Auto insurance marketers: Your guide to meaningful KPIs in 2023
Auto insurance marketers are experiencing a lot of turbulence right now. Not only are top insurers pulling back on marketing spend, but consumers’ budgets are also tight. And, as a consequence, there’s an increase in insurance shopping and switching.
This means auto insurance marketers are tasked with navigating an especially bumpy path – they’re expected to do much more with less. How can these marketers reach more of their best customers with less resources available?
Rather than riding out the turbulence on autopilot, Arity’s Director of Product Marketing Jen Gold shares how marketers can take control by redefining success with more accurate, meaningful KPIs in her recent PropertyCasualty360 article. Here are three tips:
Tip #1 Reevaluate your traditional KPIs
While traditional KPIs like customer quotes and binds are good go-tos for measuring an auto insurance campaign’s success, there are stronger, more valuable, and often overlooked KPIs to track.
According to Jen, these traditional KPIs are “akin to judging a car’s value based on the number of miles on the odometer and nothing else.” While they’re a valid, valuable measurement, they’re not as insightful as others that marketers could be – and should be – tracking.
Especially in times like these when companies are struggling and looking at how to minimize overall costs, marketers need to prove their long-term value – in both good and bad economic conditions.
Here’s how they can do that…
Tip #2 Optimize for long-term success
The best way auto insurance marketers can optimize for long-term success is to focus on acquiring customers with the highest potential lifetime value (LTV).
Leading insurers like Allstate and Progressive are already measuring LTV against customer acquisition costs (CAC), i.e., the LTV-to-CAC ratio. This can help an auto insurance marketer determine whether or not a campaign is worth the investment based on how much a customer will eventually cost in estimated claims over their lifetime.
To do this, marketers can leverage driving behavior data to find and connect with their best customers based on how, when, and where they drive.
Here’s how they can accomplish this…
Tip #3 Target smarter by targeting safer
To support this strategy to increase LTV, auto insurance marketers can use driving behavior data to target the safest drivers in their marketing campaigns. These drivers have the fewest accidents and the lowest claims frequency, so they ultimately cost insurance companies the least.
With the Arity Private Marketplace (PMP) – the nation’s first and only driving behavior-based mobile advertising network – marketers can target those lowest risk drivers (among other risk tiers) to reach their most valuable customers.
If you want more tips around auto insurance marketing KPIs, check out Jen’s full article in PropertyCasualty360. Or, if you’re ready to take control and prove long-term value in this time of turbulence, contact us to get started with the Arity PMP.