Finding New Audiences for an Over-50s Insurance Provider With Segmented MMM

Segmented MMM and follow-on testing cut CAC by 22% and improved ROAS by 27% while helping a UK over-50s insurance provider expand digital acquisition.

Marketing Mix Modelling
Geo-based Test
Budget Optimisation
Customer Segmentation
Author

Diego Usai

Published

Jan 2026

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The Challenge

The client, a UK-based financial services provider specialising in insurance products for the over-50s, wanted to diversify their customer acquisition strategy and attract younger prospects within their target market.

Historically reliant on traditional channels such as Direct Mailing and Daytime TV, they struggled to recruit younger customers (aged 50-65) and feared digital channels would not yield a strong return given their core audience, whose average age was 78.

The client was sceptical of digital advertising like Display, Social Media, as well as Prime Time TV (7 pm - 10 pm), viewing them as potential budgetary risks.

The Solution

We implemented a comprehensive analytics suite leveraging marketing mix modelling to quantify the incremental value of the client’s historical media mix.

The customer base was segmented by age (50-65 and 65+), gender (male and female), and acquisition channel (phone and web), resulting in eight distinct customer groups. This segmentation revealed where performance differed most across audience groups. For example, Paid Search proved particularly effective for attracting younger customer cohorts aged 50-65, delivering nearly a third more conversions than for the 65+ segment.

Reassured by these findings, the client was encouraged to explore untapped digital channels.

The Impact

Following the MMM analysis, the client approved budget allocation for four incrementality tests: Prime Time TV (7 pm - 10 pm), Brand Search, Facebook, and Instagram. Each channel was phased into the media mix over time as test results were validated and signed off.

The outcomes were strong: the client saw a 19% reduction in budget wastage, a 22% decrease in customer acquisition costs (CAC), and a 27% improvement in return on ad spend (ROAS).

These results showed that digital channels could reach younger audiences effectively without weakening performance among the client’s core older demographic.

Key Takeaways

  • Marketing Mix Modelling - Offered clarity on relative effectiveness of traditional channels and potential of digital channels.

  • Segmentation Insights - Revealed that Paid Search disproportionately attracted younger customers, justifying a broader digital push.

  • Incrementality Testing - Helped validate new channels before spend was scaled.

  • Business Results – Lowered wastage, reduced CAC, and improved ROAS while expanding digital acquisition.

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