Measuring the online experience of auto insurance companies

AUTO INSURANCE BENCHMARK STUDY Measuring the online experience of auto insurance companies Author: Ann Rochanayon Sr. Director of UX/CX Research at UserZoom

Contents Introduction Study Methodology Summary Task Results Task 1: Open Research Task 2: Getting a Quote Overall Findings Recommendations Appendix About UserZoom 3 4 6 10 10 19 24 31 33 37 2

Introduction The Internet is a common resource for those shopping for auto insurance. An increasing number of consumers gather information about auto insurance online. According to a 2012 McKinsey Research study, 73% use the Internet to gather auto insurance information, an increase from 55% in 2008 1. 73% 55% 2008 2012 To gain further insight into consumer behavior while researching auto insurance online, UserZoom s researchers created a competitive benchmark study with the following goals: 1. Determine what sites participants visit to research auto insurance options. 2. Understand which auto insurance company offers the best online quote experience. 3. Assess the impact of the online quote process on brand perception, Net Promoter Score and conversion. http://www.mckinsey.com/client_service/financial_services/latest_thinking/insurance, Winning share and customer loyalty in auto insurance: Insights from McKinsey s 2012 auto insurance Customer Insights research 3

Study Methodology Sites evaluated: US participants 200 participants were recruited by email from a panel provider N=200 (~50 participants per site) Between-subjects design Participants were randomly assigned to evaluate one of four auto insurance companies after completing an open research task Ages 25+ Must own a vehicle Participated via. desktop / laptop 4

Participants were invited from a panel to answer a few questions in the screener survey to ensure they meet the demographic criteria for the study. Qualified participants were taken directly into the study where they re asked a few market research questions and assigned to perform two tasks. The first was an open task where participants may visit any site to research auto insurance options. For the second task, participants were randomly assigned to one of the four sites to evaluate the auto insurance quote process. Upon completion of the tasks, participants answered a few questions about their overall experience in the wrap-up section. Screener Introduction Tasks Research Auto Insurance Options Starting from this BLANK WEB PAGE, research options for auto insurance online. Do not go through the quote process. Navigate the web as you typically would if you were actually researching auto insurance in real life. Customer Service Obtain an auto insurance quote on the [COMPANY] site. Wrap-up 5

Summary Open Research Task Site Specific Findings 6

Open Research Task 83% of study participants indicated they typically research auto insurance coverage and pricing online, more than any other method of research. This underscores the importance of having a good web presence, offering the information users seek and providing a good online experience. During the open research task, participants began the process of researching options for auto insurance on a blank page to eliminate any potential bias introduced by a specific start page. The most common types of information participants looked for were auto insurance quotes, rate comparison, and discount information. Most succeeded in finding the information they were seeking, however, some participants were unable to find information such as a comparison tool or site, independent reviews, and discount information. Search engines were the most common type of site participants visited first (56%) with Google being the most popular search engine. 60% of search terms used were general, with terms such as Auto insurance, car insurance being most frequently used. Participants also searched for specific insurance companies, but in much lower numbers. Specific insurance sites were the second most common type of site first visited by participants (41%) with GEICO, Allstate, Progressive, and State Farm being the top visited insurance sites. These top four sites correspond with the insurance sites participants were most aware of and also the insurance sites with the highest marketing spend. 7

Site Specific Findings User Experience Rankings 1. 2. 3. 4. Progressive edged out Allstate and other auto insurance companies tested in this benchmark in the User Experience Rankings. GEICO had a solid third place ranking, while AAA lagged behind all sites. To assess the overall user experience of the sites, UserZoom captured over twelve measures of the participant experience while obtaining an online auto insurance quote. The user experience metrics captured include key performance indicators such as task effectiveness, task efficiency, ease of use, trust and conversion. The User Experience Rankings were derived based on how each site performed according to each user experience metric. Progressive fares the best in the User Experience Rankings 8

Site Specific Findings Participants rated Progressive highest on several key metrics, including Organization and Layout, Overall Satisfaction and Likelihood to Visit the Site in the Future to Request a Quote. In unaided comments, many participants found the quote process easy and fast. Participants also perceived that Progressive handles privacy and security better than the other sites studied. Allstate rated highest on ease of obtaining a quote and more participants felt the quote process was just the right length and required the right amount of information, although more time was spent obtaining a quote on Allstate than on the other sites. Participants experienced the fewest obstacles while obtaining a quote on Allstate. Allstate also had the highest brand perception (pre and post study) and the greatest increases in associations with positive brand attributes. Participants were most successful on the GEICO site when asked to obtain a quote. GEICO also rated highest on ease of use. However, one of the biggest frustrations with GEICO was the amount of information required and not enough explanation as to why the information is required. AAA was rated the lowest by participants across all key performance metrics (i.e., Ease of Obtaining a Quote, Organization and Layout, Overall Satisfaction, Likelihood to Visit Site in the Future to Request a Quote, and Net Promoter Score). Out of the sites studied, AAA had the lowest brand awareness. Note that AAA also provides a different site experience depending on the participant s region. Allstate also had the highest Net Promoter Score. 9

auto insurance Task 1 Open Research Description: Starting from this BLANK WEB PAGE, research options for auto insurance online. Do not go through the quote process. Navigate the web as you typically would if you were actually researching auto insurance in real life. 10

Participants were most interested in looking for auto insurance quotes, rate comparison, and rate discount information. Which of the following type(s) of information did you look for while researching auto insurance options [Check all that apply]. Auto insurance quotes 56% Rate Comparison 52% Rate discouunt information 44% How to choose coverage / deductible amounts 36% Multi policy discount 36% Determine how much insurance needed 29% Information about agents 22% Other 5% N = 200 11

Nearly all participants were successful in researching options for auto insurance online, while 78% found the process easy. Those who had difficulty, primarily were frustrated with the questions required to obtain a quote. Were you able to research options for auto insurance? 2% How difficult or easy was it to research options for auto insurance online? 2% 20% 78% Yes No 98% very difficult (1-2) Neutral (3-5) Very easy (6-7) Why was it less than easy to research options for auto insurance online? They don t give quotes without all your information They ask so many questions that don t matter They want too much personal info up front. I m not willing to give it all away for fear that they d plague me with repeated phone calls or emails or mail Too many questions that I couldn t answer 12

Although most found the information they sought, a few had difficulty finding information such as comparison tool or site, independent reviews, and discount information. Please list any information you expected to find about auto insurance, but didn t. An easy comparison site of all car insurance A third party tool for rate comparison and reviews A place where you compare most major insurances. Or compare other insurers on the site Discounts for good driving record, seat belt use, airbags More information on insurance agents near me that sell insurance from more than one company Multi-insurance to put my house and auto together Each site almost immediately wanted name, contact and demographic info; not even able to get ranges of costs without providing them personally identifiable info. Makes researching tough without becoming a sales target 13

56% used a search engine to begin the process of researching auto insurance. Of the search engines first visited, Google was the most popular (73%) followed distantly by Bing (11%) and Yahoo! (9%). First Type of Site Visited 3% 1% First Search Engine Visited 1% 6% 41% 56% 11% 9% N = 107 73% Search Engine Insurance Site Insurance Broker Other Google Bing Yahoo MSN Other During the open search task, participants visited just under 2 sites and spent 2.61 minutes on average. 59% used a search engine at anytime during the task. Open Task Stats Average Number of Sites Visited Average Time Spent 1.74 2.61 min N = 190 Used search at anytime 59% 14

Many participants also had a specific insurance company in mind when they began their research. 41% started the open research task on an insurance company website. GEICO and Allstate received the most visits from participants beginning their tasks. First Type of Site Visited 3% 1% First Insurance Company Site Visited 41% 56% 3% 3% 6% 6% 5% 27% 13% 16% N = 77 21% Search Engine Insurance Site Insurance Broker Other GEICO Allstate Progressive State Farm Farmers Liberty Mutual Mercury USAA Other N = 190 15

84% of all participants visited an insurance company site at anytime during their open task. GEICO was also the most visited insurance company site overall. 21% visited GEICO at anytime during the course of their research, followed by Progressive (18%), and Allstate (14%). Percentage Who Visited Insurance Sites ANYTIME During the Open Task GEICO Progressive Allstate State Farm Liberty Mutual Nationwide AAA Esurance Travelers USAA Other 21% 18% 14% 10% 5% 5% 3% 3% 3% 2% 9% N = 190 16

60% used general search terms to research auto insurance options, while 58% searched for specific insurance companies during their research process. Search Terms Search Terms Auto insurance, car insurance 22% Insurance quotes, online insurance quotes 3% Auto insurance companies, car insurance companies State farm, state farm car insurance, state farm quote 14% 9% Metlife, Metlife auto insurance Travelers insurance Farmers, farmers insurance 3% 3% 2% Allstate, allstate.com 8% Hartford, Hartford insurance 2% Geico 8% Mercury insurance 2% Auto insurance quotes, car insurance quotes 7% 21st century 1% Liberty Mutual 5% Amica 1% Cheap, cheapest auto insurance 4% Auto insurance review 1% Nationwide, nationwide insurance 4% Free car insurance quotes online 1% Progressive, progressive auto insurance 4% Rating territory insurance 1% AAA, AAA insurance, AAA.com 4% Shelter insurance 1% Insurance 4% Safeco 1% Car insurance comparison, compare auto insurance 3% General search terms used Searched for specific insurance companies N = 190 17

The following video illustrates one of the more common behaviors participants exhibited when asked to research auto insurance options starting from a blank page. 18

Task 2 Getting a Quote Description: Obtain an auto insurance quote on the [COMPANY]. 19

When asked to obtain a quote, participants were most successful on the GEICO site and rated GEICO highest on ease of use. Allstate had the second-highest ratings and participants encountered the least number of issues while performing the task. Key Performance Metrics Task success 62%* 80% 82% 76% Ease of use 46%* 63% 69% 52%* Did not encounter issues 34% 47% 39% 42% *Significantly lower than site with highest rating at 90% CI Site with the highest rating Site with the lowest rating Task success: Responded Yes when asked, Were you able to obtain an auto insurance quote on [COMPANY] site? Ease of use: Responded 6-7 on a 7-point scale when asked, How difficult or easy was it to obtain auto insurance information on this site? where 1 = Very difficult and 7 = Very easy. Did not encounter issues: Responded I did not encounter any problems or frustrations when asked, Which of the following problems and frustrations, if any, did you encounter while obtaining an auto insurance quote? 20

Although participants spent more time obtaining a quote on Allstate, they felt Allstate required the right amount of information and the quote process took the right amount of time. Key Performance Metrics Right length of time to obtain quote 60% 76% 67% 64% Right amount of info required 62% 84% 61% 68% Time on task (min) 4.65 6.98 4.68 4.45 *Significantly lower than site with highest rating at 90% CI Site with the highest rating Site with the lowest rating Right length of time to obtain quote: Responded Just right when asked How would you rate the length of time to obtain an auto insurance quote on the GEICO site? Right amount of info required: Responded Just right when asked, Which of the following describes the amount of information required to obtain a quote on this site? 21

Participants had more difficulty obtaining a quote on AAA due to a variety of obstacles. AAA participants had more problems determining where to start the quote process and technical issues. Allstate participants encountered the least problems and frustrations. Problems and Frustrations Quote Process Unclear where to go to start the quote process Process of obtaining a quote was confusing Unsure where I was at in quote process 6% 2% 8% 4% 2% 6% 4% 16% 18% 24% 20% 26% Information Required Scrolling Tecnical Issue Too many steps required Unsure how to move forward with obtaining a quote Unsure what info was required vs. optional Too much information was needed Didn t understand why certain info was required Didn t understand terminology used Too much scrolling required Encountered an error / technical issue Site was slow Other I did not encounter any problems or frustrations 2% 4% 0% 2% 0% 2% 4% 6% 8% 6% 10% 6% 6% 6% 6% 10% 12% 8% 10% 10% 6% 12% 8% 6% 4% 8% 8% 12% 12% 12% 16% 16% 16% 16% 18% 16% 22% 20% 16% 22% 34% 39% 42% 47% AAA Allstate GEICO Progressive 22

What did users like? I liked that it had options to customize a quote or get a standard or premium quote. The site asked simple, easy-to-understand questions in gathering information in how to best help me get the best coverage I could afford. It was straightforward what to type in where. It was easy to fill out the information. Nothing confusing about it. The process was easy to follow and the questioning unfolded in a logical way. The webpages were designed well and easy to read. The process was easy to follow and the layout made sense in the way it was organized Also I appreciate that I could skip enter my social security number because I do not feel like it is necessary to reveal this information in order to get a quote. Most questions were easy to answer without having your policy in front of you. It looks up discounts and tries to verify your correct information. It was easy to understand what information they needed for the quote. I found the forms very easy and self explanatory. First question asked was whether I wanted to bundle policies to save more; liked that Did provide option to explain why each / most questions were being asked. The site pages were designed well and let me answer the way I wanted. They made suggestions or gave me options. I thought it was a very well thought out process and the quote was a decent amount. Could use name my price. Gave comparisons. Easy, quick. 23

Overall Findings 24

Study participants found the Allstate easiest to use to obtain a quote, significantly easier than AAA, the lowest rated site across all key performance metrics. There were no other meaningful differences in other key performance metrics. Progressive rated highest on Organization and Layout, Overall Satisfaction and on Likelihood to Visit to Request a Quote in the Future. Key Performance Metrics Ease of obtaining a quote 42%* 65% 61% 54% Organization and layout 56% 63% 59% 66% Overall satisfaction 50% 57% 55% 60% Likelihood to visit to request a quote in the future 34% 43% 39% 50% *Significantly lower than site with highest rating at 90% CI Site with the highest rating Site with the lowest rating Ease of obtaining a quote, Organization and layout, and Satisfaction: Responded 6-7 on a 7-point scale when asked, Please rate the [COMPANY] site on the following where 1 = Negative and 7 = Positive Likelihood to visit to request a quote in the future: Responded 6-7 on a 7-point scale when asked, How likely would you be to visit the [COMPANY] site to request a quote in the future? where 1 = Not at all likely and 7=Extremely likely 25

Participants also rated Progressive highest in terms of privacy, security, and handling personal information compared to other sites. Progressive provides reassurance to users about privacy and security in several places during the quote process. Based on your experience with the site today, please rate your level of agreement with the following statements. Privacy and Trust The site seems to handle privacy and security well 54% 51% 48%* 66% I would trust this company with my personal information 44% 57% 44% 58% *Significantly lower than site with highest rating at 90% CI Site with the highest rating Site with the lowest rating 26

Brand perception slightly decreased for all sites after interacting with the sites to obtain a quote. The drops were not significant. Participants had a better impression of the Allstate site both pre and post-study with brand perception ratings significantly higher than all sites. Pre vs. Post Brand Perception Based on what you know / your experience today, please rate your perception of [COMPANY]. 73% 63% 56% 46% 52%* 45%* 55%* 48% Site Delta AAA -10% Allstate -10% GEICO -7% N=39 N=50 N=49 N=51 N=46 N=49 N=47 N=50 AAA Allstate GEICO Progressive Pre Post Progressive -7% *Significantly lower than site with highest rating at 90% CI Responses of 6-7 shown from a 7-point scale where 1 = Negative and 7=Positive 27

In addition to having the best perceived brand perception, Allstate also had the highest Net Promoter Score with more site promoters than detractors. How likely is it that you would recommend the [COMPANY] website to a friend or a colleague? AAA 58% 18% 24% NPS -34% Allstate 31% 33% 35% 4% GEICO 47% 28% 24% -22% Progressive 44% 20% 36% -8% Detractors (0-6) Passivees (7-8) Promoters (9-10) 28

Allstate also had the most increases in positive brand attributes associated with the company. GEICO and Progressive saw a few increases as well. Change in Associated Positive Brand Attributes Pre vs. Post Site Evaluation Which of the following words or phrases would you use to describe [COMPANY]? Innovative -8% -10% 16% 2% Comprehensive -26% -16% -4% 0% Trustworthy -26% -22% -6% -11% Dependable 0% 0% 0% 9% Established -6% -6% -6% 0% Customer-oriented -19% -14% -16% -3% Convenient -12% -3% 2% 17% Helpful -14% -9% -1% 8% Easy -3% 4% 8% 21% Accessible 7% -5% -2% 12% Value -9% -6%-4% 0% Inexpensive -18% -11% -2% -4% AAA Allstate GEICO Progressive 29

After interacting with the site, more participants perceived Allstate, AAA, and Progressive as untrustworthy and more participants perceived Progressive as expensive. Meanwhile, associations with untrustworthy and expensive decreased for GEICO. Change in Associated Negative Brand Attributes Pre vs. Post Site Evaluation Which of the following words or phrases would you use to describe [COMPANY]? Untrustworthy Expensive 6% 8% -1% 4% -4% 10% -7% 8% AAA Allstate GEICO Progressive 30

Recommendations 31

1. Ensure that the site is optimized for common search terms users utilize when searching for auto insurance. 2. Consider paid search ads with Google and possibly Yahoo! and Bing. 3. Reassure users that their privacy is protected and their information is secure. Obtain certification from trusted third parties and use the privacy and security seal / logo during the quote process to help visually illustrate the site is secure. Provide visible and easy access to the privacy policy link throughout the entire quote process. 3. If information about the user is being pulled from other sources to generate a quote, clearly disclose this. Allow users the opportunity to edit this information if needed. 4. Provide clear visual indicators of where users are during the quote process. 5. Provide easy access to further information / explanation as to why information is needed. 6. Include links to explanations to industry terms (e.g., types of coverage) that users may not understand. 7. Clearly indicate which information is required to proceed with the quote process. 8. If there is an error in the quote process, explain what the error is and how to fix it. The error should be marked inline. Ideally take users directly to the error. 9. Provide guidance on how to fill out quote (e.g., format for date of birth). 10. Allow certain types of information to be optional, but explain why providing the information would be useful (e.g., Social Security Number, Vehicle Identification Number (VIN)). 11. Assist users in finding discount opportunities. 32

Appendix 33

A majority of participants typically research auto insurance coverage and pricing online, more than any other method. How do you typically research auto insurance coverage and pricing? [Check all that apply] Research Online 83% Discuss with an insurance agent 55% Discuss with friends / family 43% Review Information I receive through the mail 37% Email an insurance company 22% I have never researched auto insurance 37% Other 22% 34

GEICO had the highest level of brand awareness, followed closely by Allstate, Progressive, State Farm, and Farmers. These four companies also have the highest marketing spend. Which of the following auto insurance companies have you heard of? [Check all that apply] N = 200 GEICO Allstate Progressive State Farm Farmers Nationwide Liberty Mutual AAA MetLife Travelers 21st Century The Hartford USAA Mercury Other None of the above 1% 7% 23% 61% 60% 57% 95% 94% 94% 93% 91% 87% 80% 79% 76% 70% Sites evaluated in the UserZoom benchmarking study http://www.mckinsey.com/client_service/financial_services/latest_thinking/insurance, Winning share and customer loyalty in auto insurance: Insights from McKinsey s 2012 auto insurance Customer Insights research 35

Participants were divided when asked if they preferred a shorter quote process that is less accurate or a longer quote process with a more accurate quote. If you were planning to switch auto insurance, which of the following would you prefer when seeking auto insurance quotes? 51% 49% A shorter quote process with a less accurate quote, but less information required A longer quote process with a more accurate quote, but more information required 36

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