How the addition of value-added benefits drives growth among 3 million customers of one Chinese bank – and wins awards for product innovation.

Overview
A major Chinese bank looked to ReMark to enhance their product offer and improve customer satisfaction. The bank, in partnership with ReMark since 2008, had been offering RMB 10,000 AD&D free for one year to credit card customers via a series of direct mail campaigns over a 3 year period.

Although results to date were good, the bank was eager for product innovation which would increase response and counter the inevitable list-fatigue affecting their database of more than 3 million eligible customers.

This successful collaboration was recognised by the industry, winning the Financial Services Innovation Award

Strategy
Two new product variations were developed jointly by ReMark and the bank: the addition of a Hospital Accident benefit and an SOS benefit (offering emergency evacuation with global medical care and services) to create a 3-way test:

  • Control: AD&D + Double Public Transport + Triple Aviation Accident + Credit Life
  • SOS test: AD&D + Triple Public Transport/Aviation + Triple SOS + Credit Life
  • HAP test: AD&D + Triple Public Transport/Aviation + HAP + Credit Life

Result
The SOS test achieved 22% more response than the Control (1.64% v 1.34%) and 24% more than the HAP. It also generated a higher average annual premium than the Control (RMB 994 v RMB 969).

The SOS product was subsequently rolled out in 14 provinces in China throughout 2011.

Insight
Customers need leadership. You can help them by managing cues for optimising product development. This successful collaboration was recognised by the industry, winning the Financial Services Innovation Award at the 2009 China International Financial Exhibition.