Digital touchpoints and multichannel segmentation approach in the life insurance industry

Abstract

PurposeDigital technology is revolutionizing insurance distribution allowing the insurer companies to reach customers via multichannel. The aim of this study is to segment potential customers of life insurance based on their information search, purchasing channels and personal characteristics in the digital environment.Design/methodology/approachThe study uses cross-sectional research survey. In total, 422 questionnaires were collected through a convenience sample of the Romanian population. The data was segmented based on consumer information touchpoints (online vs offline), purchase channel preference (offline by a professional vs online by a standardized platform) and personal characteristics (age, marital status and children).FindingsThe channel segmentation analysis revealed that information channel preferences are the most important clustering variables, followed by purchase channel preferences, marital status, having children and age. Four distinct segments were identified: young fully offliners (23.7%), mature fully offliners (31.5%), committed online searchers (23.2%) and cross-channel onliners (21.6%).Practical implicationsInsurance companies should adapt their communication and distribution strategy based on multichannel segmentation and should focus on digital touchpoints with costumers.Originality/valueFirstly, the paper reveals multichannel and hybrid segmentation for life insurance. Secondly, it extends the already studied retail channels with search engines and companies' websites. Thirdly, it extends the behavioural variables for channel segmentation with technology acceptance behaviour, attitude towards life insurance, knowledge about life insurance, attitude towards personal selling and quality appraisal of online information sources.

Factors of customers’ channel choice in an omnichannel environment: a systematic literature review

“…Similarly, Alt et al ( 2021 ) found an inverse U-shaped relationship between age and choice of digital channels for very complex products such as life insurance. This can be explained by the lack of financial literacy and the resulting need for information among the youngest insurance customers and the lack of experience with digital channels and the resulting perception of channel risks by the oldest customers (Alt et al 2021 ). These findings lend further support to the argument that customer characteristics influence channel choice only indirectly due to the diversity of needs, perceptions, situations, and contexts that characterize the approach of individual customers to a channel.…”

“…Very young customers, however – children aged 6 to 12 years – may view online channels critically and prefer offline channels for shopping (Boulay et al 2014 ); this may be due to the greater importance of other needs, such as enjoyment-seeking, among this group, or to varying perceptions of channel attributes (for example, children may find physical stores easier to navigate than online channels), or to situational aspects which inhibit the use of certain channels, such as a lack of access to online payment options. Similarly, Alt et al ( 2021 ) found an inverse U-shaped relationship between age and choice of digital channels for very complex products such as life insurance. This can be explained by the lack of financial literacy and the resulting need for information among the youngest insurance customers and the lack of experience with digital channels and the resulting perception of channel risks by the oldest customers (Alt et al 2021 ).…”

Predictors of continuance intention of online food delivery services: gender as moderator

“…Firstly, perceived ease of use can be defined as “the degree to which a person believes that using a technology will be effortless” (Castillo and Bigne, 2021, p. 879). By specifically focusing on the impact of ease of technology, and in particular mobile apps and services, on the customers' behaviours and intention, literature has widely investigated this connection in different sectors (Alt et al. , 2021; Bhatt, 2022; Mew and Millan, 2021; Shim et al.…”

Clusters of Skeptical Consumers Based on Technology and AI Acceptance, Perception of Social Media Information and Celebrity Trend Setter

“…Starting from education and information research, where AI's goal is to improve teacher effectiveness and student engagement [11], to healthcare, where the potential of AI to offer medical diagnosis in areas such as radiology, its importance was highlighted by many specialists [12]. At the same time it has applications for several fields such as mobility [13], insurance companies [14] or the energy sector [15]. The future development of AI promises to allow humans to focus on design and integration activities, while AI will assist these activities, offering significant efficiencies while controlling and monitoring processes in real time [16].…”