Driving insurance policy purchases using TikTok best practices
Lemonade is a digital insurance company, a pioneer in the field, with more than 1M customers in the US.
The company offers customers various types of insurance covering all aspects of life. With Lemonade's insurance, one can protect their home and belongings as well as family, including not only human members, but also pets. Lemonade's goal was to drive users to purchase pet insurance and develop new sales channels.
The company viewed TikTok as a reliable source for growing their pet insurance customer base. TikTok is well-known as the platform for pet owners to share their love for their dogs, cats and even more exotic types of animal species.
Pet-owner's community on TikTok is a highly relevant audience for such product. On the platform, they refer to themselves as pet-parents (a popular TikTok hashtag) and thus would be really happy to provide extra security for their pets, whom most of them cherish as kids.
Upon starting with the performance campaign, however, despite really high expectations for the platform, Lemonade did not see immediate success. So the company realized that it needed to review its approach in order to fulfill its goal of generating insurance policy purchases at a low cost per conversion and benefit from the full potential TikTok has to offer.
In order to fulfill the goal, the company reviewed its approach to content and defined the key areas where changes need to be made. After measuring the results, the first thing to do was alter the content strategy into tailor-made content that fits TikTok's unique tone of voice, so they can reach new heights and engage much better with their potential audience.
With the help of the TikTok team, Lemonade started working with a creative agency specializing in TikTok content creation. Lemonade reached out to content creators found via TikTok Creative Incentive plan to gain the platform's best value and get more authentic and native content for their ads.
Another significant shift was creating videos according to the TikTok best practices, such as a strong hook with text-to-speech voice-over and TikTok native text, swipe Left Text ended at the end to hint at more actions to the landing page via diversion ads, shot naively for TikTok with vertical video of the creator, and more.
With the new materials Lemonade produces, the company started a new media strategy based on content shared from the creators' pages. These changes made all Lemonade video content more reliable to the users and made it easier for users to start thinking of Lemonade as a solution for pet insurance.
With the new content strategy taking place, a variety of brand-new content pieces made by TikTok creators were published. Soon after, the hashtag #lemonadepetinsurance reached more than 4M views - from 20K views in March 2022 to 4M views by June 2022.
Implementing TikTok's best practices showed the impact of TikTok's content creators to gain trust and user involvement with the brand. Lemonade's new content strategy was able to help drive more cost-efficient results, with a 42% increase in CTR compared to the former strategy.
Cost per lead decreased by 79%, and purchase costs decreased by 53% - these impressive results show TikTok's added value as a platform that can convert users in a challenging vertical such as Fintech.
When connecting with potential policyholders, we like to lead with education, humor, and heart, which is why Lemonade’s collaboration with TikTok was and is such a natural fit. TikTok provides the perfect platform to speak, in plain English, to young consumers taking some of their first steps on the path towards financial responsibility. Our collaboration with the TikTok team helped us to better understand and optimize campaigns for the platform. We’re encouraged and excited by this partnership—we know this is only the beginning.
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