If you’re an auto insurance marketer looking to lure new policyholders to your brand right now, your job has never been harder. Particularly during a time when consumers are driving less and auto insurers are offering credits, refunds and more, auto companies must be able to go beyond flat demographics when targeting their prospective customers. By speaking to policyholders’ values, motivations and purchase drivers, auto insurance marketers can make more-informed decisions about the messages and offers most likely to entice drivers to switch to their brands.
Resonate recently tapped into its Ignite consumer intelligence platform to analyze the current attitudes and behaviors of policyholders at Allstate, Geico and State Farm, particularly as they relate to today’s unique pandemic-driven climate. What we found was a unique set of customer characteristics that should guide not only those brands as they seek to retain their clients, but also their competitors as they seek to attract new customers. Among these characteristics, our data shows that these individuals are:
- 75 percent more likely than the average American consumer to say price is a primary purchase driver
- 36 percent more likely to look for continuing education courses
- 22 percent more likely to utilize a mobile app
- 20 percent more likely to consider the availability of local agents
- 18 percent more likely to look for knowledgeable agents
- 17 percent more likely to switch insurance providers after a bad customer service experience
In addition, our analysis found that 63 percent of these auto policyholders look for products that are dependable and cost-effective, and 75 percent say that price is their primary purchase driver. These policyholders’ daily decisions are primarily driven by their personal values of duty, security and safety.
So, what drives them to choose one insurer over another when looking for auto insurance? Our analysis found that this group wants a personal experience with an agent who knows the auto insurance industry like the back of their hand. They’ll take advantage of local services and education; however, the flexibility of an app and online access is also important, particularly in these times of social distancing.
We also know priorities will continue to evolve in the wake of the COVID-19 pandemic. So how should auto insurers evolve in the coming months? Their response could determine which policyholders they retain, which customers they gain—and which customers will drive off into the sunset.
Readiness to reopen
According to Resonate’s real-time data on consumers and the impact of coronavirus, this group of auto policyholders is 27 percent more likely than the average American consumer to be in a rush for businesses to reopen in the wake of the pandemic. However, in line with this group’s emphasis on duty as a personal value, 98 percent are practicing social distancing to a moderate or large extent.
What does that mean for their driving habits? Nearly 70 percent say their likelihood of driving to another city in the next 90 days has decreased, and 52 percent are quarantining at home to a large extent. That means they’re probably not on the road frequently.
So, what does this mean for auto insurance marketers? In the early months of the pandemic, insurance companies across the country offered credits and refunds to customers. According to Resonate’s analysis, Allstate, Geico and State Farm policyholders are 44 percent more likely than the average American consumer to consider switching insurance within the next three months and 18 percent more likely to consider switching within the next year. Because policyholders are driving less, they are (quite literally) in the drivers’ seat as insurers look to retain their business. For these three insurers, in particular, the stakes are high, given that they offer multiple types of coverage, including home and rental. Losing an auto policyholder might represent the loss of additional policies as well.
While some insurers have begun to roll back their auto credits as the months wear on, it could be beneficial to explore extending these discounts—even if on a more limited scale—given that 52 percent of this group cites “best price” as the primary influence on purchasing decisions.
Moving forward into a new normal where drivers may stay closer to home, competition for auto policyholders could increase as insurance companies continue to offer premium cuts, credits and refunds to retain consumers. But it’s not all about slashing prices.
This is a group driven by security and safety. They want a great customer experience, and they’re more likely to take advantage of continuing education and access to knowledgeable local agents both online and in-person. And 44 percent of this group disagrees that they would buy only the minimum required. While cost is important, a positive overall experience that drives home a sense of dependability will go the distance to win over those looking to switch and to retain those already with a company.
