CUSTOMER CASE
The road to product launch
Validating market interest and go-to-market approaches for a new repair insurance concept for used cars
Other insurance companies we've worked with
About FDM
FDM is an association of car owners, with over 250,000 household memberships, dedicated to protecting the interests of motorists.
The Product
An early-staged insurance concept that helps prevent unforeseen expenses and repair costs for used cars, covering both mechanical and electronic issues, and ensuring worry-free ownership.
Objectives
FDM aims to assess the appeal of its new insurance concept before it is brought to market. They want to obtain market-validated insights into consumer demands and needs, as well as branding and design elements. This is to help refine and improve the insurance concept to ensure that they deliver the best products for their customers.
The Challenge
To create a structured digital market validation setup that provides a realistic and interactive experience for potential customers when engaging with the product.
Market Validation Setup
The market validation was conducted on-brand using FDM’s Corporate Visual Identity (CVI). To ensure that we address the right product questions at the right stages of FDM's innovation, we structured two distinct market validation approaches as follows:
Phase 1
To obtain indications of market interest and determine the most fitting product name for the new insurance concept
Phase 2
To identify the ideal insurance coverage years preferred by potential customers as well as the optimal user experience and design when interacting with the product online.
Throughout each validation phase, we closely monitored and tracked all online setups to gain insights into the targeted audience's interaction with the new product concept.
Validate concept attractiveness and product naming
Validate concept attractiveness and product naming
“At FDM Forsikringer, we have found a partner in pree.to who supports our work in testing hypotheses and validating solution proposals. It is a priority for us to involve our members and target audience and understand their needs. Pree.to's knowledge and methods provided us with the relevant insights to make business-critical decisions in the development of our products.”
Philip Egebjerg Gregersen
Product Owner, FDM
Phase 1
Concept attractiveness and product naming
The objective was to quickly identify the most compelling product name and apply this insight to optimize the second market validation phase.
Phase 1
Validation flow
Given the objectives, we conducted four digital campaigns on Meta, each featuring a distinct product name and assess how the targeted audience engaged with each ads.
To gather qualitative data, users were directed to a questionnaire after clicking on the ads. Furthermore, they had the opportunity to sign up for updates about the product's availability (skin-in-the-game). The successful conversions for this phase were the completed signups.
Phase 1
Results
The validation test ran for 5 days and results showed that the new repair insurance concept for used cars generated a higher level of curiosity compared to the industry benchmark.
The ad featuring the product name “Reparationsforsikring” had the highest engagement among all the ad campaigns. It also had a high conversion rate of approximately 31%.
Hence, the product name "Reparationsforsikring" was adopted as the main product name for the second phase of market validation.
Winning product name
Phase 2
Product bundling and UX &UI design for ease of access
For the second phase of the validation, we assessed the ideal insurance coverage years preferred by potential customers and how different variants of configurators would ease the user experience when interacting with the product online.
Phase 2
Configurator variants
We tested three unique pricing configurator options that were integrated on various landing pages. By observing how users interact with each variant, we can determine if differences in configurators impact the overall conversion rate of the new insurance concept.
Phase 2
Validation flow and funnel
To achieve the objectives, we executed Meta campaigns and directed users to three separate landing pages, each with its own configurator. The landing pages also highlighted the product's unique value propositions.
We monitored the users’ digital experience and behavior analytics throughout the funnel to get customer and product insights. We also tracked all call-to-actions (CTAs) on each landing page under the chosen coverage year in the configurator.
All CTAs lead to a questionnaire to obtain qualitative data. After the questionnaire, users have the option to sign up for updates on the product's availability, indicating a strong level of commitment from potential customers.
Phase 2
Results
Overall, market validation tests indicated a strong market interest and response from the targeted audience.
The online campaigns have demonstrated a significant market interest with a Click-through rate (CTR) higher than the industry benchmark. It also showed interest primarily from the male demographic.
Results in phase 2 also showed a cost-per-click (CPC) of 2.19 DKK and a cost-per-lead (CPL) of 55 DKK (completed email sign-ups).
Ideal coverage duration
The landing page insights indicated that at least 80% of respondents from each configurator opted for a 3-year coverage, indicating a strong interest in long-term coverage. Moreover, 79% of respondents in the qualitative questionnaire chose the 36-month coverage period as the most appealing.
Configurator
Configurator B has the highest conversion (CTA clicks), however, Configurator C had the highest response rate and second-highest sign-up rate (a difference of 0.33% from the highest sign-up rate).
*The test includes more data on online customer behavior that is not presented in this case study for confidentially reason.
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