DXPs and distribution: A better way for insurers to connect with buyers

Distribution is the start of every insurance journey and potential customer relationship. It's another way of describing sales and marketing and covers all the channels, activities, and content that promote business development and bring buyers and sellers together.

Even when insurers have compelling products and high-quality services, they still need to connect with buyers and have a convincing proposition to secure a sale. Effective distribution sets up the next stage in the insurance journey – the request for a quote – and if a buyer successfully applies for a policy, the insurer will gain a new customer. But without distribution to pave the way, there would be no new customers.

Thanks to digital technology, distribution is evolving, and there are new networks and routes to market. Because of rapid digitalization and changing customer expectations, insurers must adapt to retain their customer base and consolidate their role as industry leaders. If they don’t, insurtechs and other digital challengers will steal market share with more customer-centric business models. To stay relevant, insurers must use a digital experience platform (DXP) to attract buyers and make the right connections.

Digitalization has created a more dynamic and complex marketplace. Not only is the digital economy affecting the way products and services are delivered, it’s also shaping the way buyers search for providers and policies. There are now two broad paths for distribution. One is the traditional indirect channel, typified by intermediaries such as brokers, and the other is the fast-growing direct-to-consumer model.

Direct distribution spans websites, mobile apps, social media, and other digital channels, and it gives insurers more control over customer interactions and how products are marketed. Buyers increasingly use these channels to engage directly with insurers, underlining the importance of creating a great digital experience and highly focused content.

Whether direct or indirect, distribution today requires the right digital strategy for incumbents to compete with alternative providers who are more attuned to the needs of modern consumers and changing buying habits. As a minimum, insurers need sophisticated content management systems, sales and marketing automation tools, and the ability to reach customers in any channel.

A digital experience platform combines all the resources insurers need to connect with buyers and convert them into customers. Moreover, it can open up new post-sales touchpoints, for example by providing advice on claims prevention and other topics to help customers, thus deepening a relationship and increasing customer lifetime value.

As a leading DXP provider, Magnolia can help any business deliver the right content through the right channels to the right audiences – which is the essence of successful distribution. Whether communicating directly or going via intermediaries, insurers can use a DXP to manage both the medium and the message.

According to conventional wisdom, insurance is sold and not bought. But that description belongs to the pre-internet era. The dynamic has changed, and insurance is now both bought and sold, meaning buyers actively search for the right products across multiple channels. They are discriminating online consumers in a highly competitive digital marketplace, and insurers must therefore work hard to be visible and accessible.

Accessibility and the quality of the digital experience will be key deciding factors for any purchase today, so insurers need to compete on equal terms with insurtechs and other challengers who perfectly understand the digital marketplace and how to appeal to buyers.

Search engine optimization (SEO) is essential for a strong online presence, and Magnolia’s DXP makes it easy to frame content so that it’s visible for different audiences. As part of the Magnolia Optimization Connector Pack, the Siteimprove connector allows Magnolia users to integrate the Siteimprove platform into a seamless workflow to improve SEO, web analytics and content quality. However, SEO is useless unless the content is relevant for buyers. This is where Magnolia can make a big difference to distribution.

Once a buyer has found a brand or product that matches their search requirements, what comes next is critical. The discovery phase is just the start of the journey, and if the right guidance or orientation isn’t provided by the insurer, it won’t lead to the quotes stage. A DXP will ensure that engagement is always user-centric, navigation is easy to follow, content is focused and relevant, and that calls-to-action resonate with user needs.

With Magnolia, distribution is supported by three platform layers. Each layer has four building blocks that enable insurers to centralize and create carefully targeted communication for great digital experiences. Magnolia supports the entire customer journey, starting with pre-sales search and discovery. Other services enhancing distribution include campaign management, content management, and omnichannel delivery.

Content creation and omnichannel delivery are at the heart of effective distribution, and Magnolia excels at both. Insurers can manage content from a central hub and reuse it across multiple channels. Whether it's a campaign banner, structured information such as an article, or an entire campaign, Magnolia’s DXP makes it easy to create and distribute content.

Omnichannel marketing is a must in our evolving online and mobile world. With Magnolia, insurers have a versatile content management system that can connect to new and emerging channels and touchpoints. Advanced coding is not required, and marketers can swiftly create and deliver precisely targeted and personalized content that resonates with buyers. Because time to market is crucial, a DXP will ensure both speed and focus.

Global reach is also important. If the business covers more than one country or region, Magnolia will help insurers craft and tailor content for different markets and languages. Whatever the target audience, language or location, insurers can differentiate content while centralizing distribution and control.

Here are just some of the ways Magnolia’s DXP improves content creation and distribution:

Marketing

Editorial

Personalization

A DXP will give insurers a big advantage as digital distribution channels multiply and consumers become more selective. It allows insurers to reach a larger and more diverse audience with carefully targeted marketing messages, and it enables marketers, developers, and third parties to work seamlessly on content creation and delivery.