Affiliate Partnerships Enhances Lead Generation and Maximize Customer LTV for Root Insurance
The Challenge
Before partnering with Bloomclicks, Root Insurance had a robust product offering, including car, homeowners, and renters insurance, but was looking for better ways to reach potential customers who were unfamiliar with the brand. Their primary challenge was to increase new customer acquisition through diverse digital marketing strategies while maintaining cost efficiency.
Limited Audience Reach: Despite its technological innovation and customer-centric products, Root needed to reach new customers outside of its existing market.
Market Saturation: Competition in the insurance space made it difficult for Root to stand out and acquire customers in new regions.
Customer Acquisition Costs: Root wanted to ensure that the cost-per-lead (CPL) and customer acquisition costs remained low while driving significant customer growth.
Background
Before partnering with Bloomclicks, Root Insurance had a robust product offering, including car, homeowners, and renters insurance, but was looking for better ways to reach potential customers who were unfamiliar with the brand. Their primary challenge was to increase new customer acquisition through diverse digital marketing strategies while maintaining cost efficiency.
OUR APPROACH
Bloomclicks stepped in to address these challenges by deploying a comprehensive digital advertising strategy centred around partnership and affiliate marketing. The following methods were crucial to Root Insurance’s success:
1. Targeted Affiliate Marketing
Bloomclicks implemented an affiliate marketing program that focused on recruiting top-tier, B2B-focused affiliates. These affiliates were carefully selected based on their ability to drive high-quality traffic, and Bloomclicks’ advanced platform provided insights into affiliate performance, allowing Root Insurance to adjust incentives and commissions as needed.
- Cost-Per-Acquisition Structure: An attractive CPL commission structure was created, with affiliates earning $20 to $40 per lead based on outcomes like sign-ups, additional purchases during registration, and continued usage of Root’s services.
- Affiliate Education: Bloomclicks ran a newsletter campaign to educate affiliates about Root Insurance’s products and services, ensuring affiliates could communicate the value proposition to their audiences.
2. Digital Advertising Optimization
To further drive customer acquisition, Bloomclicks utilized a range of digital advertising techniques, including:
- PPC (Pay-Per-Click) Advertising: Bloomclicks ran geo-targeted PPC campaigns to drive traffic to Root Insurance’s landing pages, ensuring that the most relevant audiences saw the ads.
- Retargeting Ads: A significant portion of the advertising budget was allocated to retargeting ads aimed at users who had shown interest but had not yet converted.
- Social Media Presence: Enhanced social media efforts helped boost brand awareness across platforms like Facebook and Instagram, where Root Insurance’s target customers were active.
3. Landing Page Optimization and Automation
Bloomclicks helped optimize Root Insurance’s landing pages to reduce friction and improve the customer experience. Conversion rates saw a significant uptick by making the pages more user-friendly and offering clear calls to action.
- Automation for Efficiency: Automation tools were introduced to streamline campaign performance and allow for quick adjustments based on real-time data. This ensured that Root could pivot quickly if needed, optimizing campaign effectiveness on the fly.
4. Cross-Sell and Up-Sell Opportunities
Root Insurance’s partnership with Bloomclicks also helped identify opportunities for cross-selling and up-selling to existing customers. Using data-driven insights, Root was able to promote complementary products (e.g., home insurance for auto customers), increasing revenue per customer.
THE RESULT
The collaboration between Root Insurance and Bloomclicks generated impressive year-over-year growth. Within the first year of the partnership, Root Insurance achieved the following key metrics:
- 47% Revenue Growth: Root’s revenue increased by 47%, a direct result of the new customer acquisitions driven by Bloomclicks’ affiliate and digital marketing strategies.
- 68% Conversion Rate: The conversion rate for leads generated via affiliate marketing, email marketing, and PPC ads was an outstanding 68%, showcasing the effectiveness of the targeted campaigns.
- Automation for Efficiency: Automation tools were introduced to streamline campaign performance and allow for quick adjustments based on real-time data.
- CPL Efficiency: The cost-per-acquisition (CPL) ranged from $20 to $40, well within the industry standard, ensuring cost-effective customer acquisition.
- Incremental Traffic Growth: Bloomclicks helped them drive a significant increase in website traffic, leading to more free quote sign-ups and product purchases.
- Retention and Upsell: Beyond new customer acquisition, the campaign helped retain existing customers by plugging bottom-of-funnel leaks and offering upsell opportunities.
| Metric | Before Partnership | After Partnership | Growth (%) |
|---|---|---|---|
| Total Revenue | $50M | $71.5M | 43% |
| Conversion Rate | 40% | 67% | 67% |
| New Customer Acquisitions | 50,000 | 89,500 | 79% |
| Cost-Per-Lead (CPL) | $35 | $20 – $40 | – |
Key Campaigns
1. Free Quote Service Campaign
One of the most successful campaigns was the free quote service promotion, which encouraged individuals and businesses to sign up for free hardware that allowed them to access Root’s insurance services. This campaign, coupled with the affiliate marketing push, generated a significant number of leads and opened up cross-selling opportunities.
2. Email and Newsletter Campaigns
Bloomclicks ran targeted email campaigns designed to educate both affiliates and potential customers about unique offerings. These campaigns contributed significantly to the high conversion rates and retention of customers by keeping them engaged and informed.
Value of the Collaboration
The collaboration between Root Insurance and Bloomclicks proved to be a powerful catalyst for growth, with the following key benefits:
- Data-Driven Insights: Bloomclicks’ advanced platform provided real-time data that helped them adjust its marketing efforts quickly and efficiently.
- Affiliate Performance Optimization: The ability to track affiliate performance and incentivize top performers was critical in ensuring continued success.
- Scalable Growth: By leveraging a mix of affiliate marketing, PPC ads, and email campaigns, Root Insurance was able to scale its customer base while maintaining cost-efficiency.
- Cross-Sell Opportunities: Bloomclicks identified opportunities for them to introduce additional products to its existing customer base, increasing customer lifetime value.