US-based technology company, Updater, Inc. (ASX:UPD), had a strong quarter on the back of ongoing penetration of the US mover market and strong validation of its product from its pilot program with US insurance major, Liberty Mutual.
Earlier in the quarter, Updater announced it had surpassed the tipping point of market penetration for its product by processing just over 7% of all home moves in Q4 of CY16. It has a CY17 target of 15% market penetration and with its current trajectory, we see this goal being achieved with ease.
The pilot program with Liberty Mutual clearly demonstrated that ‘pre-movers’ exposed to Updater communications were more likely to purchase insurance products than those not exposed to these communications. The rate of purchase uplift was statistically significant at around +93%, and this is expected to be higher with a product targeted at reducing the churn rate for existing customers, and the uplift rate can be stated with 95% confidence (with results independently audited). One of the reasons this result is so appealing to the market is that insurance is but one vertical in a suite of verticals Updater will ultimately target including banking, utilities, big box retail and pharma, cable, satellite and internet.
With further updates on market penetration and pilot programs expected in the present quarter, we remain excited by the prospects of Updater in FY18 and beyond.
Updater offers home movers a service to complete tedious and time consuming tasks efficiently (such as updating/changing address) at the same time allowing businesses to communicate with these same consumers in a timely manner. (VIEW LINK)