Today is all about increasing those bottom line numbers! Each month we have brought to you a key business problem in the insurance vertical and ways by which technology can help solve it. This month’s edition addresses wallet share in this competitive insurance landscape.

Let’s get some facts grounded before we get too far ahead of ourselves –

Wallet share refers to the percentage of a customer's total spending on insurance that goes to a particular carrier. Expanding wallet share means not only retaining customers but also deepening their engagement by selling multiple policies or services thereby building brand loyalty as well. This metric is pivotal because higher wallet share correlates strongly with improved customer loyalty and overall profitability.

While carriers recognize this they also face several hurdles in enhancing wallet share – yet, there are a couple improvement strategies that can be put in place.

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Ignoring the need to increase wallet share can lead to falling behind as competitors leverage better customer understanding and engagement strategies resulting in customer attrition. It also results in missed revenue opportunities as a result of overlooking potential earnings from existing customers.

More and more carriers are leveraging Insurtechs such as Satori to get ahead of their competition and create a differentiator in their ecosystem. Satori specifically helps carriers by providing deep insights into policyholder behavior, enabling precise targeting for cross-selling and up-selling. Our patent-pending models provide actionable information to enable enhanced customer engagement. According to marketing metrics, the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5-20%. This underscores the value of focusing on existing customers to increase wallet share.

Satori’s insights are rooted in defining behavioral profiles of the policyholder in order to conduct predictive modeling and identify what products they are most likely to purchase based on a combination of several signals. Epsilon research shows that 80% of consumers are more likely to make a purchase when brands offer personalized experiences. In the insurance sector, personalized product offerings and communications can significantly boost wallet share.

By embracing innovative approaches insurance carriers can significantly enhance their wallet share. Doing so not only drives revenue but also fortifies customer loyalty and competitive edge.