coming right at us.