How to use driving data to supercharge your marketing strategy
From morning coffee runs to afternoon dry cleaning pick-ups, your customers are habitual drivers. And it turns out, their everyday routes and driving behaviors are the strongest marketing tool in your arsenal.
If you’re not using insights based on your customers’ driving habits to inform your marketing strategy, you could be missing out on your most valuable potential targets — or aiming for targets that could cost you money in the long run.
Here’s how you can use driving behavior data on the road to more effective marketing:
Identify driver risk upfront
The most powerful way insurance marketers can use driving data is in understanding risk. With access to audience segments based on driving data, insurance marketers can see which drivers pose the greatest long-term risk in terms of accident likelihood. It’s not a difficult picture to paint: Behaviors like distracted driving, hard braking, and frequent acceleration all indicate increased risk and ultimately higher costs for insurance providers.
Marketers who lack this data run into trouble because these drivers are also typically the first in the market for new policies — and the first to convert when targeted with ads.
You can see why marketers want to avoid spending ad dollars on riskier drivers who aren’t likely to benefit their bottom lines. Now, they can — by instead targeting prospective customers with histories of low-risk driving behaviors.
Gain access to insights that move the needle
It’s impossible to determine these risk behaviors yourself. Fortunately, Arity’s marketing solutions provide access to data from tens of millions of drivers across the U.S. With our platform, you can target segments of users with the best driving scores. By targeting these drivers, you can balance KPIs like Cost-Per-Acquisition with your company’s broader goals: Profitability and Customer Lifetime Value.
Driving risk is one of – if not the most – important types of behavioral data that insurance companies should use to target prospects. The best predictor of future driving behavior is past driving behavior.
Insurance carriers need to know the likely cost of a prospect over the long term in order to determine how much to spend to convert that prospect into a customer in the first place. This relationship between the cost to acquire a new customer and the customer’s long-term value is critical. If you can balance these goals, the impact of your marketing efforts will extend far beyond acquisition to actually boosting the company’s bottom line.
Marketers who want to target prospects based on driving risk should speak to their agency and demand-side platform (DSP) to determine whether they’re integrated with the LiveRamp Data Marketplace, where Arity’s audiences can be found. If they are, it’s simple to target Arity’s audiences in ad campaigns via the DSP. If not, Arity can make the connection between LiveRamp and the DSP to ensure the marketer can easily target our audiences.