The P&C industry is facing a variety of challenges, including commoditization of products and the ease of shopping and switching, but insurers shouldn't fall into the commodity trap. 

How can they avoid it? Super Consumers are a powerful way for companies – especially those with customer “relationships” – to find growth opportunities. These Super Consumers, which The Cambridge Group identifies as the 10 percent of consumers in any given industry that account for more than 30 percent of revenues and more than 50 percent of profits, have become the rallying cry of a growing number of brands seeking growth.  

What's the Power of Super Consumers? 

They sit at the intersection of big spending and big passion, and that makes all the difference. It's easy to envision passionate consumers in high-tech electronics, automobiles and even some food categories, but some struggle to see Super Consumers' presence in the slightly less-sexy categories of, say, life insurance and auto insurance.

And yet, in our analysis, we have found that Super Consumers do exist in P&C insurance (and, in fact, even in life insurance). This top 10 percent of consumers buys significantly more insurance and more premium insurance. Insurance Super Consumers' principal motivation is around proactively protecting their family and their broader assets. They strongly value customization to their specific needs, and they are powerful, profitable and yearning for providers who understand them.

Identify Your Super Consumers

We found that two “flavors” of proactive consumers invest heavily in protecting their family and assets. 

One is Strugglers – consumers who are fearful of things going wrong in a difficult situation – for example, damage to their property from floods. They are extremely interested in avoiding negative situations and value the peace of mind that comes from having protected their valuable assets.

The other group is Strivers – consumers who want to feel a sense of achievement. They feel good about taking care of their family and belongings. They are driven not so much by a fear of negative outcomes, but more by a positive feeling of accomplishment.

Because these Super Consumers are heavy users and also emotionally engaged in products, they are open to new products and services that appeal to the underlying need for protection.

Tap into Super Consumers in Six Steps

1. First, find and measure the size of the Super Consumer segment in your portfolio. These are your best customers.
2. Unlock the cross-sell and incremental relationship building opportunity by understanding these consumers in your portfolio. If you go deeper, you find quickly that a life insurance Super Consumer is an insurance Super Consumer. They spend more than 40 percent more in annual premiums across all forms of insurance (e.g., auto, home, personal liability and long-term care). Super Consumers in any category present a great upsell and cross-sell opportunity – it's easier to convince them to add protection to their current coverage than it is to acquire a new customer.
3. Create products and services that appeal to their unmet needs. We have found that presenting a range of innovative offerings, such as Allstate's “Your Choice Auto,” allows these individuals to customize solutions to their needs, and they are willing to pay a premium – happily.
4. Use the right messaging to appeal to Super Consumers. Strivers, for instance, might respond to messaging that evokes the super hero with a cape.
5. Understand the implications for your channel: There is immense value in helping the sales force identify Super Consumers, proactively reach them and retain them. Depending on the needs of these consumers, one approach might be to create a direct channel for them.
6. Maintain focus on these consumers to retain them and prevent them from “getting shopped” by competitors. Given their heavy involvement, some Super Consumers may have greater awareness of prices and products available in the market – making them at-risk of switching.

With the insights of this highly passionate and big-spending subgroup of consumers, insurers can rise above the commodity trap. Not only are Super Consumers a valuable source of revenue, but their enthusiasm and participation can drive innovative ideas and word-of-mouth advertising to other potential customers. Find your Super Consumers; it's worth the effort to engage them and keep them.

Alok Gupta and Eddie Yoon are Principals with The Cambridge Group, the growth strategy consulting firm that is part of Nielsen. Alok is based in New York and focuses on developing demand-driven growth strategies for financial services companies in the Insurance, Retail Banking, Payments, and Brokerage/Wealth Management sectors. Eddie is based in Chicago, and has particular expertise in helping market leaders drive category growth and create new categories, often with the insights of Super Consumers.