Crowdheroes

Crowdheroes digitalizes the German insurance industry and thrives to become the leading provider for insurance offerings on social networks. With our self-developed auction model and crowdheroes app customers from now on can choose how much they want to pay for their insurances. With the strength and buying power of large communities, customers can save up to 30% on their insurance premiums.

Economic rationale / Business Model

We sell insurances for average 20% less than traditional insurances. Therefore we have lower profit per customer. By average, we earn 15€ per contract and year. Customers stay 7 years with their insurance per average, so the Lifetime Value per customer is 105€. 
At the same time, we reduce our Marketing and Customer Acquisition Cost by a great margin due to our focus on Social Media. The customers have a great incentive to share the auctions with their social networks in order to achieve the minimum amount of participants. Our CAC is by average at 15€. The LTV/CAC ratio is at a promising 7.

Financing details

Project financing secured: EUR 0.900 million (20 %)

Financing source: Private

The promoter has applied or has the intention to apply for EU or EIB financing related to this project

Existing or potential bottlenecks for the realisation of the project / Potential risks

The risks for now is that we are not able to establish enough trust with our customers and therefore cannot reach as many customers as planned. Our main goal for the moment is therefore to establish trust where we can. We cooperate with big reputable insurance partners as well as big communities on Facebook for instance to reach the customer.

Project additional information

How does it reduce costs, increase revenue, or provide access to new business or operating models?
1. We negotiate bulk orders with insurance companies, so we reduce the costs for around 15-20 %
2. We reduce our commissions from average of 25 % to 15-10 % and reduce the costs for the customer to a total saving of ca. 30 %
3. Also, we reduce our CAC by using our own technology “Reverse auction” on social networks and using the virality effect.