How is the buying cycle dooming insurance marketers?
Traditional data targeting can lead to a negative ROI
Some might say, “That’s OK; our pricing team will figure it out when the user completes their quote. That would be the case if the company had access to telematics data as part of the quote flow. But if not, carriers will continue to convert and underprice the riskiest drivers using traditional rating systems.
But that doesn’t have to be the case for your business. Your best customers are out there, you just need the right data and targeting strategies to identify and win them.
Identify your ideal customers with telematics data and audience targeting
Using programmatic marketing techniques such as audience targeting, auto insurance marketers can target segments of drivers grouped by risk in their advertising campaigns across the digital ecosystem.
And by using telematics data in their programmatic marketing, carriers can target both nothing but the most profitable customers, or simply adjust their bidding strategy to bid higher for the best customers and lower for higher risk customers.
In addition, with a thorough understanding of their ideal customers, carriers can customize creatives to engage different types of drivers at different stages of the buying journey. Once custom messaging is developed, carriers can run ads through their own platform on the demand side in marketing campaigns across all digital channels.
Smart auto insurance marketers are increasing their ROI by augmenting their traditional data targeting strategies with telematics data and using audience targeting to reach the best prospects for their business.
Fred Dimesa is head of the advertising and aggregated data products segment at Arity. He can be contacted at [email protected].
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