S EGMENT CHARACTERISTICS

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segment the customers based on their needs, specifically their need regarding for communication.

As pictured above, the matrix is created with “Number of insurances” and “Contact frequency”

as the variables. The matrix consists of four different customer segments according to their involvement and contact frequency. In the following section, the premises of communication with each segment will be presented.

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Thus, they are anxious about exposing their lack of knowledge to a professional insurance agent, and hereby being judged as consequence (L. Eriksen, Personal interview, August 29, 2019). Consequently, they continuously pay for their insurances as they do not possess the knowledge to make a rational decision of whether they should switch insurance company or not.

As with all four segments identified, this segment would need attention from insurance companies in terms of communication that emphasise transparency, intentionality and authenticity, in order to build a long-term relationship based on trust, that ultimately leads to loyalty. That said, the communication towards this segment needs extra attention on

transparency and intentionality, rather than authenticity. Transparency prove to be especially important for the customers situated in this segment, due to their lack of knowledge and

confidence about insurances. Communicating in an easily understandable language, visualizing what is included in a specific insurance and making examples of everyday life situations that the young customers can relate to, can help improve transparency through communication.

Furthermore, intentionality is of great importance for this segment too. Rooted in their low level of understanding, they might feel vulnerable and insecure about the insurance company’s intentions. Hence, the company need to show that they are not interested in acting in an

opportunistic way and will not exploit a customer’s vulnerability. To do so, the insurance company can act proactively, rather than reactively, in their communication towards the

segment. Intentionality could also be demonstrated by offering them beneficial deals, instead of waiting until they find out about the deal. Lastly, authenticity should still be of importance to the insurance companies, as all three drivers affect trust and essentially the aim should be to reach the “Brand Trust Sweet Spot” by demonstrating all three drivers. However, authenticity is not as vital for this segment to begin with, as they need more transparency and good intentions shown to them, in order to be able to understand the promises made by the insurance

companies. Once they have learned to understand them, they can make an evaluation of whether the company deliver on its set promises.

The second segment represent the combination of a low number of insurances with a low level of contact. The customers who fall into this this category are characterized by having no home insurance or only two, or fewer, other insurances. They are in average in contact with their insurance company at a maximum of once a year. Those characteristics define the customers as;

having a lesser need to be insured than those who hold a high number of insurances. Their low frequency of contact with their insurance company indicate that they, to some degree, have a low level of understanding in regard to their own insurances as well as insurances in general.

Additionally, a low level of contact indicates an unwillingness to inform oneself about

insurances. Lastly, they do not feel comfortable being in contact with their insurance company, due to the fear of exposing their lack of knowledge and confidence about insurances. Given

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their low number of insurances and contact frequency, this segment would especially be in need of good intentions shown by the insurance company. Examples of good intentions the insurance company could express in regard to this segment are; that they are not judgemental about the segment’s low number of insurances, together with their lack of knowledge about insurances.

Furthermore, the company could benefit by showing that they are not interested in acting in an opportunistic way and will not exploit a customer’s vulnerability. To do so, they can act proactively by establishing contact with a given customer and, as an example, hear about their situation and needs. Moreover, they should consider guiding and informing the customer about insurance solutions that correspond to their needs, in an easily understandable manner in order to improve transparency. Transparency is of great importance for this segment as well, due to their lack of knowledge. Thus, the aim should be to communicate in a manner that correspond to the customer’s level of knowledge. Trying to create brand trust through the means of authenticity should be of the lowest priority in this segment, as they need more transparency and good intentions shown to them, in order to be able to understand the promises made by the insurance companies. Once transparency and intentionality are improved, the insurance

company can start focusing more on authenticity.

The third segment represent the combination of a high number of insurances with a high level of contact frequency. Their characteristics include that they at least hold a home insurance or three other insurances, and their average contact frequency with their insurance company is more than once a year. Those characteristics help define the customers as; in need of being insured and to some degree, have a good level of understanding in regard to their own insurances as well as insurances in general. Additionally, a high contact frequency shows a willingness to inform oneself about insurances. Given these characteristics, this segment could benefit from communication with the emphasis on authenticity, with the aim of building trust with this segment. As this segment already possess good level of understanding in regard to insurances and at the same time understand the importance of being insured, the most important thing for the insurance companies here is to deliver on its promises and stay true to their values.

Secondly, the communication towards this segment should emphasize intentionality. Due to their willingness to engage with their insurance company in combination with their high

number of insurances, all indicated through their characteristics, the insurance company should focus on showing good intentions towards them. By acting proactively, rather than reactively, in their communication towards the segment, is a good way of expressing intentionality. This could be demonstrated by offering them beneficial deals, instead of waiting until they find out about better deal. Additionally, the company should show that they are not interested in acting in an opportunistic way and will not exploit a customer’s vulnerability, in order to enhance intentionality. Despite not being the main focus for this segment, the insurance company should not neglect the importance of transparent communication. Even though the customers’ in the

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segment show good knowledge and involvement, is it always of great importance to make sure that the customers are able to understand and comprehend the information and messages sent by the insurance company, which correspond with earlier stated quote: “No customers would complain, if insurances were too easy to understand” (A. L. Erichsen, Personal interview, August 27, 2019).

The fourth segment is defined by having a combination of low number of insurances with high level of contact frequency. The customers represented in this segment is also characterized by having no home insurance or two or fewer insurances. Exemplified in their low number of insurances, they currently have a lesser need to be insured comparably to those with a high number of insurances or are covered elsewhere. Furthermore, they are on an average basis in contact with their insurance company more than once a year, displaying a high contact frequency and hereby willingness and interest in gathering knowledge about insurances.

Additionally, they appear to have no disregards of contacting the insurance company and being judged by them, as explained by their high level of contact frequency. Given these

characteristics, this segment could benefit from communication with the emphasis on brand intentions with the purpose of building trust with this segment. As the characteristics indicate, they are having a lesser need of insurances, but have a high level of contact to receive

additional information. Hereby, an emphasis could be focused on being proactive towards this segment and provide them with additional knowledge about other types of insurances, which would cover their actual needs and in general provide them with better offers to demonstrate good intentions. These improved efforts in showing the customers good intentions could hereby enhance trust as a result. Additionally, there should be an emphasis on transparency with this segment as well. Furthermore, this segment could benefit from receiving communication with an emphasis on authenticity, as a mean of building trust with this segment. As they exhibit a good level of understanding in regard to insurances, the importance hereof is for the insurance company to deliver on the expected value and stay true to its values. This is especially

important as young customers with high contact frequency are more aware of the promises made by the insurance company and hereby what they can expect. Hence, an emphasis on being authentic in the communication towards this segment is argued to be important as well as showing the right intentions.

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Figure 7: Overview of segment needs. Own creation