Case Study - Kwik Fit Insurance - Affiliate Marketing

Objectives

The online market for car insurance in the UK has become heavily dependent on comparison sites. In order to stand out from the crowd Kwik Fit Insurance wanted to use a traditional affiliate marketing model to increase their online visibility.

When the two companies began to work together Kwik Fit Insurance had been running an affiliate campaign for 18 months, but it hadn’t been as successful as they had hoped. They asked bigmouthmedia to deliver a strategic solution aimed at finding a way of gaining traction with the affiliates and increasing the proportion of online sales being delivered by the channel. There were three key objectives to be met:

  • Increase visibility of the Kwik Fit Insurance brand on key affiliate sites
  • Improve the transparency of the conversion rate from leads to valid leads
  • Grow the number of valid leads being delivered via the affiliate channel in the long term

Our Solution

Bigmouthmedia launched the strategy development phase by sending a questionnaire to the campaign affiliates to discover what would encourage them to give increased exposure to the Kwik Fit Insurance brand, with a view to increasing the valid leads being delivered by the channel.

As a result of this questionnaire, the decision was made to change the campaign to pay out on a last click rather than a first click basis. This not only kept the affiliates happy, but also reflected the changing nature of the car insurance market, where there is an increasing tendency for users to purchase through comparison sites rather than going direct to the brand site to take out the policy.

In addition, two incentives were run in conjunction with each other for a period of two months at the beginning of the year in order to capitalise on the biggest month of the year:

  • Prize inventive – entry into a prize draw for every sale generated to win a trip to Dubai worth £2,000
  • Cash incentive – a bonus structure was introduced to encourage signups and volume

Results

Switching to a first click model saw the number of quotes being attributed to the affiliate channel increase 20-fold over the period of one month, with a net effect over the year of a 12-fold increase.

While the overall conversion rate from quote to valid quote did fall, the net effect was a 3-fold increase in valid quotes being delivered by the affiliate channel.

In addition, by working with the closed paid search group to improve landing pages and ensure the Kwik Fit insurance brand is represented within the brand guidelines, conversion increased from an average of 0.50% to 2.40%.

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Summary
  • 3-fold increase in valid quotes being delivered by the affiliate channel
  • 81% uplift in car insurance sales
  • Increase in average conversion rate from 0.50% to 2.4
Bigmouthmedia have been a key driving force in the improvement and progression of the Kwik Fit Insurance affiliate marketing campaign. A key improvement was that from July 2007 to July 2008 we saw an 81% uplift in car insurance sales.

Gemma Whitton
e-Commerce & Marketing Campaign Manager, Kwik Fit Insurance