The Rise of Predictive Analytics in Online Marketing

The role of the digital marketing professional is ever-changing. New techniques and tools are developed at a steady rate, causing marketing strategies to shift to leverage these advances. One of the most exciting and powerful developments in recent years has been the concept of predictive analytics; in very simple terms, this concept involves looking at statistical data to predict trends. In online marketing for insurance agents, predictive analytics can unlock new opportunities, giving agencies the ability to reach new customers more efficiently than ever before.
 

What is Predictive Analytics?

Global analytics software provider SAS defines predictive analytics as:

“The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.”

The concept behind predictive analytics goes back many years, but it was only recently that computer processing power, efficient software interfaces, and data availability made it possible to implement the practice, which is gaining favor rapidly among online marketing professionals. The development of machine learning systems and “AI”, or artificial intelligence, has also significantly contributed to the growth and capability of predictive analytics. This innovative data analysis practice can be used across industries and at numerous points in the business chain, including marketing/advertising, product development, sales, and management.
 

The Role of Predictive Analytics in Digital Marketing

Online marketing for insurance agents requires unique approaches to identify and target potential insurance customers. Predictive analytics can made those approaches more efficient and more effective. To begin, marketers evaluate data on previous customer interactions and buying habits using specialized software algorithms. This data is collected at point of sale or customer service systems by insurance companies of every size and type. By better understanding those habits and preferences, predictive analytics can help anticipate trends – even before they emerge. These trends can include future buying habits, new market opportunities, or even demand for new products and services.
 

How Can Predictive Analytics Be Used in Insurance Marketing?

There are several areas where predictive analytics can be applied, giving insurance agents the information needed to more effectively reach target audiences. These areas include:

 
• Analyzing and predicting seasonal customer preferences – at different times of the year, demand for certain insurance products and services may exhibit greater interest among consumers. The tools for analyzing purchase and customer-interaction data allow marketers to highlight those products and services at the right times, keeping interest high among potential customers.
• Targeting products to the customers most likely to purchase them – the “shotgun” approach to digital marketing – scattering information across broad audiences in hopes of landing sales – is an expensive and inefficient practice. Instead, targeting specific audiences and tailoring product/service information to those most likely to make purchases is the cost-effective and efficient way forward. Predictive analytic tools make that possible.
• Creating effective marketing strategies – marketing begins with identifying target audiences, but the practice goes far beyond that. Using collected data, marketers can hone the message to meet the preferences and interests of those audiences. This can include themes, images, video content, and product details that resonate with specific audiences, making them more likely to make a purchase of a given insurance product or service.
• Improving Return on Investment (ROI) by encouraging repeat customers – marketers need to assess their practices to ensure the greatest ROI for any given marketing campaign. In the insurance industry, repeat customers are the key to maximizing profits. Predictive analytics can help build long-term business relationships with customers by identifying past interaction preferences and predicting future preferences.

 
Thanks to developments in computer technology and the increased availability of consumer data, predictive analytics represents an exciting new toolset for digital marketers. Effective online marketing for insurance agents requires spending resources wisely, and predictive analysis ensures that those resources are directed to the areas where profitability and customer satisfaction are all but guaranteed.

 

 

About Agency Tsunami

Agency Tsunami is the digital marketing division of Neilson Marketing Services, who has provided the insurance distribution sector with innovative marketing and communication solutions for over twenty-five years. With our Agency Tsunami program, we have implemented an integrated marketing strategy that includes optimized, professional websites supported by high-quality SEO and Social Media for hundreds of insurance retailers and wholesalers. Our goal is to help your insurance business perform and generate new opportunities. Give us a call at (800) 736-9741 to learn more about how we can do that for you.