Auto Insurance Industry: Maxing Out Conversions Without Increasing Budget

The government sets the rules, and they set the prices, so Seguros Falabella sets itself apart by using artificial intelligence to secure clients.

The Challenge:

In Colombia, clinics and hospitals are lawfully required to attend to the victims of vehicular accidents regardless of their ability to pay for treatment. In order to cover these accident-related costs (including everything from ER care to funeral expenses) all vehicles must be covered by SOAT.

In Spanish, SOAT stands for compulsory traffic accident insurance. As is to be expected from any government-mandated expense, SOAT has drawn suggestions of corruption and conspiracy from its advent.

In a 2017 article, El Tiempo reported that despite the legal requirement, an estimated 40% of vehicles were not covered by SOAT. For Falabella, this 40% represents a valuable customer onboarding opportunity. However, since the service’s benefits and price are dictated by the Colombian government, SOAT providers have little to compete on but their own ability to reach customers in meaningful and effective ways.

The Campaign:

Falabella is a multi-industry company recognized across South America. Though its brand is mostly known as a chain of emblematic department stores, the company also offers banking, real estate, and insurance services. Because of SOAT’s standardization, the Client realized it could only secure new clients by targeting the right people, at the right time and place, with the most eliciting content.

Falabella turned to Datagran with a proposal: to run an experimental campaign that would test its incumbent marketing solutions against Datagran’s Bright. The Datagran team confidently accepted.

Two conversion campaigns were created. Though both were composed of Instagram and Facebook ads, the control was implemented directly on the Facebook Ads platform while the pilot was published through the optimization using Bright. In order to track conversions attributable to each campaign’s ad sets, Datagran introduced the client to Facebook’s tracking pixels.

Additionally, both campaigns had identical:
• Creative assets
• Interest-based targeting
• Run dates
• Initial budgets*
• Access to the same Facebook Pixel data

The campaigns ran from May 15th through June 3rd, 2018.
*In the end, the Control and Pilot campaign investments were $ 1563 and $1405 respectively.

The Results:

On one hand, the control campaign generated:
47 conversions
• A cost per conversion of US$33.62

On the other hand, the pilot resulted in:
442 conversions
• A cost per conversion of US$3.53

When given the same creative and financial resources, Bright generated 81% more conversions than Falabella’s other solutions

Using machine learning, it fine-tuned the campaign with insights  gathered from the ads’ performance.

The Control campaign was able to access the same insights Bright had, but it didn’t have the capabilities to streamline the campaign accordingly

For example, Bright was able to gather and learn from the campaign audience’s behavior, then creating new ad configurations to maximize results. It also used its knowledge to faze out campaign choices that weren’t generating conversions.

From left to right, the campaign’s top performing ad, ad colors, in-ad emotions, and word choices.

The Outcome:

With Bright, Seguros Falabella discovered its potential to convert more people without spending more money. Additionally, the client received valuable insights to leverage on its future campaigns.
Both Datagran and the client were beyond pleased with the Pilot campaign’s performance. Currently, Falabella is in the process of deploying Bright campaigns for its businesses beyond the auto insurance industry. Soon, we hope to serve Falabella’s retail business in and outside of Colombia.
Until then, we suggest you consider the possibility of generating higher conversions without upping your media budget. If you’re curious about optimization with Bright, know that you need as little as USD200 to run your first campaign. Learn more here.

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