Multichannel segmentation in the after-sales stage in the insurance industry

Abstract

Purpose The purpose of this paper is to present a multichannel segmentation approach to identifying customer segments based on actual customer channel usage in the post-purchase phase in the health insurance industry. Design/methodology/approach A multinomial regression model and count regression models were estimated to describe the profiles of customer segments and the frequency of channel usage based on generations and sociodemographic variables. Findings This study identified generational differences in channel usage. Single female customers from the Pre-Boomer or Baby Boomer generation and customers living in states with lower incomes are more likely to use call centres. Website users tend to live in regions with higher per capita income. Multichannel users are, on average, more frequent users of both the website and call centres. In terms of sociodemographics, they display a more heterogeneous profile. Research limitations/implications The proposed segmentation needs to be enriched with additional variables such as customers’ health status or channel usage motivations. Practical implications Customers, who are male, married and from Generations Y and X, are more likely to use the website. Their propensity to switch to a digital channel could be investigated further to develop targeted migration strategies. Multichannel users are, on average, more frequent users of all channels. To avoid increased channel costs, segments should be analysed in terms of their size and profit potential to help allocate marketing investment more efficiently. Originality/value As opposed to existing research, the proposed segmentation approach is based on transactional data of channel usage from a real company, combined with analyses using generations and sociodemographic variables.

The key role played by intermediaries in the retail insurance distribution

“…Still, Li and Holeckova's (2005) study shows that website is used as a "price comparator," but the sale is made directly with intermediaries. A multichannel approach in the insurance sector represents an advantage (see Dalla Pozza, Oliveira Brochado, Texier and Najar, 2018). Moreover, analyzing the sale of an insurance product Dominique-Ferreira (2017) highlighted that price alongside bundling strategies and the input of salespeople influenced the distribution of insurance in Portugal.…”

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

“…However, the studies do not speak with one voice on the impact of gender, education level, income level, household size, openness to innovation, and impulsiveness on channel choice. It would be of benefit to the field for future research to empirically identify any sectors within which these factors have a significant influence on channel choice and may therefore help inform customer segmentation (Boardman and McCormick 2018 ; Dalla Pozza et al 2018 ; Sebald and Jacob 2020 ). In terms of customer location, the question remains as to whether global design or local adaptation of channel strategies is preferable in the light of differences in customer needs (Korgaonkar and Karson 2007 ; Lu et al 2018a ; Sebald and Jacob 2020 ).…”

“…The complete absence of studies from Africa or South America (apart from three studies from Egypt; Ali et al 2021 ; Hussein and Kais 2021 ; Mahrous and Hassan 2017 ) stands in sharp contrast to these figures. Research in emerging countries and comparison with developed markets would appear to constitute a pressing need in view of the rising prevalence of new technologies and channels in these areas (Dalla Pozza et al 2018 ; Mahrous and Hassan 2017 ). Several studies wish to see cross-cultural and transnational research done in this area (e.g.…”

Contextualizing the Universe of PSAK 74 [IFRS 17] in Indonesia and Insurance Industry Vigilance Through the Cosmology of “Yoga Kshema”

“…The magic of the cohorts will force the insurance firm to combine every insurance contract with a similar risk into one portfolio, and then each contract must be divided anew based on its underwriting year." The "cohorts" is unquestionably a significant advancement in accounting standards setting, coercing the insurance sector to transform into a new chapter of business (Dalla Pozza et al, 2018) policyholder may now track how much money he spends on his claims (GPPC, 2020;KPMG, 2020). The insurance company, on the other hand, can determine the contractual service margin or profit of each contract that remains after customer claims (EY, 2021;Smith & Smith, 2021).…”