All brokers know that getting to know your clients is simply a necessity in today’s competitive market. But what about the consumers that you can’t reach; those who seem impervious to your offerings and deals? Are you wasting your time targeting them?
In its recent Behavioural Segmentation Study, Economical asked 5,000 Canadians about what they look for when purchasing home, car or business coverage. “Five distinct profiles of insurance buyers emerged,” the survey reports. “Two of these consumer categories identify as valuing broker advice; the other three tend to favour self-sufficiency.”
“With this study, we were trying to understand preferences under certain condition – how consumers behave when given different options; their proclivity to choosing a broker and why, and their attitudes towards technology,” says Michael Shostak, Chief Marketing Officer at
Economical Insurance. “It captures likelihood for consumers to behave in a certain way.”
Segment 1. 28% of respondents: Value simplicity and believe in the benefits of brokers.
Segment 2. 19% of respondents: Value and trust broker advice.
Segment 3 14% of respondents: Want a quick purchase but not prepared to sacrifice price.
Segment 4 17% of respondents: Do not think they need a broker.
Segment 5 21% of respondents: Don’t see the value in a broker.
For consumers in segment one, price is not a top priority. They value simplicity, are risk averse and prefer to communicate over the phone. Those in segment two value options, comprehensive protection and strongly prefer in-person interaction. This group cares the least about price.
“Segments one and two tend to be more affluent, slightly older and slightly less urban. Segment one is looking for ease and convenience. They get overwhelmed with too many options, they like to keep things simple,” Shostak says. “Segment two want to take time to go through the options but they want someone to take them through the choices they have. Both groups tend to want someone to help them make choices, but in very different ways.”
