Background

Rescue My Car is a challenger brand in the car breakdown and recovery market . They compete directly with very established brands like the AA and RAC. With ambitious plans for future growth, but without the resources of the competition, it is critical that Rescue My Car’s online recruitment process operates as efficiently as possible.

Rescue My Car was looking to significantly increase Breakdown Cover recruitment numbers, however they had hit something of a ceiling. Aggregator costs were increasing , as were PPC costs. The typical PPC recruitment cost had reached a figure that was equivalent to the value of a policy. This effectively meant PPC had become cost prohibitive as a recruitment channel.

The Task

The task was essentially to look for efficiencies anywhere within the various stages of the recruitment process in order that “leakage” could be minimised and the average Cost Per Acquistion reduced. This in turn would mean that recruitment investment could be increased and higher recruitment targets achieved.

Sculpt Analysis

Sculpt’s initial analysis revealed that Rescue My Car’s present reporting systems understated the returns on present investment levels. This was down to two factors.

Firstly, Rescue My Car enjoys great customer loyalty and policy renewal rates are very high. If recruitment costs are amortised over the 7 years of a typical customer lifecycle, then the original recruitment costs drop very significantly.

Secondly, within the present recruitment there are cross sell products available eg lost key cover. Within the calculation of the cost per acquisition, there was no recognition of incremental revenue from the sale of cross sell products within the Breakdown purchase process.

These two findings effectively meant that Rescue My Car were significantly under spending on PPC and was missing out on profitable business. This was before any conversion rate optimisation initiatives were tested.

Sculpt Recommendations

Sculpt’s recommendations were in two parts;

The first part was to redefine the measurement of success. Given the observations above, Sculpt suggested that Rescue My Car move to a Return on Advertising Spend model (ROAS), rather than a CPA. The ROAS model would recognise the lifetime value of a policy and also any incremental revenue from cross selling other products. Sculpt created an ROAS dashboard for this purpose

The second part of the recommendation was around the UX of the recruitment process. Sculpt’s review of Hotjar recordings had identified two main areas where people were falling out of the recruitment process.  The first area was the home page with significant numbers not proceeding to quotation stage, the second area being the quotation engine itself.

To address the home page issue Sculpt designed a new home page for test purposes.  This home page design was simpler and clearer than the original , with the very first request being for a customer car registration number. Completing this action meant a quotation could be immediately provided within the homepage,

The test was an immediate success with a significant increase in numbers proceeding to the quotation stage.

Results

Results so far, have been highly encouraging.

Sculpt, via the introduction of its ROAS dashboard, has identified that Rescue My Car can profitably spend significantly more on PPC recruitment which will deliver more policies. PPC spend has subsequently increased seven fold.

Sculpt’s revised home page design has significantly outperformed the original home page to the point of reducing acquisition cost by 40%

Sculpt has in summary identified that significantly more volume can be profitably pursued and via enhanced UX, has almost halved the cost of converting that volume.

Sculpt is now engaged on the next task, which is reviewing the form performance within the quotation engine. Results are not yet available but Sculpt is confident that there are yet more efficiencies to be achieved.