Target your annuity campaigns more efficiently

The DTCC annuity sales data used in the 2013 analysis are extensive: $94 billion in inflows, identified at the ZIP code level, across 117 carriers, 138 distributors and 3,467 products. Analyzing these results produces an estimate of market potential. At the national level, according to IAP's report, over 2.6 million households have similar characteristics to households that recently bought annuities—they represent the current annuity market. Within those households, there are 4 – 5 million individuals.

National-level data are valuable for insurance companies but most producers focus on local or regional markets. From that perspective, IAP's analytics determine each ZIP code's: 1) annuity sales potential and, 2) the degree of market saturation. Both factors are important. You want to work in areas with strong sales potential, but if those areas' sales meet or exceed that potential, you'll probably encounter loads of competition and be looking to grow by taking market share from competitors. Alternatively, a market with high potential but less saturation means growth will come from capturing market share.

IAP sells market analyses to advisors for $799 in what Poll calls a practice-level solution. It's a focused package that evaluates local and adjacent markets. Advisors looking for more dispersed analyses negotiate the fee with Poll. "You get data, you get our spreadsheet, you get me on the phone, you get me looking at your mailing history, your production," he explains. "It's kind of all handmade at this point."

Ordering the analysis adds another expense to your marketing budget so there is a cost-benefit trade-off to consider. But if you're not confident that you're targeting the right areas or you're unsatisfied with your sales campaigns' results, the cost of drilling down into your target areas' analytics seems like a reasonable investment.