Behind the data: Allstate America’s Best Drivers Report® Read article
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For smart marketers, segmentation is a critical part of any strategy. Without it, it would be like showing up to a comic book convention and presenting your marketing goals for the year. Wrong place, wrong time – or more accurately, wrong audience, wrong message.
Segmentation involves breaking consumers into groups of audiences based on certain factors, and tailoring your messaging and outreach plans accordingly. For auto insurance market segmentation specifically, these factors could include the “traditional” demographics like age, gender, zip code, or income. Or these factors could delve deeper and look at psychographics like a drivers’ life stage or actual driving behavior.
There are multiple reasons segmentation is a must-have when it comes to building an effective auto insurance marketing strategy:
Digital marketers have a powerful tool at their fingertips when it comes to segmentation and targeting: DATA
There is a tremendous amount of data available to digital marketers today that didn’t exist before the advent of the internet. So, over the years, the challenge has shifted. There’s no longer a lack of data, there’s now an overwhelming amount!
Today, the key challenge is understanding how to segment consumers in a way that’s beneficial to your business, then figuring out what kinds of data are needed to do that and where to get it.
To start, you should ask what kinds of factors are most important when it comes to attracting new customers. What makes sense for your book of business?
Here are a few examples of how this comes to life:
If an auto insurance carrier only operates in 24 U.S. states, then they likely want to focus their marketing spend and only target drivers who live in those states. In this case, demographic data is essential and should be layered on to their marketing campaigns.
Another factor an auto insurance carrier could look at for segmentation is driving behavior. Since consumers who exhibit safer driving behaviors are more likely to become better, more profitable customers, carriers may want to spend more money to attract safer drivers, and less money to attract the riskier drivers.
Or if a carrier’s strategy is to market across the low- to high-risk spectrum, they could reach and tailor their messaging to this segment by promoting competitive rates, accident forgiveness, and roadside assistance.
A third way carriers can segment and target effectively is to reach drivers who are more likely to be in-market for a new auto insurance policy, based on their life stage or recent milestone. For example, knowing if a driver is buying their first car, graduating college, having a baby, or moving to a new state can empower you to tailor messaging towards their current challenges and concerns.
As I mentioned earlier, all these types of targeting require finding and leveraging the right kinds of data. But who can you turn to for access to these valuable datasets?
Here’s a start:
Ready to get started with data-driven market segmentation? Learn more about Arity’s expanded and enhanced suite of marketing solutions, and how it can help you reach the right drivers with the right message.