Under GDPR, insurance brands may have to delete up to two thirds of their past customer records and in the process losing a vital sales pipeline, new research from Consumer Intelligence and FastMap indicates.
Companies must obtain explicit permission from customers to store their information under GDPR, which becomes law on 25 May 2018, or risk a fine of up to 4% of global turnover or £16.5m.
However, a survey of over 1,000 drivers conducted by Consumer Intelligence and FastMap revealed that only 32% would give permission for their insurer to keep their information after they leave for “legitimate purposes”, the criteria set by the rules. Only 28% think they have already given permission for their insurer to market to them.
With several high-profile brands successfully offering past customers’ incentives to return after a year or more with a rival company, there is a financial imperative to increase this figure, Consumer Intelligence and FastMap warns.
“Consent messaging, propositions and structures therefore need careful consideration, as the industry realises that GDPR is as much a marketing challenge as a legal requirement,” said Ian Hughes, CEO of Consumer Intelligence. “If you get this right, it could be a substantial competitive advantage for the future. The price for getting it wrong can’t be measured.”
David Cole, managing director at FastMap (pictured), added: “Back in the day, for many it was a game of hide the opt-out box, but GDPR changes the rules. It’s now a marketing challenge. The insight, creativity and communication that surround consent statements are the fulcrum through which brands gain marketing consent. Every hour of every day, brands are losing money because the considerable talent of their marketing teams are not deployed with the year’s most crucial project.”
Consumer Intelligence and FastMap have joined together to support financial services and insurers to prevent GDPR from decimating their databases – and having a seismic commercial impact.
The duo will help insurance brands realise what is compelling and appealing to their customers that will persuade them to consent or give permission for marketing communications.
The service, offered jointly, is designed to help brands realise the commercial impact of collapsing consent rates, with millions of pounds of income at stake, as well as offering the opportunity to develop new statements and structures through benchmarked research testing.
They are also launching an event at the Novotel in Canary Wharf on June 22 to kick off the partnership. For more details visit the Consumer Intelligence website>
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