Direct Line: using data for good and building brands post-GDPR
Direct Line’s app for young drivers, Shotgun, was built to tackle a pressing social problem using the driving data of its users. One year on, and with GDPR now in full force, the insurance company says it’s a great example of how brands can use data openly, transparently, and as part of a two-way conversation with the customer.
The app was designed to combat the growing number of accidents on the road involving young, inexperienced drivers. According to Direct Line, 8% of drivers aged under 25 account for 20% of crashes.
“With figures like this, we felt we had to act,” Piers Newson-Smith, head of brand planning, Direct Line, told Mediatel.
So: Shotgun. An app that uses GPS to track each car journey a user makes for 1,000 miles and awards drivers points based on their overall performance. Collecting these data points unlocks rewards from third-party brands such as Pizza Express, Starbucks and Virgin Experience Days.
As a brand that largely targets a more mature audience, Direct Line is traditionally conservative in its advertising strategy – choosing TV over digital advertising, for example.
According to Newson-Smith, a change to its strategy was necessary in order to target a younger audience. Given the almost ubiquitous use of smartphones by young adults, mobile was “clearly a vital channel”.
Shotgun represents a “win-win” situation, he says, as users – knowing how their data will be used – willingly give it up to the brand.
“In order to tell people about their driving, we need to measure it and in order to talk to them in a personal and direct way, we need to use data,” he added.
It’s a proposition Shotgun’s users can clearly get on board with, as the app has seen 25,000 downloads so far.
The short-term effects for the business are arguably minimal – according to Newson-Smith, “we have concentrated our efforts to date on finding out whether we could help fix a huge social problem and haven’t focused on selling insurance.”
However, the long term effects look to include more than just a positive societal change.
Shotgun has worked hard to get “genuine engagement” from young drivers with its rewards based system, says Newson-Smith. The app is available to any driver aged 17-25 – including non-Direct Line customers – and has therefore grown an audience of young people with an established brand relationship.
“Now that we’ve got the app up and running, we’re working on an upgrade to make it as effective as possible, so that we are ready to also have a conversation about insurance once people have completed their 1,000 miles of driving.”
However, reviews of the app are currently mixed, with users praising the concept but demanding necessary bug fixes, so the upgrade will need to come sooner rather than later.
Meanwhile, Direct Line’s marketing director, Claire Sadler, drew upon Shotgun as an example of how brands can successfully use the “headache” of GDPR to build a transparent brand effectively.
“In the long term you’re left with a group of customers who want to talk to you as a brand,” she said.
“[Shotgun is] a great example of how you can use personal data to do good, in a way that’s relevant to the brand, and in turn creates a more positive relationship for brands with both customers and prospective clients.”
It’s something a bit better than banner ads following you around the internet, anyway, she said.