LITTLE ROCK, Ark.--(BUSINESS WIRE)-- Auto insurers confounded by shifting purchase patterns can better understand the mindset of consumers - and adjust marketing plans accordingly - with today's release of the first Insurance Consumer Dynamics study by Acxiom® Corporation (Nasdaq: ACXM), a global leader in interactive marketing services.

The eye-of-the-consumer analysis reveals which consumer segments are more likely to maintain policies with their current insurer and which are actively looking for change to fulfill their auto insurance needs.

As the auto insurance industry navigates through this challenging economy, consumers are instrumental in driving change, creating a new model for insurers, said Holly Marr, Acxiom vice president, insurance practice. Using proprietary segmentation-modeling, Acxiom offers insurers a new and timely approach to segment and group consumers, creating a competitive market advantage.

Acxiom's proprietary research was conducted to help auto insurers confront a number of critical issues:

• Changing shopping and buying patterns of auto insurance consumers
• Increased customer churn of certain customer segments
• Evolving customer preferences related to desired value propositions
• Commoditization of auto insurance

Acxiom's Insurance Consumer Dynamics study was designed to help insurers find solutions to these challenges and to identify key consumer segments for new and existing customers. The study identifies which segments of consumers are looking for a new value proposition, which are shopping online for new alternatives and which have the greatest potential for direct or agent led insurers.

Acxiom analyzed auto insurance consumer-behavior traits and general motivations, which resulted in the identification of eight differentiated consumer segments: Price Isn't Primary, Solid Suburbans, Full House, The Nest is Empty, Country Middles, Stretched Singles, Hands Full and Getting By.


The study groups each segment into three categories to indicate likely purchasing behavior:

Staying the Course represents the status quo. These consumers value the agent relationship, are the most economically stable, have the highest income and are least likely to shop around. This group comprises Price Isn't Primary, Solid Suburbans and Full House consumer segments.

Open to Options consumers believe price is important but is not the only consideration. They have the most adults and vehicles per household. They are economically stable in the mid-range of incomes. They are willing to consider a good value but are not desperate to change. This group is made up of The Nest is Empty and Country Middles consumer segments.

Cutting Corners is looking for ways to save. Household members share vehicles and are actively engaged in price shopping. They rank at the bottom of the scale in economic stability. Consumer segments include Stretched Singles, Hands Full and Getting By.

For auto insurers, the implications of the study are significant, said Marr. With nearly every insurer facing constrained marketing budgets, effectively reaching offer-receptive consumers is more critical now than ever. The consumer segmentation and analysis contained in this study helps guide strategies for reaching the right consumer with the right offer via the right channel.

Acxiom's study finds a consumer-centric approach can help a variety of auto insurers in several ways:

• Captive and direct insurers can more accurately target specific groups of consumers who are less active in the marketplace yet open to change (Open to Options consumers).
• Member-based firms can deliver timely communications to consumer households recognized as actively shopping (consumers who are Cutting Corners).
• Direct insurers can study the characteristics of consumers who prefer the agent model and target them with appropriate offers, emphasizing reliability and service (Staying the Course consumers).

The study reveals why Staying the Course consumers generally view price as less important and are likely to generate higher premium dollars because they favor more coverage, drive more vehicles and have more licensed drivers per household. Compared with other groups, they tend not to favor direct carriers.

Insurers servicing these customers should protect their base through contact with an agent or member organization and provide a strong service offering with attractive multiple-item coverage, said Marr. Marketing communications that point out the benefits of their full-coverage policies will resonate with this group.

Open to Options consumers are an attractive prospecting target, according to the study. This price-conscious group primarily comprises households with multiple drivers and vehicles. They use the Internet to gather information and aren't afraid to shop around for good deals.

It's important to note the motivation behind their price-driven tendencies, said Marr. They like to feel like they've made smart choices, whether or not cost was actually the deciding factor. Insurers who service Open to Options consumers also need to know these individuals have the potential to be long-term customers if they are treated well and if the insurer can foster a sense of trust.

Acxiom's research found those who are Cutting Corners tend to look for insurance carriers who specialize in basic coverage. The fact that they're relatively easy to attract needs to be balanced with the reality that they're probably just as inclined to leave should an even better offer present itself, said Marr. Insurers who would fare best with Cutting Corners consumers are those who approach the business aggressively, keep a tight control on expenses and use volume as a counter-balance to the lower margins these customers provide.


The findings of the Insurance Consumer Dynamics Study were developed by analyzing 70 lifestyle segments across the United States using Acxiom® PersonicX® market segmentation system. PersonicX determined the demographic characteristics and the motivating behaviors that cause consumers to act.

When it comes to the future of auto insurance, consumers are clearly in the driver's seat, said Marr. Through their intentions and actions, consumers are creating a blueprint for insurers on how to structure the ever-evolving agent and/or direct model. The hallmark of that model is the need for value propositions tailored to individual customer preferences.

To download a free copy of the Insurance Consumer Dynamics study, email inscondyn@acxiom.com, go to www.acxiom.com/insuranceconsumerdynamics or call +1 888.3ACXIOM (888.322.9466).

About Acxiom

A global leader in interactive marketing services, Acxiom helps clients connect with their customers through deep consumer insight that enables effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration, and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Founded in 1969, Acxiom is headquartered in Little Rock, Ark., and serves clients around the world from locations in the United States, Europe, and Asia-Pacific. For more information about Acxiom, visit www.acxiom.com.

Acxiom and PersonicX are registered trademarks of Acxiom Corporation.

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Acxiom Corporate Communications

Carol Cassil, APR, 501-252-8854

Carol.Cassil@acxiom.com

GACXM



Source: Acxiom Corporation