Agency: MediaCom UK
"Some drivers – typically younger ones – are more likely to
be involved in road accidents. This makes them lower value
customers to insurers and they are charged higher premiums
as anyone who knows a new driver knows. We suggested a
new approach. By understanding the lifetime value of those
new drivers with machine learning and by segmenting the safer
prospects, we were able to bid differently on drivers that would
return a profit, and shun those who were likely to cost money in
settlement of incidents.
This was an industry-first approach (as confirmed by Google’s
Chief Search Evangelist, Nicolas Darveau-Garneau).
By factoring Lifetime Customer Value into our optimisation
decisions and the result was staggering. We found 108% more
valuable customers for Motor Insurance."