Background
This specialist direct UK insurance broker for the over 50’s with products in Motor, Home and Travel were dependant on outbound telemarketing. But in 2003, with over 700,000 customers, they were looking for 30% year on year growth which would be underpinned by the development of their own brand.
November 2003 saw the roll out of an extended marketing plan that went beyond their existing ad hoc use of direct mail renewals, resolicitations and limited insert activity. The test was carried out exclusively in the retirement press.
The Test – November 2003
The Multi Media Test planned by Tri-Direct consisted of:
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Integrated activity
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Door drops
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Renewal dated mailings
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Magazine Inserts – retirement press only
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Expanded media base
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National Press Ads
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Next Door Neighbour Mailings
Integrating the activity across a one month period with a consistent creative message resulted in the following uplifted response:
• Magazine inserts + 9%
• Door Drops + 16%
• Renewal Mailings + 5.6%
The national press ads were key to building the brand whilst delivering response as they offered frequency of message and vital brand positioning.
The result of strategy was a reduction of 33% on cost per sale on inserts despite the fact that November is a traditionally weak month for insurance renewals and clearly demonstrated that achieving these results through integration would result in an even better outcome during the core months for this market.
The Integrated Solution
Building on the success of ‘03/’04, Tri-Direct was set the following targets:
• To grow motor business by 35% and home business by 15%
• To deliver new customers within required acquisition cost
• To analyse and maximise cost effective media
• To enhance the client’s brand and position in the market with the direct marketing budget available
Thus the integrated multi media platform was expanded in 2004 to include:
• Regional Press Inserts
• National Press Inserts
• Cold Mail
• Advertorials
• Yellow Pages
And 2004 also saw the development in terms of the magazine inserts away from solely relying on the retirement market into the vertical interest sectors. Whilst Tri-Direct's bespoke D2D modelling tool, Paragon, was introduced for door to door campaigns.
Results
Integrating media activity uplifted response across all media, specifically 16% for door drops. Other things we learnt included:
• Coupons are a “must” for the over 50’s market as 45% of response comes via this response mechanism.
• Magazine and National Press Inserts take 6 months to mature in terms of response.
• D2D takes around 10 months to fully mature in terms of response.
• Tri-Direct’s bespoke D2D modelling increased D2D response by 23% and CPS down by 21%.
Summary
For D2D using an integrated multi media plan combined with careful targeting resulted in a 322% increase in activity in 2004. 47% increase in 2005, 7% increase in 2006 and door to door volumes still continue to grow into 2007 by a further 33% (so far).
And at the same time we are continuing to grow this client’s business today.
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