Insurance company cuts campaign costs through segmentation
An insurance company had as a partner a trade union whose customers were offered group insurance a few times a year. The offer was sent as direct mail, after which the members were contacted by phone to remind them of the offer. The worrying thing was that the number of responses decreased with each mailing. Something had to be done; posting large numbers of items was not a profitable marketing strategy.
Targeting selected residential neighbourhoods
Due to an agreement made with the trade union, the insurance policy in question had to be offered to all members of the union. For this reason, it was not possible to define the target group more accurately using information contained in the Population Information System, for example. Targeting based on age and background was not an option.
The problem was solved by using a residential neighbourhood classification, ACORN, to classify the recipients at a map square level. All members of the union continued to receive an offer, but a more detailed package, including brochures, and a follow-up phone call was only received by those who lived in a sufficiently well-off area.
Savings!
Due to savings in material and telemarketing costs, the campaign was now much more cost-efficient. This shows that the insurance company made the right decision and should continue to make full use of the opportunities offered by segmentation.
