How understanding customer needs and behaviour turned insight into actionable strategies which improved sales, profitability and the customer experience.
A large French mutual asked us to help improve an AD upgrade campaign where results were declining and the existing ‘double your cover’ offer was no longer meeting customers’ needs.
Optimising the offer not only improved sales and profitability but also increased customer experience satisfaction
Using sales data, models were developed to calculate best premium upgrade offers for different customer segments. To gain a better understanding of the relationship between willingness to buy and the offer amount, propensity scores helped determine the offer made. The highest deciles were offered up to three times more cover, while the lowest deciles received a 50% of cover offer.
An increase in premium of 45%.
Customers in low-response deciles purchased more cover. Overall, optimising the offer not only improved sales and profitability but also, increased customer experience satisfaction.