Modern technologies have brought the promotion of products and services to a qualitatively new level. Different customers tend to have specific expectations for the insurance business. Insurance marketing applies various techniques to increase the number of customers and to assure targeted marketing strategies. In this regard, customer segmentation proves to be a key method.
The algorithms perform customers’ segmentation according to their financial sophistication, age, location, etc. Thus, all the customers are classified into groups by spotting coincidences in their attitude, preferences, behavior, or personal information. This grouping allows developing attitude and solutions especially relevant for the particular customers.
As a result, target cross-selling policies may be developed and personal services may be tailored for each particular segment.
