Never before have so many opportunities existed to communicate and engage with customers and prospects. However, in a multichannel environment that allows you to interact with your target audience through a variety of touch points, it can be challenging to determine which channels contributed to a quoted or bound policy. How do you measure where your marketing dollars are most effective? P&C insurers have engaged in a marketing and advertising arms race for many years with companies like Geico, Allstate and State Farm spending $1.18B, $887M and $778M1 on ad spend alone in 2013. But in our increasingly digital world, traditional television and print channels aren’t the only ones garnering marketing budget. According to WordStream, “Insurance” remained the most expensive keyword in Google AdWords in 2013, with State Farm and Progressive spending over $43M and Geico shelling out $23M2 for that channel. To be effective in our multichannel world, you can no longer afford to exhaust marketing dollars without measuring their impact and you must improve your attribution strategies to understand which channels and campaigns ultimately drive customers to convert. Only then can you capture insight on how to most effectively allocate your marketing dollars and measure your marketing spend.
The Abacus Cooperative reported a modest 2% increase in total sales for consumer goods in 2013, compared to 8% in 2012. Yet, the average order value (AOV) continued to increase—driving up sales. The count of active households in the marketplace and purchase frequency was consistent with that of 2012.
In 2013, 10 out of 18 product categories in the Business to Consumer (B2C) segment of the Abacus Cooperative reported growth. The top five growing categories include Home Décor & Furniture, Arts & Crafts/Collectibles, Kitchen, Female Apparel, and Fashion Accessories & Beauty. Interestingly, two of the top five, Arts & Crafts/Collectibles and Kitchen, rebounded from historically negative growth to 5% and 4% growth, respectively. In the Business to Business (B2B) space, marketers experienced nominal overall growth of 1% over 2012, yet saw positive sales growth in 5 out of 12 product categories in the Abacus Cooperative, consisting of Ad Specialty, Food Gifts, HR Training/Seminars, Magazines/Newsletters/Books, and Tools & Agriculture which realized 7% growth
You can’t afford to just guess what’s working and what isn’t when it comes to obtaining a better return from your marketing efforts. For this reason, you’ve likely relied on measuring the effectiveness of your returns by way of some type of attribution.