The problem

Insurance companies spend a large part of their budget on marketing, creating campaigns, retaining existing customers as well as attracting new ones. However, to achieve the above at the lowest possible cost and with more precise targeting, a key requirement is to identify the various customer profiles, through understanding their behavioral characteristics, demographics, creditworthiness, consistency etc.

The purpose

Customer segmentation i.e the process of. dividing customers into groups based on common characteristics such as demographics or behaviors.

The solution

With the use of machine learning and artificial intelligence models that rely on historical customer data, a more meaningful and precise categorization of customers can be carried out, based on correlations and patterns that traditional techniques ignore.

The benefit

Segmenting the company’s customer base and analyzing the performance of these groupings can improve marketing strategies, sales and customer service efforts. Customer segmentation enables the insurance company to identify patterns in the acquisition of customers as well as patterns of engagement in different segments.