Proposition & Pricing

Whether developing a new product or optimising an existing range, we can robustly forecast consumer demand and willingness to pay. Our unique approach takes into account the psychological effects of context to deliver accurate, bespoke insights

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Read below how we helped to develop a new online insurance purchase journey for Lloyds Banking Group

30%

Boost in conversion

3,000

Real life decision makers surveyed

11

Behavioural Nudges tested

Staying ahead in selling online insurance

Situation

As one of the UK’s leading retail banks, Lloyds was making 70% of their product sales in their branches. But by 2014, 60% of consumers were using online channels and aggregator websites during their banking and insurance purchases. This placed substantial competitive pressure on Lloyds to strengthen their online offering in line with the changes seen in customer behaviour.

Problem

The vast majority of Lloyds insurance sales are direct to consumers. This presented an opportunity to convert enquiries into sales in a purchase environment that was fully controlled by Lloyds. But what does the optimal online sales journey for insurance look like and which behavioural principles can be used effectively to boost website traffic and conversions?

Approach

Since customer decision making is sensitive to the context, we recreated Lloyds’ insurance sales journey as an interactive task using Behaviourlab. That allowed us to observe the behaviour of 3,000 insurance customers in an environment as close as possible to the real world. We randomly varied key elements of the sales journey between different groups of customers to test which nudges have the strongest impact on sales. Does it help to provide personalised recommendations? Do customers appreciate flexibility in building their ideal product? Should the price update automatically as customers add options? By combining actual behaviour in the simulated store with measures of perceived value and product comprehension, we were able to answer these questions and gather insight into why certain features led to increased sales whilst others did not.

Impact

Our results showed that key aspects of the customer journey, such as giving customers high flexibility to customise their quote, could boost conversion by up to 30%. We supported Lloyds’ UX team in implementing the top-performing nudges, resulting in a optimised digital sales journey that is still used to this day.