Highlights of the Case Study:
|Client||A significant player in the insurance sector sought to optimize its marketing RoI.|
|Business Challenge||Our client wanted to allocate its marketing budget more effectively to achieve its growth objectives.|
|Impact||Quantzig’s research and insights enabled the client to direct its marketing spend toward the correct variables and increase its RoI by 43%.|
Game-Changing Solutions for the Insurance Industry
The insurance sector is highly competitive, with several players seeking to secure the trust and faith of their clients. In addition, in today’s tech-savvy world, the competition is not just local; it’s global. Customers do not even have to leave their house to get a quote and sign up for insurance policies. Therefore, an insurance company’s marketing plan for growth and success needs to deliver on various fronts, namely, firm image, product elements, price, distribution intensity, propaganda, and promotion. Moreover, the marketing strategy must span all media channels comprising print, television, and social media. Therefore, marketing mix modeling (MMM) is necessary to understand and quantify the impact of various marketing channels.
Insurance companies seek new methods to increase their market share and improve customer satisfaction and loyalty in this fiercely competitive world. Thus, it has become necessary for insurance companies to use the (Marketing Analytics) MMM framework as a decision-making tool to estimate the effectiveness of each marketing input in terms of ROI.
The Challenges of the Client
Our client wanted us to evaluate the impact of its marketing inputs to allocate its marketing budget better and achieve its marketing objectives, including a high marketing RoI. It had in the past tried to prioritize its marketing efforts based on its impact. However, the client’s marketing set-up lacked the knowledge and tools for evaluating and prioritizing marketing inputs to improve its brand name and equity. Quantzig consultants set up a process to explore the impact of the marketing mix variables on the client’s brand equity with the help of our unique MMM framework.
Quantzig’s Marketing Analytics Solution for the Insurance Sector
Our data science analysts performed Pierson correlation tests, regression, and path analysis on collected data to determine the relationship between the dependent and independent marketing mix variables. For this study, data was collected using questionnaires, and the statistical population included customers and representatives of our client. We analyzed the data through the statistical package for the social sciences (SPSS) software and linear structural relations (LISREL) using descriptive and inferential statistical methods.
Our consultants differentiated contributions from incremental drivers (price discounts, campaigns, and promotions) and base drivers (brand value accumulated over the years because of long-term marketing activities). In addition, our analysts prepared contribution charts to represent sales derived from each marketing input.
We used our findings to perform a deep-dive analysis to further assess our client’s effectiveness of every marketing campaign. This analysis was conducted on genre, language, and channel criteria. Our client considered the insights generated through our deep-dive research for budget optimization and shifted its marketing spend from low-performing genre/channels to high-performing genre/channels and increased overall sales and market share.
Impact Analysis of Quantzig’s Marketing Mix Modeling Solution
Our findings showed that marketing mix variables impacted our client’s brand equity to different degrees and on different paths. The results showed that brand image, propaganda, and promotion had a higher impact on our client’s brand equity. We provided our client with the following insights:
- We identified the need to divert focus on promoting its brand image to increase its market share.
- We also established that propaganda was a significant variable impacting our client’s brand equity. We suggested our client use efficient propaganda strategies and design revenue-generating propaganda campaigns.
- Customers’ unfamiliarity with our client’s insurance policies and offerings stopped our client’s business from growing and developing. We advised the client to increase awareness about its products and highlight the advantages of its policies over those of its competitors.
Through the insights and suggestions offered by our consultants, our client was able to direct its marketing spend toward the correct variables and increase its RoI by 43%.
Benefits of Marketing Mix Modeling Solutions:
The deployment of Quantzig’s marketing mix modeling solution enabled our client to optimize its marketing spend by directing focus on building its brand image and increase awareness of its products and their advantages. It could also identify the elements of successful campaigns and divert funds to channels that would help achieve a higher ROI. Our interventions led our client to achieve an increase in its RoI by 43% and placed it on the path to increasing this value over time. Our scientific, data-backed analysis helped our client extract maximum value from its marketing budget and establish a long-term strategy for its marketing activities.
Broad Perspective on Marketing Mix Modeling for the Insurance Segment
The emergence of new marketing mix variables
The changing marketing environments in the insurance industry have led to the emergence of new platforms where insurance marketers can actively engage with customers. This has also led to the emergence of new marketing mix variables. Some of these include the following:
- Product/market trend: Product/market trend is a critical input that drives the baseline outcome and helps insurance companies understand the demand for a product.
- Policy launches: Insurance companies need to invest carefully to position their new policies in the market and plan effective marketing strategies to support such launches.
- Events and conferences: Insurance companies should look for opportunities to build long-lasting relationships with prospective clients and promote their policies and services through periodic events and conferences.
- Behavioral Metrics: Variables such as online behavior metrics and touch-points provide deeper insights into customers for insurance companies.
Key Takeaways of Marketing Mix Modelling Case Study:
The use of Quantzig’s MMM framework facilitates growth in the following ways:
- Evaluates the significance of specific marketing channels
- Helps to make marketing campaigns more effective
- Ensures higher conversion rates
- Achieves higher brand exposure
- Enables the organization to create an optimum bouquet of marketing activities
- Guarantees business growth and higher ROI
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