How to leverage driving data to reshape your insurance marketing strategy
Marketers constantly work to improve the efficiency of their efforts. But in many cases, they target the least valuable customers or focus on misaligned KPIs. With limited time and effort compounding the pressure to show real results, it’s easy to become overwhelmed as a marketer, let alone an auto insurance marketer.
Driving data can help realign efforts and significantly impact the bottom line. Here’s how Arity’s insights can help address common challenges and reshape targeting strategies.
The challenges of insurance marketing
First, let’s talk about KPIs. Often, marketers are hyper-focused on cost-per-acquisition as a KPI. That makes sense; after all, it’s how success is frequently measured. But it also means marketers tend to rely on sources like intent data to identify customers who are most likely to convert because they’ll be the fastest and cheapest to acquire. That wouldn’t be a problem — if only the cheapest customers to acquire were the cheapest to insure.
Unfortunately, the opposite is often true: Eager customers can be the most expensive customers in the long run. These consumers are frequently shopping because their current policy is too expensive (maybe they experienced an accident that caused their rates to increase). Or maybe they weren’t insured at all and need a policy after an accident.
So, it’s easy to see why cost-per-acquisition isn’t the only metric marketers need to consider. Customer lifetime value is ultimately the number you need to maximize to support the business. And that means you need to target the customers who generate the most lifetime value for your business, not just in the short term.
Identifying the most valuable customers
Arity understands this imperative, which really comes down to marketers getting the right data at the right times. You need to identify the best drivers upfront. As insurance marketers, we know that driving data can be an incredibly powerful way to do this, but it’s not easy to execute if you don’t have access to the right data.
With Arity, you get the same data insurers use in their telematics solutions, gathered from a database of tens of millions of drivers — all before the point of acquisition.
That’s driving behavior data from tens of millions of users for over a decade. We score those drivers based on their driving behaviors, matched back to actual claims and losses data. So we have a very real understanding of not just how people drive, but whether their driving ends up causing accidents and other costly events for insurers.
With that data, you can better inform your campaigns to target the most responsible drivers who are likely to be more profitable in the long term.
Up your game
Did you know there are only three auto insurance companies that are growing and profitable?
These leaders have learned how to manage their acquisition costs to land the most profitable customers. Insurers that haven’t balanced these needs are falling behind. With Arity’s marketing solutions, you’re not getting “telematics data” — you’re getting risk insights that will reshape what success looks like for your business so you can join the ranks of those dominating this industry.