28 Insurance Marketing Statistics You Need to Know in 2020

Derek Andersen Copywriter, DialogTech

Most insurance consumers start their journey by finding and comparing providers online, often through searches. Insurance purchases are highly personal and have many considerations — how much coverage do you want, are you adding family members to your plan, are you bundling multiple kinds of insurance? As with most complex, expensive, or personal purchases, insurance consumers turn to the call channel.

To acquire more policyholders in 2020, insurance marketers are optimizing SEO and digital ads to drive more high-quality calls. And, to increase phone conversions, they’re personalizing the caller experience.

The Insurance Consumer Journey Begins Online — Often with a Search

1. 69% of insurance consumers ran a search before making a purchase. For many insurance shoppers, search is the first step to assess their options (Source: LSA).

2. Over 50% of insurance searches are performed on mobile devices. In our mobile-first world, many insurance searches are run on smartphones, which makes calling an agent more seamless than ever before (Source: Blue Corona).

3. Mobile queries that contain “insurance near me” have grown by over 100% in the past two years. More than ever, insurance shoppers are placing local searches and researching agents in their area (Source: Google).

4.68% of insurance consumers did not have one company in mind when they started searching. This presents an opportunity to convert these undecided searchers with search ads (Source: LSA).

5. $867 is the average amount insurance consumers spent after a search. Each undecided searcher is a major revenue opportunity — without a strong search marketing strategy, you’ll leave dollars on the table (Source: LSA).

Insurance Marketers Are Investing More in Digital Ads to Acquire Customers

6. Insurance keywords are among the most expensive in Google Ads and Bing Ads and some can cost $50 or more per click. Insurance customers have high lifetime values and, as a result, paid search competition is fierce (Source: WordStream).

7. The average conversion rate for an insurance search ad is 5.10%. For an insurance display network ad, it’s 1.19%. Despite the comparatively high cost of insurance ads, their conversion rates are consistent with most other industries (Source: WebFX).

Most Insurance Consumers Convert by Calling

8. 78% of insurance consumers call a business after running a search. Since insurance is a complex purchase, the next step after a search is often a call to an agent to put together a plan (Source: LSA).

9. 74% of consumers research insurance purchases online, but only 25% end up making a purchase online. Though most insurance consumers start their journey with a search, they prefer to speak to a live agent to make a purchase (Source: J.D. Power).

10. Only 24% of small and medium businesses purchased their commercial insurance online. SMBs also prefer to speak to an agent to make insurance purchases (Source: PwC).

11. Insurance shoppers are most likely to call during the purchase phase of their journey. Though calls are important throughout the multitouch insurance journey, they are most common when consumers are making a purchase (Source: Google).

Percent of insurance shoppers who call during each phase of the customer journey

12. Auto insurance shoppers are the most likely to speak to an agent during their purchase journey, followed by home insurance, and health insurance consumers. The more complex the purchase, the more likely insurance consumers are to speak to a live agent (Sources: J.D. Power, xAd, xAd, LL Global, S&P Global).

Percent of insurance consumers who purchased offline from a call center or agent

13. 62% of insurance buyers said talking with a rep on the phone was the most influential factor in their decision. Speaking with an agent is often the moment of truth for insurance purchases — delivering a frictionless call experience is critical (Source: xAd).

14. Almost 75% of customers who attempted to purchase insurance online reported problems. Though many insurance providers offer online purchase options, consumers often have difficulty navigating them and getting the help they need (Source: Accenture).

There Is Huge Revenue Potential in Optimizing Your Marketing to Drive More Sales Calls

15. Calls will influence $1 trillion in US consumer spending this year. In our mobile-first world, calls are often the most convenient way for customers to convert (Source: BIA/Kelsey).

16. Phone calls convert to 10-15x more revenue than web leads. Calls are the most valuable conversions insurance marketers can drive. By tracking calls driven by your digital ads, you can measure your full ROI and optimize accordingly (Source: BIA/Kelsey).

17. Callers convert 30% faster than web leads. Calls provide a more immediate return on your marketing investment (Source: Forrester).

18. Caller retention rate is 28% higher than web lead retention rate. Driving calls from insurance marketing campaigns is also more profitable in the long-term — callers are more loyal than web leads (Source: Forrester).

Insurance Marketers Are Personalizing the Caller Experience to Boost Conversions and Revenue

19. 3 minutes and 24 seconds is the average time consumers wait on hold when calling insurance providers. Across the industry, consumers often have to wait to speak to a live agent and make a purchase. If you can lower this hold time, you’ll gain a competitive advantage (Source: Talkdesk).

20. 1 minute and 30 seconds is the average wait time after which most callers will hang up. Many insurance callers have to wait longer than the average hang-up time to speak to a live agent. This results in lost sales and frustrated customers (Source: AT&T).

21. 88% of insurance customers demand more personalization from providers. Expectations for the customer experience have never been higher — to acquire new customers, insurance marketers need to meet them. This includes delivering personalized call experiences (Source: Accenture).

22. 21% of insurance customers say that providers do not tailor their customer experiences at all. Most insurance shoppers are failing to meet their consumers’ demands for personalization (Source: Accenture).

23. In the past five years, US auto insurance carriers that have provided customers with consistently best-in-class experiences have generated two to four times more growth in new business and 30% higher profitability than firms with an inconsistent customer focus. There is a direct link between enhancing the customer experience and increasing profitability (Source: McKinsey).

24. Satisfied customers are 80% more likely to renew their policies than unsatisfied customers. Enhancing the customer experience doesn’t only help with customer acquisition — it’s an effective customer retention strategy as well (Source: McKinsey).

Failing to Deliver a Frictionless Experience — Online and Over the Phone — Results in Lost Revenue

25. Less than one-third (29%) of insurance customers are satisfied with their current providers. Most insurance consumers are dissatisfied with their providers — often due to a poor customer experience. This puts them at risk of churning (Source: Accenture).

26. 32% of consumers say phone calls are the most frustrating customer service channel. Simply fielding inbound phone calls isn’t enough for marketers — it’s important to have data on each caller so you can quickly and efficiently address their needs (Source: Aspect).

Most frustrating customer service channel according to US internet users

Source: Aspect

27. 65% of consumers have cut ties with a brand over a single poor customer service experience. If you fail to provide frictionless caller experiences, it will cost you customers (Source: Digiday).

28. Customer churn because of declining loyalty and poor customer experiences represents as much as $470 billion Life and Property & Casualty premiums globally. Insurance marketers are neglecting the customer experience and it’s having a direct impact on their revenue (Source: Accenture).

So What Can Insurance Marketers Do to Drive More Call Conversions?

  • Make it easy for consumers to call you. This includes using call extensions on Google ads and making “call now” an action on web pages.
  • Track calls from marketing source to conversion. This will help you understand the quality of the calls your marketing sources are driving and allocate spend accordingly.
  • Use call analytics to personalize the caller experience. To convert callers, it’s important to provide a frictionless, personalized experience that makes them feel valued and known.
  • Capture the questions callers are asking on calls and address them in your online content to improve SEO and boost conversions.
  • Analyze conversations to measure what percentage of calls aren’t being answered at each location, if long on-hold times result in high call abandon rates, if the caller was a good lead, if they converted, and which agents or locations are best (and worst) at converting callers to policyholders. You can then make the appropriate adjustments to your marketing and coach your agents if necessary.
  • Integrate call data with your CRM and advertising tools. In turn, you’ll gain a holistic view of the consumer journey and allocate your budget more effectively.
  • Target past callers and lookalikes with the right ads based on their conversations. Your callers provide a wealth of targeting data you can use to more effectively acquire new customers and retarget qualified callers based on whether or not they converted.
  • Optimize, analyze, repeat. Once you start generating more calls, it’s important to continually test and scale your processes, while correcting issues that hurt your ROI.

To learn more insurance marketing statistics, download our infographic, The Impact of Calls from Search on Insurance Marketing.

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