By Bethany Ramos, Marketing Copywriter, FM Engage
Marketing teams are notoriously busy—and often behind. It’s no wonder testing slips through the cracks.
Between juggling projects and introducing new products, there’s barely time to breathe, let alone conduct the kind of multivariate testing that can save time and money by accurately directing each campaign.
When there aren’t resources available for testing, busyness can come at a cost.
No Time to Test? 3 Reasons to Outsource to an Incubator
More than ever, insurance companies are relying on outside agencies—or incubators—to test. Here’s why:
1. Cut costs and save time.
How does using a testing incubator compare to traditional testing when it comes to time and money? The truth is there’s no comparison. Traditional A/B testing can be slow, costly, and limited in scope. An outside testing agency using multivariate testing can deliver far better results for a fraction of the price.
Working hard doesn’t necessarily mean that you’re working smart.
When targeted testing informs campaigns—down to the words on the envelope—it can save you from making costly mistakes. Time saved on speedy multivariate testing is also money in the bank. This is especially true for in[1]house marketing teams who don’t have the capacity for ongoing testing.
2. Prove/disprove assumptions.
What if your latest campaign was losing you hundreds of thousands of new customers each year? Wouldn’t you want to know right away?
Every company has those tried-and-true campaigns that once performed well and may have even been award[1]winning. But insurance marketing moves fast, and customers’ needs and interests are always subject to change. It’s easy to stick with what works, but only effective testing can tell you if your marketing assumptions still support a winning strategy.
Not testing is more common than you may realize. Surprisingly few companies conduct thorough testing on their omnichannel campaigns. This usually stems from knowledge gaps, budgetary constraints, and limited resources. But most often, it’s because ineffective internal testing methods have created fatigue and confusion within an organization.
This is where an incubator lab comes in. Insurance companies offload the task of testing to an outside agency so they can take a fresh look, identify what is and isn’t working, and build targeted campaigns to send to the most responsive segments.
3. Optimize ROI
Ultimately, you want results, and this is what makes an outside testing incubator so appealing. Leveraging the precision of multivariate testing makes it possible to consistently achieve strong outcomes.
Outcomes are typically measured by ROI.
Here’s an example: You need testing to personalize. Personalized messaging is a key driver of ROI; customers are more likely to engage when they feel understood. Using personalization to elicit an emotional response can help to increase sales and retention. You might also say that effective testing can help you present the right insurance offer to the right customer at the right time.
To sum it all up in a single takeaway: Outside testing may be your smartest move if you’re short on time and resources. A dedicated testing agency is equipped to test, analyze, direct, and refine—it’s what they do every day. Outside testing can relieve pressure and provide assurance that your marketing efforts are working.
FM Engage (a Franklin Madison company) is a direct marketing agency focused on the insurance industry. We use deep experience and proven multivariate testing methods to help connect you with your most promising prospects.
Published in the Fall 2024 issue of Insights Magazine.
PIMA® (Professional Insurance Marketing Association®) is a member-driven trade association focused exclusively on the affinity market.
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