Amica realized the importance of increasing new customer inquiries and revenues, but needed to keep marketing costs down.
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CHALLENGE: Amica Life Insurance Company, a mutual insurer of automobiles, needed to secure customer loyalty in a market that had become increasingly competitive. Amica realized the importance of increasing new customer inquiries and revenues, but needed to keep marketing costs down.
SOLUTION: Although the Internet brought an increase in inquiries, the increases would be unsustainable in the face of rigid budget management and the competitive environment, according to Marketing Manager Ed Naya. The solution was a marketing tool that would be easy for his staff to implement and use, and that would quickly increase inquiries to provide fast ROI. Naya selected Unica's predictive modeling.
BENEFIT: Within three months of running insurance campaigns on the solution, Amica's marketing team was able to score the entire customer base to develop a top five segmentation ranking. This allowed the team to target customers most likely to buy life insurance by changing the criteria it used to select prospects for its offer mailings. Based on results and tests, for instance, Amica determined that those less likely to purchase life insurance were typically single and without children. "We figure that if [this group] has a need for life insurance, a statement stuffer in their auto insurance bill will suffice," Naya says. "Otherwise, they will seek us out."
By adjusting budget expenses, the company surpassed its annual goal of inquiries by 110 percent, reduced marketing costs by 25 percent, and increased revenues. Amica has also expanded its modeling to additional products, including annuities, whole life, and long-term care campaigns. Based on future plans to analyze the customer base, the company intends to focus its efforts even more sharply, concentrating on tailoring the messages and timing of its direct mail campaigns.
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