In my report, MarTech in Insurance, published two weeks ago, I noted how many MarTech capabilities already exist within insurance organizations outside of marketing. Since then, I’ve had a number of conversations with vendors and insurers that underscored that point. Here are some examples:
- Digital asset management in marketing means storing compliance-approved digital assets in such a way that they can be deployed as well as shared inside and outside the organization as marketers and agencies create campaigns. This is basically what customer communications management systems (CCM) do.
- A data management platform in marketing is a place where anonymous or known customer data is stored so that segments can be created and audiences targeted for mass or direct campaigns. But segment assignment, identity management, and data enrichment also happen in insurance CRMs.
- Mature marketing analytics platforms compute customer lifetime value, next best action, customer segmentation, and predictive response propensities. Insurance business intelligence systems are likely performing these analyses as well.
- Voice of customer and customer experience management tools are also capabilities that CX or enterprise feedback management teams are likely already deploying.
So why are insurers not leveraging the technology they already have in place and adapting it for marketing purposes? There seem to be at least three reasons: who owns these systems, what these systems are used for, and how secure they need to be.
Ownership: Marketing teams are often siloed within insurance organizations and, either through honest ignorance or institutional apathy, are simply not aware that some of these tools and capabilities exist. It may be easier and more expedient to deploy marketing budget for new tools rather than to jury-rig an existing or legacy solution. Marketers are constantly shown the shiniest new technology by vendors and can be tempted toward novel adoption.
Use Cases: Predictive analytics used by finance, underwriting, or claims teams requires specialized methods, data, and talent that marketers might not be familiar with. Even though the statistical software or programming language is the same, translating these engines over to marketing could be an intimidating prospect.
Security: Marketing databases often contain fully anonymous aggregate data, while a CRM used for underwriting, billing, or claims has much higher security requirements and restricted access. Digital asset management systems that store marketing materials such as brand logos or approved public copy or creative often have to be accessed by external media and advertising agencies and are therefore held to a lower level of privacy compliance risk.
Who is in the best position to bridge these divides, impose data governance, translate functions, muster talent, and avoid redundancies that cost the organization money? CIO and CTO teams are uniquely and naturally positioned to act as umpire, manager, and coordinator for these functions. As digital marketing requirements require more and more investment in technology, we can expect CIOs and CTOs to find themselves speaking more frequently with the CMO.
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