Business data analysis is the set of activities that managers conduct to solve complex problems, achieve major goals, and make strategic decisions by gathering, analyzing, exploring, and visualizing information useful to the business needs. To perform effective analysis and obtain the most desirable results, the business must have reliable, correct, and relevant data. Working with accurate data is the only way to ensure that managers are obtaining the most accurate solutions to the problems they are trying to solve.
The data set is analyzed in this assignment is from AVISA Insurance which employs various price comparison websites to market and sells its car insurance. There are 10 price comparison websites mentioned in the dataset, along with other data points such as advertising budget on each platform, percentage of customers who eventually bought car insurance via these websites, number of customer engagements, revenue contribution from each website.
We are trying to measure the firm’s ad dollars being spent on these websites, figure out the most effective website, by each age group or target segment and weed out the platforms with the least engagement, revenue, and other metrics, and reduce the spending on such platforms to get a better return on the advertising spending.
The total revenues attributable to price comparison websites are equal to £632,000. The highest revenues were brought by Confused.com (£ 150,000), followed by Compare the Market (£ 140,000) and GoCompare (£ 135,000). The least revenues were from Insuro.co.uk (£ 2,000) followed by Money.co.uk (£ 8,000).
The average revenue for each platform is £63,200, while the median was £45,000, with a large standard deviation of £59,366.66.
We will analyze the revenues contributed by the age group.
For the age group 20-30, Compare the market contributes the most revenues (£70,000) followed by Confused.com (£36,000) and GoCompare (£31,050). For the age group 31-40, Confused contributes the most (£39,000), followed by Money Supermarket and Compare the Market contributes the second most revenue (£37,800). For the 41-50 age group, Confused.com has the highest revenue contribution (£ 52,500). GoCompare has the revenue contribution from the 51-60 age group (£ 25,650). Money Supermarket has the highest revenue contribution among the 61-70 age group (£ 13,600) and the 71-80 age group (£ 6,400).
Compare the Market, Confused.com & GoCompare derive the overwhelming majority of the revenues from the 20-50 age group while the website Money Supermarket derives 53% of its revenues from the 51-80 age group and only 5% of its revenues from the 20-30 age group. There is no other website, which derives more than 50% of its revenues from the 51-80 age group.
The dominant website in the 20-30 age group is Compare the Market, which gets 50% of its revenues from this age group. If you would like us to assist you with papers on this topic, contact us for businessanalytics assignment help.
The return on advertising is computed by taking the ratio of total revenue attributed to the specific price comparison website and the advertising budget allocated to ads on the price comparison website.
GoCompare has the highest return on advertising, (675%), followed by Compare the Market and Confused.com. The least return on advertising is from Insuro.co.uk, whose return on advertising is about 100%, followed by uSwitch (188%).
The advertising budget allocated to Insuro.co.uk is £2,000 and Money.co.uk is £4,000 and uSwitch received £8,000. These three platforms received the three smallest advertising budgets among the 10 platforms. That may have contributed to the least customer engagement levels and low return on advertising, as it is quite possible that with such low advertising budgets, the ads or the company’s brand was not generating enough customer awareness compared to the platforms where AVISA allocated higher advertising budgets.
This confusion is solved by looking at the percentage of customers who bought car insurance from the specific price comparison website. We see that Insuro.co.uk has the least percentage of buyers (5%) and the least number of customers engaged (2000). Money.co.uk also has a low percentage of buyers (10%), followed by Money Savings Expert (15%) and uSwitch (20%).
Judging purely by the return on advertising metric, GoCompare is the most efficient price comparison website, followed by Compare the Market and Confused.com, as they are best at converting customer engagements to buyers of car insurance products. To further understand this topic, connect with our quantitative analysis assignment help providers.
The highest number of customer engagements happened at Money Supermarket (80,000 customers), followed by GoCompare (60,000 customers), Confused.com (40,000 customers), and Compare the Market (35,000 customers). The least number of customer engagements happened at Insuro.co.uk (2,000 customers), followed by uSwitch and Money.co.uk (5,000 customers each). However, the number of customers who bought car insurance from the price comparison website, wasn’t in the same order, with GoCompare being the largest seller (36,000 buyers), followed by Money Supermarket (32,000 buyers), Confused.com (30,000 buyers), and Compare the Market (19,250 buyers). Only 100 customers bought their car insurance from Insuro.co.uk and only 500 bought from Money.co.uk.
The highest customer engagement rate is for Confused.com (75%), followed by GoCompare (60%) and Compare the Market (55%). The least customer engagement rate is for Insuro.co.uk, followed by Money.co.uk.
The data shows that Confused.com is the best at converting the customers who visit the website to buyers, at 75%, followed by GoCompare. Money Supermarket has the largest traffic to the website (80,000) but is rather average when it comes to the percentage of buyers who actually buy from the website (40%).
We recommend continuing to invest inCompare the Market, GoCompare, Confused.com, Money Supermarket, and Money Expert, as these websites perform well on all the three metrics discussed in the previous section.
Compare the Market, GoCompare, Confused.com can be used to target the 20-50 age group while Money Supermarket can be used to advertise to the 50-80 age group, as they do well with that age group. Spending advertising dollars on Insuro.co.uk, Money.co.uk, and uSwitch don’t seem to be contributing significantly to the number of car insurance products bought. The return on advertising dollars is rather low on these websites and the ad budget allocated on these websites may be reallocated to the other top performing websites to increase the car insurance sales.