A Fortune 500 insurance company and one of the largest providers of insurance related products for individual homeowners.
The organization was experiencing its position in the market as a leading provider of insurance related products slip in comparison to its competitors. The marketing department was challenged with coming up with new ways to engage with customers and win their leading position back. They realized that one potential contributor to the problem was that they had not updated their customer segmentation model in over 5 years. They were currently only segmenting based on demographic data and not using the customer behavior and persona data they had available. Because of this they felt that they were not able to provide differentiated experiences to the customer micro-segments or consistent customer experiences across channels and geographies.
In an effort to regain their leading market position, the company engaged with Baker Tilly to develop an updated customer segmentation model that took all of their available customer data into consideration. The new analytics-based segmentation model would then be used as a foundation to market, engage and sell to each micro-segment of their customer base in different ways.
The Baker Tilly Analytics team used an advanced analytic approach to:
Providing unique visibility of customer needs, trends, and similarities, the new segmentation model is expected to serve as the foundation for follow on initiatives targeted to increase conversions, increase spend, maintain loyalty and reduce churn. Highlights of the before and after impact of the segmentation model:
Losing market share
Positioned to gain market share and an expected $3M annual sales revenue increase
Gut feeling customer treatment strategies
Consistent, repeatable customer treatment strategies based on data and insights on that data
Demographic data driven segmentation models
Behavioral and demographic data driven segmentation models
Inability to monitor customer behaviors over time
Ability to monitor customer behaviors over time and get ahead of emerging customer trends more quickly.
Inconsistent customer experiences across geographies, products, and sales territories
10 micro treatment strategies enable consistent forms of engagement with customers from each identified segment
Customer segmentation is not a onetime event. Customer segmentation models that include customer buying behavior data over time provide the foundation for increasing the overall customer life time value.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.