A new, online-only entrant in the life insurance category needed to understand the market size and potential opportunity for its offering within the term life insurance market.
To attract new customers in a narrow channel, the company needed to define their ideal market, determine what high-opportunity segments exist, and identify which market segments would align with their business model.
A primary challenge was driven by the company’s online-only channel. With this in mind, three key areas were identified for a study:
- Understanding the current market and what it looks like in terms of:
– Current policyholders and those interested in coverage.
– Appetite for new or additional coverage.
– Sources of information.
– Most important consideration points.
- Market segments to consider as high opportunity, such as long-term or immediate.
- Underserved targets and understanding if those that were pre-determined were worth pursuing.
A three-step research program was designed to address the specific challenges for this offering.
Obtain a large, representative sampling of U.S.-based adults.
Market size projections were calculated from collected data and the U.S. Census, confirming a high degree of opportunity for the provider.
Identify high-opportunity segments within the market.
The most differentiating factors among the audience were determined. Using multiple segmentation techniques to identify the best solution, segments with the most opportunity were groups that either don’t have a policy, or have a policy, but are dissatisfied with their provider and prefer company apps for communicating with financial service providers.
This yielded several high-opportunity segments to target.
Provide recommendations regarding underserved client targets.
The underserved market segments of interest to the insurance provider were then sized and profiled.
To attract new customers in a narrow channel, the company needed to define their ideal market, determine what high-opportunity segments exist, and identify which market segments would align with their business model.”
The study revealed insights for brand positioning and messaging, including detailed sizing information to assist in targeting, products, and marketing strategy. As a result, the insurance provider gained a clear profile of top-growth segments and was able to target marketing and communication efforts more accurately. By highlighting relevant messaging, the life insurance provider has experienced increased inquiries and sales growth through their targeting efforts.
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