Please Analyze the GA-Data (attached) and write up a Memo (max 1 Page - example of how this should lay out is attached) to the head of eCommerce, explaining the YoY (Year over Year)Development of Traf

Recommendation to Expand Product Portfolio

Purpose of the memo

The purpose of this memo is to gain agreement to expand Geico’s portfolio with more premium agent sold products. The brand has successfully grown by positioning itself as a low premium car insurance provider offered online (no agents). Nevertheless, in the past two years, revenue and profit growth for the car insurance division have been flat and management is seeking new opportunities to reinstate growth. A segmentation analysis using cluster analysis has been conducted in order to identify opportunities to grow revenue and profits amongst existing customers.

Project Objective

Context

In order to upsell to a segment of our existing customers, we recommend to further explore the opportunity of launching a more premium car insurance that is sold and serviced by agents. Segmentation analysis reveals that Geico has three core segments of customers. 64% of current customers rate low premiums as very important (including young, low wage earners as well as middle aged, mid income earners). However, 36% of current customers, who are middle aged and high-income earners prefer an agent and are willing to pay a higher premium for this service. Entering the higher premium market will give Geico the opportunity to grow sales revenue and overall profitability. Proposed next steps include running a pricing test, determining the potential of agent sold premium insurance amongst new customers and financial modelling.

Recommendation

Next Steps

Supporting data