The challenge: The insurance market revolves around the date when insurance policies come up for renewal. In order to retain customers, our client like many insurance brokers, needed to create effective marketing communications.
They wanted our help to identify the customers, which if contacted at the right time with the right offer, could be persuaded to stay. Through the use of uplift modelling we could ensure the retention of their most valuable customers.
Our approach: The nature of the insurance industry means that every time a human interacted with the customer the business lost margin. We helped decide when it would be profitable to have a human or when to automate, without affecting retention.
We built a technical uplift model to predict the incremental impact of a marketing treatment. The complex model was able to refine the contact strategy – focusing resources on ones that could be influenced, and taking care around those who would be more likely to buy if left alone.
The results: Improved marketing effectiveness, as renewals are optimised based on conversion and profit purchase paths. By applying the technique, we identified £20m increased income in a 12-month period with negligible impact on customer attrition.
Over £20-million increase in 12-month profit with negligible impact on customer attrition.
- Good to great insight
- Building a world class insight team
- Taking next best action from theory to practice
- Online v offline, optimising the mix
- Making the right calls
- Right action for the right customer at the right time
- Getting the right Customer Relationship Management (CRM) for your customers
- Keeping customers engaged
- Bringing the customer to the boardroom