Insurance Times & Beyond Clicks: How Covid-19 exposed brokers’ over-reliance on price comparison websites

26th January 2021

BIG NEWS! At Beyond Clicks, we understand the impact of how Covid-19 is affecting brokers’ reliance on price comparison websites. Read our article which was published in the Insurance Times on 20th January 2020 to find out more.

 

  • Brokers experienced a 70% reduction in new business volumes at the start of the first
    lockdown, exacerbated by the slashing of ad spending by the main price comparison
    websites.

 

  • But by taking back control of their own marketing strategies, brokers can leverage the
    power of their own data and tip the balance back in favour of their own brand. As such,
    some brokers were able to react quickly and generate their own sales despite lockdown
    pressures.

 

The Covid-19 pandemic has revealed just how reliant brokers have become on price comparison
websites (PCWs) for their lead generation and customer acquisition.

 

Not only does this leave broking businesses exposed to the increased risk of having their new
business volumes dictated to them by the marketing activity of the aggregators, it also restricts
them to the cost-per-sale pricing model favoured by the PCWs.

 

Beyond Clicks Founder Steve Tarbard said: “Many brokers face the challenge of over reliance
on third parties such as price comparison websites and lead purchase as consumers are faced
with a multitude of different broker products, while the lead generation company is the brand
remembered by the end consumer. And with the aggregator or lead generation company holding
the customer data, the broker is unable to carry out its own direct marketing, making retention at
renewal a distant fantasy.

 

“Our role as the industry experts is to change this and shift the balance of power back towards
the broker, whether that be via tailored pay-per-click advertising campaigns, user journey
optimisation, or using in-depth competitor analysis to stay one step ahead of their rivals.”
And in the current climate, the benefits of such a strategy are becoming even clearer, especially
with brokers still reliant on the aggregator distribution channel facing further pressures as the
country struggles through another period of lockdown.

 

“The Covid-19 pandemic has changed the landscape considerably,” Tarbard said. “At the
beginning of the first lockdown, brokers were experiencing a 70% reduction in new business
volumes, exacerbated by the aggregators and other lead generation companies slashing ad
budgets and overall marketing spend.

 

“While the market has picked up since then, brokers who remain focused on price comparison
websites are at a disadvantage. Those businesses who are in control of their own marketing are
therefore able to turn this to their advantage by advertising directly to those customers still
looking for insurance products.”

 

And Tarbard says that by using the services of agencies such as Beyond Clicks, brokers can
further leverage the benefits of controlling their own marketing strategies: “Everything we do is
based on a scheme profile with a target cost-per-quote and sale for each individual broker, using
data to build marketing campaigns targeted at their perfect customer.

 

“Essentially, we provide brokers with the marketing blueprint to succeed, and then nurture
partnerships with our customers to maintain and build on that success over the long-term.”

 

For any broker looking to explore the benefits of individualised lead generation campaigns,
Beyond Clicks is offering brokers a free 30 minute workshop tailored to their business and the
marketing opportunities available.

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