How to maximize your marketing budget by targeting audiences with telematics solutions
As an auto insurance marketer, what you don’t know about your customers can hurt you.
Traditional targeting methods often fail to provide an in-depth understanding of prospects, making it easy to mistakenly target high-risk drivers. These drivers typically have a low Lifetime Value (LTV), increasing customer churn which can negatively impact profitability over time.
With telematics data, you can get out of this targeting rut. Learn how to gain a true understanding of your prospects to target, engage, and convert quality leads — boosting marketing and advertising ROI.
How does the buying cycle doom insurance marketers?
Online advertising is extremely competitive for auto insurance marketers because they’re targeting a limited pool of prospects. Consumers don’t frequently change insurance — if they have a good driving record and a good rate, why would they switch?
Meanwhile, consumers who do shop for new coverage are usually drivers whose rates have increased because they had an accident or experienced another form of loss. These are not the drivers auto insurers want in their book of business because they’re higher risk. But auto insurance marketers still might target them. Why?
When auto insurers use traditional targeting tactics, they don’t have a complete understanding of the consumers they’re reaching, so they often spend their budget on drivers already in the buying cycle. These practices frequently lead to decreased profitability because they convert customers with low LTV and high turnover rates.
But it doesn’t have to be that way for your business. Your best customers are out there, you just need the right data and targeting strategies to identify and acquire them.
Identify your ideal customers with telematics data
With telematics data and targeted audiences, you can modify your marketing program to target only the ideal customers for your business.
Telematics technology provides information about drivers’ real road behaviors, including distracted driving, speeding, sudden acceleration, and more. With a telematics partner like Arity, you can access these insights and use them to power your marketing strategy.
Arity offers auto insurance marketers the only set of telematics data at scale, with the ability to reach more than 100 million drivers in the U.S. By leveraging our driving connections and using our SDK to collect data via our mobile app partners, we’re able to build Arity Audiences — segments of drivers grouped by driving risk that marketers can target in ad campaigns across the digital ecosystem.
Equipped with Arity Audiences, you gain an accurate understanding of prospects and can select the most valuable driver segment for your business. That means you can guarantee your marketing and advertising spend is focused on the drivers who improve your bottom line. In fact, our tier-one drivers achieve five times greater LTV than average drivers.
Engage and convert your target driver segment
Using Arity Audiences, you can segment drivers based on risk and other behaviors so you can select the types of drivers that work best for your business.
Then, with a thorough understanding of your ideal customers, you can tailor creative to engage different types of drivers in different stages of the buying journey. Once you develop this messaging, you can run ads via your own DSP with campaigns across any digital platform.
Ditch traditional targeting strategies
We’re here to help maximize your marketing budget with Arity Audiences. Check out “How to boost marketing ROI with telematics solutions” for more details on our offerings for auto insurance marketers.