Ideas & musings about consumer behaviour

Major motor insurance brands losing 81% of “converted” prospects during online purchasing process

motor insurance

81% of customers shopping online for motor insurance decide on a preferred brand early in the process, only to swap to a competing brand at the final purchase stage. This revelation comes from new data just released from digital conversion intelligence company Global Reviews.

After digitally measuring tens of thousands of behavioural data points from online shoppers in the market for motor insurance, Global Reviews found that the major brands are effective at deploying large marketing budgets to build top-of-mind recall. However, these same brands lose hard-won prospects during the purchase process as a result of uncompelling offers, a lack of access to information, and badly designed conversion pages. These “lost opportunities” were most pronounced at Direct Line, but most major brands also suffered this loss to some degree.

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In part, the extreme customer attrition is caused by the growing reliance of digital teams on site-centric, single data sources. These packages focus almost exclusively on the company’s own website, thus reducing their ability to view and respond to overall competitive market dynamics. Whole-of-market visibility is one of the major advantages driving the rise of aggregators who exploit their competitive intelligence to intermediate brands and dictate pricing and preference.

For example, consider that Aviva is a well-known brand with high unprompted recall. The Global Reviews analytics discovered that this strong branding led Aviva to be the initial stated preference of a large number of customers, and yet during the purchase process, Aviva lost a substantial number of these hot prospects to lesser known brand, Churchill. To quantity the difference, Aviva’s Lost Opportunity score was 72%, representing a huge loss of revenue and an escalated customer acquisition cost (CAC).

This high Lost Opportunity and the success of Churchill in dynamically churning hot Aviva prospects during the purchase process is unexpected. Global Reviews data revealed that initially, in-market consumers start their purchase journey with an emotional view of Aviva as a reputable brand with great prices, products which match their needs, good customer service and a website that is easy to use. Churchill on the other hand is perceived as undynamic and being behind the technology curve.

However, once their shopping process has begun these consumer perceptions quickly change, and Churchill consistently delivers “delight”. In fact, astonishingly Churchill ranked first across all competitors as the most preferred brand at the end of the research phase of purchasing. Global Reviews can reveal that this was driven by an online narrative focused on demonstrating a range of products and offers designed specifically to suit individual customer needs. The navigation data also revealed an information architecture that made it simple to find key information on their website.

Online customer journey

Customer Journey Mobile Motor

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If you would like to book a private conversation to learn more about these or any other Global Reviews insights please contact:

Gerard Farrell
Head of Product and Client Advisory
gerard.farrell@globalreviews.com
+44 (0) 203725 8260

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