LSBM200 Digital Marketing Report: Online Insurance Sector Analysis

This report provides a comprehensive analysis of digital marketing strategies within the online insurance sector. It begins with an introduction to the topic, highlighting the growing importance of online insurance and the shift towards digitalization. The report then reviews the sector, outlining best practices for online insurance companies, such as partner coordination, data personalization, talent retention, customer-centric culture, IT integration, flexible approaches, and organizational transformation. A significant portion of the report focuses on a strategic approach, using AXA as a case study. It delves into specific digital marketing strategies implemented by AXA, including email marketing, social media marketing, and search engine marketing. The report provides detailed explanations of each strategy, their benefits, and how they are applied in the context of the insurance industry, with a focus on customer acquisition and retention. Finally, the report concludes with a summary of the key findings and recommendations for effective digital marketing in the online insurance sector.

DIGITAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTOR REVIEW..........................................................................................................................4
Best practices in online insurance sector.....................................................................................4
STRATEGIC APPROACH.............................................................................................................5
CONCLUSION................................................................................................................................9
Recommendations..........................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Online insurance is one of the most trending and important concept of the today's world.
With the rising use of mobile and internet most of the insurance companies are shifting their
performance of business to online mode. Along with the trend of digitalization the way of
working of the insurance companies has been changed. Now they are lying their more focus
towards providing online insurance to them (Vugec, Spremić and Bach, 2017). Along with the
trend of digitalization, the whole insurance sector start performing its activities on online
platform. This form of providing online insurance to people has changed the entire mode of
business in terms of direct interaction between the company and the customers. This has reduced
the role of mediator and bring more transparency in performance of business operation.
The current economic environment where the trend and use of digital technology has
been raised bring various opportunities as well as challenges for the insurance sector and the
companies that belong to this sector. With the involvement of digital technology in insurance
sector the business of insurance companies reached to next level. This digitalization has boost up
their business and sales. The reason behind such growth and boost is the raising and widening of
scope of operation. But in addition of bringing and raising opportunities, this has also brought
challenge in terms of investment of more cost over maintenance of cyber security and digital
security (Ostagar, 2018). Since while dealing with insurance companies customers share their
personal data which is needed to be secured by the companies so in order to implement cyber
security the cost of the company has raised.
Digital marketing is commonly and widely used in the insurance sector nowadays.
Digital marketing in the form of making advertisement over digital platform, official websites,
social media pages and various other has raised the business of insurance companies (Cappiello,
2020). Similarly, by availing the details about various policies over digital platform insurance
companies can make marketing of their business.
This report will study about the concept of digitalization and digital marketing along with
various practices of online insurance sector. A detailed strategic approach containing digital
marketing strategies are also being highlighted in the last section of this report.

SECTOR REVIEW
Best practices in online insurance sector
Since insurance is one of the important sector that safeguard the people from damage.
But along with changing trends, the mode of operating the business of insurance sector also got
evolved. It means in order to be in touch with customers, insurance companies also have to
implement required changes in their working operation. This digitalization not only help the
insurance companies and the entire sector to raise customer share and attraction but it also leads
to generation of revenue and sales for them. For that there are some best practices that can be
adopted by insurance sector to run their business online and digitally. These practices are:
Co-ordination and involvement of associated partners:
Since, insurance companies can't perform the entire functions. This means that it need
some support of its supplier so that the whole process is being performed. Thus, the very first
practice is to involve every partner along with digital sector so that the whole sector become
digitalised.
Personalization of data:
The data of the customers which is being collected before the online performance of
business is very different from the data that is being collected after involvement of digital
concept. So, in order to process and data maintenance, different skill and knowledge will be
required. This means the next practice involves personalization of data and making it according
to the customer interaction.
Attraction and retention:
As no work will be able to performed without efficient workforce so the next practice
involves attraction and retention of talented workforce within the insurance sector. As the mode
of business is changing so it requires new talent and knowledge (Toukabri and Ettis, 2021).
Thus, attracting talented personnel and retention is also important.
Implementation of customer centric culture:
For being adopting new concepts and mode of business it is very essential that the culture
of the company must be positive, innovative and customer centric. If the organisational culture is
not customer centric and supporter of innovation then no new concept would being able to
implemented.

Infuse IT in operation:
No online transaction and operation of the business is possible without the support of IT.
Thus, infusing IT into the working operation and business of the insurance sector will enable the
company to be digitalized and operate their work on online platform.
Implement flexible approach:
This is one of the important practice because as the mode of business and technological
trends are changing at a very fast pace. So no over planning and pre planning will be made
implemented. Thus, flexibility approach of the sector will enable it to bring and implement the
required changes in its working operation.
Transforming organization:
No mode of digitalization would being implemented in the company if the departments of
the company is not being transformed. This means for the implementation of any new concept
each and every department of the organization right from front to back end, policy purchase to
claims and settlement, cash to account every department need to be transformed (Utkin, 2017).
Thus, it is also an important practice of online insurance sector or being digitalized.
STRATEGIC APPROACH
AXA:
It is one of the famous and well-known company of UK which provides insurance to
customers. It deals in a variety of insurance services including car insurance, home insurance and
various other. Along with the trend of digitalization, it also adopts and implement various digital
marketing strategies in its workplace.
Email marketing:
It is one of the best and widely used digital marketing mode. As per this mode companies
used to interact with their customers. It is categorized under customer centric approach. AXA
also used and implement this mode of digital marketing in its business. Since, marketing is the
mode of communication by which companies can make interaction and communication with
their customers (Sahni, Wheeler and Chintagunta, 2018). So adoption of email marketing for
making promotion of product of companies is considered as best because this mode is one of the
personalized form of communication by which AXA and various other insurance companies can
make communication with their target customers. As AXA deals in various form of insurance

policies so for more making awareness about its products and policies it usually uses e-mail
marketing. This is considered as personalized because through this mode it can communicate
directly with its customers and make them aware regarding any undue payment or upcoming
policy details. Email marketing is also considered as best mode of digital marketing because
since it is a digital form so on the one hand it saves the time of the companies regarding creation
of awareness.
Likewise it also saves the cost of marketing. This mode helps the AXA to make
promotion of its products among the large mass within a short span of time. In addition, of that
through email marketing AXA can inform and communicate its customers about the introduction
of any new policy, information or changes in the existing policy, details about the policy in terms
of any discounts, and various other services.
As there are basic three form of emails that company can use and implement in their
work practice. The very first form of email consist of information email where general
information about the company's product and services is being shared with the customers (Singh,
Singh and Shriwastav, 2019). Under this email, details regarding the upcoming policies and
products are also being given to the customers. The second form of email consist of digital
newsletter. Under this form of email, companies send information and details on a regular basis
that may either be monthly and weekly. The last form of email consist of product update
whereby companies send information about the updates regarding its products. This mail creates
awareness among customers regarding any updates concerning the company. AXA generally use
almost all the form of email for executing its digital marketing through email.
As AXA wants to seek more customer acquisition along with high retention so marketing
through email will help the company in retaining its customers because it makes them feel
connected with the company. Also, it is to be noted that email marketing will help the AXA in
raising more customer acquisition because when experience of the existing customer will be
raised then it will work as word of mouth that will again connect more customers toward the
company. Being a successful provider of various policies, email marketing helps the company in
enabling dual benefits in the form of raising customer satisfaction along with sales percentage
(Hajarian and et.al., 2021).
Social media marketing:

It is also an important mode of digital marketing. This is considered as one of the most
trending concept of digital marketing. Since, in the world of globalization there is no single
individual which is not a user of social media. Thus, adoption and implementation of this mode
of marketing in the business of the companies helps them to raise their growth of business along
with raising the customer acquisition. However, it is to be noted that although social media is one
of the best mode of digital marketing but it is generally being used by the companies to create
information about new and existing policies (acobson, Gruzd and Hernández-García, 2020). This
means that no private information is being shared over this mode.
AXA can implement this social media concept of marketing by making and creating
pages over the social media applications including twitter, Facebook, Instagram and various
other. Since these applications are widely used among people so this will directly help it to get
attention of large number of customers towards it (Li, Larimo and Leonidou, 2021). It is also to
be noted that AXA by adopting this mode of advertisement can in addition of raising customer's
share, also have to invest very low cost. Since, advertisement is that element of every business
which requires a huge amount of money. But by adopting this mode of advertisement AXA can
perform the promotion of its product at very low cost. This indicates that this mode is very easily
accessible and non costly.
AXA also uses this mode of digital marketing in order to raise and provide information
among customers regarding the new and upcoming products and policies along with sharing
details regarding changes in the existing policies. This is included in the best medium of digital
marketing because it helps the company in attracting and joining more and more customers
towards. Social media being one of the trending concept of the current world and when it is used
as a mode of marketing then it boosts up the business of the companies. As the AXA wants to
improve customer acquisition rate so using of social media as a mode of marketing will help the
company in grabbing more customers towards it. Being a trendy concept it directly helps the
company in terms of boosting the business in the form of raising sales percentage and revenue
share.
In addition, of that, companies also need to spend a lot of cost for retaining its customers
but involvement of social media marketing by AXA will also help it to reduce and maintain the
level of cost of retention. This is because through social media marketing it can make direct
contact with its customers which directly leads to raising the customer retention rate with the

company (Duffett, 2017). Being possessing wider coverage and broad scope of social media will
also assist the AXA in terms of making popularity of its products along with building good
image in the market. Through the concept of social media, AXA will make the appearance of its
company wider and broader.
Search engine marketing:
It is also an important and widely used marketing technique of AXA. As per this
technique AXA publish its advertisement about the company and its product over the websites
and official pages. Whereby by clicking over that website it has to pay a specific amount to the
owner of website. It is called pay per click. This means adoption of this method is considered as
best form because on the one hand it benefits the owner of website by gaining particular payment
but at the same side company also got advantage in the form of raising awareness about its brand
and product (Terrance, Shrivastava and Kumari, 2017). In addition, of that this mode also allows
the company to know the details of current customer share. This is because AXA by using
specific software can enable that what are the those users who have visited the page. This
technique also guides the company about its performance. This means that through this mode it
can measure its success rate along with measuring the level of performance.
Likewise, it can also have an account of number of customers that has visited its
advertisement. This will also help it to know in measuring the success rate of its current
advertisement along with knowing customer's interest towards the company. As it want to raise
the customer's share so this mode help it to know that whether it is being succeeded or not by
determining the exact number of customers that is being interested towards the company's
product and services (Das, 2021). Along with enabling these benefit advertisement through this
mode also assist AXA to raise the visibility of the company among the customers. Since, this
mode avails the advertisement for the company and its products over the most popular websites
and pages so by publishing details about the current and upcoming policies AXA can easily
create awareness of its brand and its products. This mode also help it to acquire more customers
towards the company. As when people will visit the website and see the advertising of AXA then
it will automatically generate interest among them which will lead them to visit the details about
the product of the company. Thus, through this way customer's interest towards the company
will raise which will ultimately leads to raising their share and percentage.

It is to be noted that, as advertisement is being published over the popular website this
will automatically denote the authenticity of the product of the company which directly implies
in raising the retention rate of the customers towards the company. This is because as it is a
general phenomenon that when people will see the advertisement for the company over any
authentic and popular website then this will automatically build trust among them. This will help
the company in raising its customer share along with increasing retention rate of the company
(Zhang, Hill and Rothschild, 2018). Thus, using of this mode of advertisement by AXA will help
it to raise the attraction of customers towards the company along with increasing their retention
and association rate.
Thus, by adopting and implementing this digital marketing strategies AXA can easily raise the
customer acquisition rate along with retention rate. As this strategies bear low investment cost so
AXA's cost of marketing will also be saved. Likewise, through their wide and broad scope AXA
can within a few time make promotion of its business and its different policies and products.
CONCLUSION
From the above report it would be concluded that operating the business of the company
through the use of digital mode will help them to raise their business along with achievement of
their objectives. Digitalization of business will helps the companies in widening their scope and
mode of operation. Since, insurance sector is one of the most important sector that deals with
safeguarding the life of people so involvement of digital touch in the business of the insurance
sector will not only help in raising the growth but at the same time it will also help the customers
to get more associated and interacted with the companies. Since an appropriate implementation
of some best practices will help the insurance companies to implement the concept of
digitalization. Involvement of digitalization in the operation of the insurance sector will help it to
raise awareness among people regarding the importance of insurance in their life. Likewise, it is
also understood that digital marketing of strategies of the insurance companies will helps them to
raise their sales percentage. This is because digital marketing has much wider coverage in
comparison of any other form of marketing. Adoption of digital concept in the marketing of
insurance sector will lead to raise the business of this sector. From the last session of this report
it is summarized that implementation of digital marketing strategies in the working operation and

marketing activities of the insurance companies will help them to raise the acquisition of
customers along with raising the retention rate.
Thus, in short it can be concluded that along with changing trend of technological
advancement and digitalization, it is very essential that there should be an indulgent of digital
concept in the insurance sector will boost their business along with increasing sales and
generating revenue.
Recommendations
From the above report it would be recommended that:
Digital-transformation and digitalization of business will help the insurance sector in
achieving high growth and success. Thus, it would be recommended that along with changing
trends every company including AXA have to give more focus towards the implementation of
digital technology in their working operation. It is being recommended because this digital
marketing and digital touch will help the company in having more interaction with their
customers. Likewise, it is also being recommended that every company including AXA have to
execute different digital strategies in the form of using and infusing social media, email
marketing, search engine marketing and various other for marketing their policies and products.
Concept of digitalization is highly recommended because to meet the current trend and
level of competition as well as globalization trends, it is essential that every sector specially the
insurance sector have to adopt and execute the concept of digital technology in their business
operation. Since, in order to meet the current pace of life, it is very essential that insurance
companies have to implement strategies concerning digital-transformation so that they can meet
the customer's requirement and perform their daily business operations.

REFERENCES
Books and journals
Cappiello, A., 2020. The Digital (R) evolution of Insurance Business Models. American Journal
of Economics and Business Administration. 12(1). pp.1-13.
Das, S., 2021. Search engine optimization and marketing: A recipe for success in digital
marketing. CRC Press.
Duffett, R.G., 2017. Influence of social media marketing communications on young consumers’
attitudes. Young Consumers.
Hajarian, and et.al., 2021. A taxonomy of online marketing methods. In Strategic corporate
communication in the digital age. Emerald Publishing Limited.
Jacobson, J., Gruzd, A. and Hernández-García, Á., 2020. Social media marketing: Who is
watching the watchers?. Journal of Retailing and Consumer Services. 53.
Li, F., Larimo, J. and Leonidou, L.C., 2021. Social media marketing strategy: definition,
conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of
Marketing Science. 49(1). pp.51-70.
Ostagar, A.M., 2018. Impact of Technology and Innovation in Insurance Sector. International
Journal of Management, IT and Engineering. 8(12). pp.253-258.
Sahni, N.S., Wheeler, S.C. and Chintagunta, P., 2018. Personalization in email marketing: The
role of noninformative advertising content. Marketing Science. 37(2). pp.236-258.
Singh, G., Singh, H. and Shriwastav, S., 2019. Improving Email Marketing Campaign Success
Rate Using Personalization. In Advances in Analytics and Applications(pp. 77-83).
Springer, Singapore.
Terrance, A.R., Shrivastava, S. and Kumari, A., 2017. Importance of Search Engine Marketing
in the Digital World. In ICITKM (pp. 155-158).
Toukabri, M.T. and Ettis, S.A., 2021. The Acceptance and Behavior Towards E-
Insurance. International Journal of E-Business Research (IJEBR). 17(2). pp.24-39.
Vugec, D.S., Spremić, M. and Bach, M.P., 2017. IT governance adoption in banking and
insurance sector: Longitudinal case study of cobit use. International Journal for Quality
Research. 11(3).
Zhang, Q., Hill, S. and Rothschild, D., 2018, April. Post Purchase Search Engine Marketing.
In Companion Proceedings of the The Web Conference 2018 (pp. 663-670).
Online references
Utkin, A., 2017. Digital transformation: 8 best practices for insurers. [Online]. Available
through <https://www.propertycasualty360.com/2017/04/04/digital-transformation-8-
best-practices-for-insurers-2/?slreturn=20210216233718>
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