In this exclusive interview with Somesh Surana, Head of Digital Business Group and Marketing at HDFC ERGO General Insurance, we gain valuable insights into reshaping the perception of the insurance industry and creating meaningful connections with customers.
Mr. Surana emphasises the shift from a product-centric to a customer experience-oriented model, leveraging technologies like AI and ML. He also discusses the strategic blend of traditional and digital media channels for successful marketing campaigns and highlights the role of data and analytics in making informed marketing decisions. The interview concludes with a forward-looking perspective on the future of influencer marketing, emphasizing the importance of aligning with the right influencers to ensure brand integrity.
Insurance is very transactional in nature which often evolves fear. How can the industry reshape this perception and create a meaningful brand connection with customers?
I wouldn’t agree that insurance evolves fear. The core proposition of insurance indeed is to protect an individual against uncertainties. So, insurance can be looked at as a protection shield, which nudges the customers to be responsible for self and family.
In terms of the nature of business, I agree that we have a very limited scope to interact with the customer. The interactions are either limited during annual renewals or unforeseen event of claims, the latter being an unwarranted situation where the customer is already in anxiety. Hence, in this background, it becomes important for us to derive propositions, that are beyond business – understand the mind space of the customer and engage them with related conversations.
One of the key propositions that insurers can adopt today is to shift from a product-centric to a customer experience-oriented model. Technologies like AI and ML enable insurers to collect and analyse data, allowing for a deeper understanding of customers’ needs and the creation of tailored products and services, which can help in providing hyper-personalised experiences to the customers.
For instance, at HDFC ERGO, our Here app, one-of-its kind insurance led ecosystem for health & motor, has helped us move beyond insurance and become part of our customers’ daily lives. The customers have positively resonated with this effort, which is evident from the consistent top ratings of the app since its launch in June 2023.
In your opinion, how to blend the power of different media channels (e.g., social media, traditional media) for a successful marketing campaign?
Adoption of media channels truly depends upon the campaign you are promoting. I am fortunate to be a part of such exciting times, where the advertising industry is undergoing through such a positive transformation. Today the role of marketers is not related to promotions of brands or services, but they are in charge of delivering experiences. Hence in such an exciting time, an evaluated blend of traditional and digital media is imperative.
Traditional channels help in creating initial brand awareness and reaching the masses, while digital channels facilitate hyper-personalised communication. So, if you are planning to do product communication, a greater thrust on digital marketing is recommended, because it will not only help to reach high-intent customers and help in building brand recall, but will also provide an opportunity for conversions. On the other hand, for a brand campaign, a decent mix of traditional and new-age media is recommended. Marketers are also increasingly allocating budgets for performance marketing, which along with an opportunity for the brand to reach the right TG, also adds up impressive numbers to the top line.
A holistic approach that combines the reach of traditional channels with the targeted nature of digital ones maximises marketing effectiveness. The Indian internet advertising market is projected to grow at a CAGR of 12.3%, reaching USD 7.9 billion by 2027.
Similarly, the traditional market continues to thrive despite the dominance of digital media which became evident during the Men’s Cricket World Cup 2023, when local and global brands spent nearly 3 million for a 10-second ad. If I talk about the BFSI sector, then while earlier traditional marketing channels were preferred, nowadays, the BFSI sector is also using a mixed marketing approach.
In a nutshell, it is essential to understand your target audience and maintain a proper mix of media channels with the inclusion of both traditional and digital channels to create an effective marketing campaign and reach your customers.
What is the role of data and analytics in marketing campaigns?
There is a popular adage that says, you can’t manage what you can’t measure. I strongly believe that in today’s AI-driven world, marketing analytics holds a significant position as it helps in improving decision-making for better results. For instance, one can track key performance indicators such as views, clicks, etc.; of social media ads or purchase history and browsing behaviour to comprehend customers’ behaviour and create targeted marketing campaigns with measurable ROI.
The measurement matrix is not only important to check the campaign effectiveness but also helps in the course correction for the future campaign and optimise every penny spent. As per a survey by McKinsey, companies with faster growth rate earn 40% more revenue from personalisation than their slower growing counterparts.
Head- Digital Business Group and Marketing
HDFC ERGO General Insurance
What is the future of influencer marketing?
In the ever-expanding digital landscape, influencer marketing remains crucial for fostering authentic connections and driving business growth. As of 2022, India’s influencer industry crossed the mark of INR 12 billion. According to a market survey, 70% of Indians believe that influencer marketing impacts their decision of buying a new product or associating with a new brand.
Looking ahead, a shift towards long-term partnerships is anticipated, moving beyond one-off campaigns to foster deeper brand integration and stronger relationships. While influencers boost brand visibility, marketers must align with the right influencers to ensure brand proposition integrity. One of the challenges to choose the right influencer is the new burgeoning line of influencers mushrooming regularly.
Almost every month, we will see a new face making to the top of the charts. In such a scenario, it becomes important for the marketers to assess key factors like Relevance, Retention, New Ideas etc. while choosing the influencer.
At HDFC ERGO, while partnering with a celebrity couple to spread awareness about the importance of insurance through real-life stories, we underwent all possible assessments before finalising our proposition.
