CRA Technology & Business Marketing Explored
By John Huetter
Telematics company Arity announced that their behavior database could help body shops market their services through leveraging driver behavior to target and market their services to crash-prone drivers. Companies could leverage its Core Driving Risk Audiences service and market themselves to drivers of various skill levels.
For example, an insurer could pitch premium discounts to blocs of good drivers and entice them to switch carriers. This could be hugely lucrative for an insurer; Arity said the lowest-risk drivers “have up to 5x higher Customer Lifetime Value than average drivers.”
Conversely, body shops could potentially harness Arity’s database and get their name in front of bad drivers likely to get in crashes and need collision repair services.
It’s much more precise than attempting to find one’s target audience using demographic generalizations, Arity said.
“Traditional consumer marketing methods are limited, as they’re based on assumptions about demographics and shopping behavior, not tied to the best probability of a driver’s risk of insurance loss or policyholder profitability,” said Fred Dimesa, Director of Advertising and Data Solutions at Arity. “This creates inefficiencies for marketers as well as inequities with how individuals are exposed to opportunities. Arity can cut out the guessing game and ensure you spend acquisition marketing investment on your most ideal customers.”
However, insurers and companies seeking to market themselves to the various types of drivers won’t actually know the names or other personally identifiable information of those drivers.
“To enhance privacy, Arity maintains driving behavior information in a de-identified format,” the company wrote in a news release.
Essentially, your message will be placed before a pool of the kind of drivers you want to target, but you won’t be given their names.
“Yes you are marketing to individuals who share common behaviors,” Arity spokeswoman Stacy Silver wrote in an email Friday. “Our segments are grouped based on behaviors not demographics.”
Arity said it created segments out of a pool of “nearly 100 million connections. … Leveraging insights from more than a decade of driving data history matched with insurance claims and losses, segments are calculated by proprietary risk algorithms that predict the risk of loss.”
Asked if Core Driving Risk Audiences was an option for small businesses and if body shops could market to crash-prone consumers in their area, Silver replied, “Yes this is usable by auto repair shops. We have a number of customers in this sector using our insights today.”
“Auto body, mechanical, and glass repair shops are looking at hard braking and collision data to predict an increase in service requests,” the company wrote in a March 12 blog post.
It goes on to describe a pretty intriguing marketing scenario from a collision repair standpoint:
How do we know that recent driving data — within 24 hours — is highly predictive of auto aftermarket customer opportunities? We tested it. For various businesses, Arity researchers pulled their “customer opportunities” data count for a specific period of time and for a specific geographic location, such as a county.
When overlaid with Arity’s Driving Events and Vehicle Miles Traveled data for those same locations and time period, we found that, again and again, specific driving activities highly correlated with auto aftermarket consumer demand. For example, a 2% increase in collisions led to a 2% increase in customer inquiries.
What’s more, with a high degree of consistency and accuracy, we could pinpoint the lag time between the activity and the inquiry. In other words, these companies could “see” into the future by days, sometimes more than a week, in advance with access to Arity’s database of driving data, arguably one of the largest and deepest database of driving data.
Layer miles traveled with other driving events, such as hard braking and collisions, and you have a multi-faceted view of driving behaviors specific to the locations where auto aftermarket companies are focusing their efforts.
Arity, March 26, 2021
Arity, March 12, 2021
Featured image: The Arity booth at Connected Car Insurance USA 2017 is shown. (John Huetter/Repairer Driven News)
Article Credit to Repairer Driven News.
What is your view on using these types of data basis to selectively target potential clients? If available, would you consider using such a data base of accident-prone people for marketing puproses? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Click HERE to join the CRA Industry Newsletter, it’s FREE
CRA is the innovative and trusted source for motoring information and the latest news to help entrepreneurs, business owners, managers and people working in the motor industry to stay informed and change their world. Get the advice your need to start, glow, and lead your business today. Get unlimited access to all articles.