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Michael Miskelly
December 12, 2019

Creating choice through product tiering and brand differentiation


The motivations of consumers shopping for car insurance vary drastically. As a result, giving targeted consumers a range of choices through different levels of cover or brands should be an unmissable opportunity.


Being a compulsory purchase, some are just looking for the cheapest product available. Others will see their car as a prized asset and are looking for cover they can trust and rely on. Some may be more persuaded by certain aspects of the cover, others turn their heads for a giveaway or have a better recall of brand advertising. A brand portfolio can cater to those varying needs.

Priced smartly, a single company can present consumers with a full range of choices while barely scrolling past the 5th result on a price comparison results page. And don’t be mistaken, the potential of brand portfolios goes far beyond a blunt instrument to simply block out the top positions.

Broadly speaking there are currently two portfolio strategies used on price comparison websites: product tiering and brand differentiation.

How do they compare and why are they used?



Tiering, if done well, presents consumers with a clear choice of cover levels and implicitly signposts why certain products might cost more, or less. It’s a simple formula that can help consumers cut through the complexity and confusion of buying car insurance. It also caters to consumers ranging from the cost-conscious to the cover-conscious.


  Example pricing
Brand A Essentials £90
Brand A Classic £100
Brand A Premier £110


Brand differentiation

Brand differentiation is more subtle. Price point and cover are nearly identical so you’re offering consumers the opportunity to choose a brand they prefer – potentially crucial for the consumer looking for a provider they feel they can trust. That could be because they recognise the brand, or because they feel a sense of affinity, familiarity or even security with making that choice, or simply because they prefer the aesthetic and tone of the branding.



  Example pricing
Brand 1 £99.97
Brand 2 £100.01
Brand 3 £100.06


Getting strategic

Simple tiering and differentiation merely scratch the surface, however. There a multiple variants and blends of tiering and differentiation with the opportunity to create smart choice architecture and maximise conversion potential.

There are multiple strategic levers available to pull, including:

  • Tiering up or down
  • Blending both tiering and differentiation
  • Strategic positioning of the strongest brand in the pricing hierarchy
  • Deploying specific products for target segments.

All of these have one thing in common: increasing brand exposure and the likelihood of conversion.

Optimise your competitive position in a fast-moving market

Market View gives you a uniquely comprehensive understanding of market pricing behaviour within the motor insurance industry. Using brand visible data, it contains actionable insight which will enable you to make informed decisions around pricing strategy, based on your current competitive position across the whole market including aggregators.


Learn more


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