How product development and testing helped a French pension provider counter list fatigue and increase premium income by identifying the customers most likely to buy.

With results trailing off after six years of mailings on a Free AD programme with a leading French pension fund, we were challenged to develop a test pack to counter list fatigue and increase premium income.

In 2006 ReMark tested an AD Annuity product with the younger age group on file with disappointing results. We decided to revise this approach with a test on the senior age group file (60-75 years old) with the offer positioned to compensate for the loss of the deceased’s pension income. (Pension benefits for the surviving partner are reduced to 50%).

Revised creative emphasised upfront tax-free lump sum

  • Forced offer: one lump sum payment of €5,000 and 24 monthly payments of €500
  • Single and joint cover with a joint discount
  • Revised creative to emphasise upfront tax-free lump sum to settle final expenses and monthly installments for ongoing expenses.

The test increased response, average premium and annual premium, while reducing marketing costs considerably.

Response breakdown per age range:

  • Age 60-64 : 2.28%
  • Age 65-69 : 1.46%
  • Age 70-74 : 0.90%.

Of the senior file, those in the lower age range were the best responders, indicating that new retirees are acutely conscious of their reduced income in contrast to older retired people.  We concluded newly retired seniors were more likely to hold outstanding debts and have more bills to pay than older seniors who have adapted to living within their means.