Segmentation Research for a Car Insurance Go-to-Market Strategy
09 Jul 2021

Segmentation Research for a Car Insurance Go-to-Market Strategy

Marketing Problem

An auto insurance company planned to enter the United States market with a new type of policy that offered a more personalized service experience, better claim processing, and improved assistance during an accident. Before launching the product, the provider wanted to better understand the target market and determine if the insurance concept resonated among drivers. Additionally, the provider wanted to refine the brand concept, determine the best messaging for the product, and develop an ideal launch plan. The company commissioned Provoke Insights to develop a research study.

Beyond validating the concept, the company also needed to understand the emotional and psychological drivers that influence how consumers evaluate and select insurance providers within a highly competitive and commoditized marketplace.

Market Research Solution

Provoke Insights conducted an online survey that included the following:

  • A segmentation, which used an advanced analytics technique called factor analysis to generate themes. A cluster analysis followed to create sizable and meaningful cohorts.
  • A concept test to determine which unique selling proposition worked best
  • A MaxDiff analysis to determine which branding support points would most convince the target audience to switch to this insurance company

The research incorporated behavioral science principles and advanced analytics to uncover deeper consumer motivations, attitudes toward risk, and emotional triggers tied to insurance decision-making. Rather than relying solely on demographic segmentation, the study identified mindset-driven audience cohorts to help the company develop a more differentiated and targeted go-to-market strategy.

Research Results

The in-depth findings helped determine the following information:

  • Market penetration- Now, the insurance company knows how many consumers will potentially convert to the brand.
  • A market-wide perspective- Provoke Insights provided a comprehensive look at the different types of auto insurance buyers.
  • Ideal target Audience- Provoke Insights created manageable and sizeable cohorts determining which are sufficient and warrant investment. This analysis provides a deep understanding of why and how these prospects will connect to the brand.
  • Unique Selling Proposition (USP)- Provoke Insights helped determine which branding ideas most resonate with their ideal prospects.
  • Support points- The provider now knows which support points to lead with in the marketing materials.

The research ultimately helped shape a more emotionally compelling and differentiated market position by aligning the brand’s messaging, product benefits, and customer experience expectations with the needs of prospective policyholders.

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