Digital insurance distribution channels like online marketplaces and comparison websites are becoming more popular each day. To capitalize on this opportunity, insurers are forming strategic partnerships with other companies. This is beneficial to some extent. However, it is important for insurers to measure the success of these partnerships in order to determine they are achieving their goals.
In this article, we will discuss four key points insurers can use to measure the success of digital insurance partnerships.
Reach and visibility are factors that insurers must always take into account throughout the course of partnership. These can be measured through metrics such as website traffic, social media engagement, and the number of leads generated through the partnership. Insurers can use these pieces of information to determine if the partnership is effectively reaching the target audience and if the partnership is driving brand awareness.
Another important metric to measure the success of digital insurance partnerships is conversion rates. This includes the number of potential policyholders that move from being aware of the partnership to becoming a customer. This can be measured through metrics such as the number of policies sold, the number of leads converted into customers, and the overall return on investment of the partnership. Insurers can use these metrics to determine if the partnership is effectively converting potential policyholders into customers.
Like any other venture, measuring customer satisfaction is also an important aspect to determine whether a digital insurance partnership is successful or not. Insurers can look into metrics such as customer retention rates, net promoter scores, and customer feedback. Metrics like these can provide insights into how customers feel about the overall service they receive as a result of the partnership.
In addition to measuring the customers’ satisfaction, it’s also important to gauge the satisfaction of the partners. A number of metrics can be used to measure this, including the retention rates of partners, the feedback they provide, and the number of partnerships that are renewed. Insurers can use this data to determine if the partnership is meeting the needs of the partners and if they are likely to continue or renew the partnership.
Once the success of the digital insurance partnerships is measured using the metrics discussed earlier, insurers can already determine the strong and weak points of their partnerships. With the data collected, they can identify areas where the partnership is not meeting goals and making adjustments as needed.
For example, if the partnership is not effectively reaching the target audience, insurers can adjust the marketing strategies. If the partnership is not effectively converting potential policyholders into customers, insurers can adjust the sales process. By using data to optimize partnerships, insurers can ensure that the partnerships are achieving their goals and are profitable.
References:
McKinsey & Company. (n.d.). Measuring the Success of Digital Distribution Channels in Insurance. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/measuring-the-success-of-digital-distribution-channels-in-insurance