Case Study: Health Insurance Sales
Acquisition of New Customers through Digital Channels
Case Study: Health Insurance Sales
Health Insurance Sales
Acquisition of New Customers through Digital Channels
Health Insurance Sales
Acquisition of New Customers through Digital Channels
CONTEXT
THE CHALLENGE
Advertising for health insurance on Google Ads and Facebook is highly competitive. There are dozens of insurers, comparison websites, and brokers vying for visibility, driving up ad costs.
Our challenge was to increase the number of new customers while keeping acquisition costs stable.
Working in collaboration with a telemarketing company, we assisted one of the largest health insurance providers in Spain in acquiring new customers through digital channels.
THE CHALLENGE
Advertising for health insurance on Google Ads and Facebook is highly competitive. There are dozens of insurers, comparison websites, and brokers vying for visibility, driving up ad costs.
Our challenge was to increase the number of new customers while keeping acquisition costs stable.
The Key to Our Strategy
Objective: Increase Our Client's Profits
The success indicators of online advertising needed to align with our client’s operational and financial objectives. Traditional KPIs such as ROAS, CPA, and the number of policies sold were not sufficient.
Our success indicator should measure the combined effectiveness of online customer acquisition and phone conversion. The primary KPI becomes the net margin of the entire customer acquisition operation.
Profit Maximization Technology
Based on these needs, we developed a specific technology that automates the management of Google Ads accounts, measuring the complete performance of each campaign in the online-conversion-telephony ensemble, and modifying campaign spending, keywords, times of day, and geographic areas in real-time. The software calculates and updates in real-time the optimal break-even point between lead volume and the unit cost of these leads, maximizing the client’s profit.
Competing with insurance companies and comparison websites
One of the main challenges in making advertising investments profitable was to adapt to the constant influx and departure of competitors in Google Ads, along with their strategy changes.
The solution lay in our software, which enables accounts to adapt in real-time to changes in the competitive landscape. It increases investment where it detects opportunities due to competitor withdrawals and decreases it where increased competition reduces financial performance.
Adapting Online Investment to the Sales Team's Capacity
In the insurance sector, it’s crucial that once a website visitor has provided their information, a sales representative contacts them within a matter of minutes. Otherwise, phone conversion rates drop, making it challenging to make the investment profitable. On the other hand, the number of insurance policy searches on Google varies continuously, leading to peaks where the sales team can’t handle all the leads and valleys where part of the team has no work.
Our team added an additional module to the management software that smooths out these traffic (lead) peaks and valleys throughout the day, adapting the number of leads to the sales team’s capacity to handle them at any given moment. When there’s more traffic than the team can manage, the software reduces bids, allowing us to bid only on leads with higher profitability. If the team doesn’t have enough work, the software bids on all profitable leads (those with the potential to generate profit).
Visibility into the Financial Performance of Customer Acquisition Operations
We created a dashboard that displays not only operational data (costs, leads, sales) but also the profitability of the entire customer acquisition operation. This allows us to provide our partner and client with real-time information on the performance of the operation.
The Key to Our Strategy
Objective: Increase Our Client's Profits
The success indicators of online advertising needed to align with our client’s operational and financial objectives. Traditional KPIs such as ROAS, CPA, and the number of policies sold were not sufficient.
Our success indicator should measure the combined effectiveness of online customer acquisition and phone conversion. The primary KPI becomes the net margin of the entire customer acquisition operation.
Profit Maximization Technology
Competing with insurance companies and comparison websites
One of the main challenges in making advertising investments profitable was to adapt to the constant influx and departure of competitors in Google Ads, along with their strategy changes.
The solution lay in our software, which enables accounts to adapt in real-time to changes in the competitive landscape. It increases investment where it detects opportunities due to competitor withdrawals and decreases it where increased competition reduces financial performance.
Adapting Online Investment to the Sales Team's Capacity
In the insurance sector, it’s crucial that once a website visitor has provided their information, a sales representative contacts them within a matter of minutes. Otherwise, phone conversion rates drop, making it challenging to make the investment profitable. On the other hand, the number of insurance policy searches on Google varies continuously, leading to peaks where the sales team can’t handle all the leads and valleys where part of the team has no work.
Our team added an additional module to the management software that smooths out these traffic (lead) peaks and valleys throughout the day, adapting the number of leads to the sales team’s capacity to handle them at any given moment. When there’s more traffic than the team can manage, the software reduces bids, allowing us to bid only on leads with higher profitability. If the team doesn’t have enough work, the software bids on all profitable leads (those with the potential to generate profit).
Visibility into the Financial Performance of Customer Acquisition Operations
Results
Results
- After a year of collaboration, we managed to increase the number of new daily policies by 60%.
- The cost of acquiring new customers (CPA) decreased by 59%.
