Transcript DIRECT SBU ORGANIZATION - JCG Group Ltd

Creative Testing Case Study:
Amica Insurance
September 15, 2008
1
Agenda
•
Amica Overview
•
RPM Direct Overview
•
Creative Testing Approach
•
J.D. Power Award
•
Results-You Vote
2
Amica Overview
•
1907 – Focus on service
•
Direct Writer – Personal Lines Insurance
•
38 Branch Offices & Call Centers
•
Auto, Home, Condo, Renters, Marine,
Umbrella, Life and Annuities
3
Amica Overview
•
Referrals – Primary source of growth
•
Marketing – A relatively new activity
•
Customer profile/target
4
RPM Direct — your key to direct success…
R4
P
M
Response
Revenue
Risk
Retention
Profitability
Marketing
5
RPM Direct
The Turnkey, Outsourced Solution for Highly
Targeted, Profitable, Direct Market Auto
Insurance Customer Acquisition.
RPM targeting techniques have driven
in over $1.5 billion of profitable direct
auto insurance premium.
6
A. Overview
RPM Proprietary Methodology
• Methodology developed over the past 12 years.
• Employs a measure of Lifetime Customer Value to target
each marketing prospect.
• RPM builds discrete multivariate scoring models on the key
drivers of profitability: Response, Conversion, Revenue,
Risk, and Retention.
• Proprietary methodology integrates multi-dimensional
scoring models into a measure of Lifetime Value for each
prospect.
• Customized for each client.
7
RPM Direct — Database Marketing Model
Names
Credit
Demos
Regression
Models:
Prospect
Database
•Response/
Conversion
•Revenue
•Risk
•Retention
Solicit:
PLV
Targeting
•Mail
•Phone
•E-Mail
Phone Center/
Website
•Underwrite
•Sell Product
X Date
Events
Responder
Database
8
Capture
Responder
Data
Product
Delivery
Creative Testing Approach
Champion vs Challenger: Test new approach against
existing control position.
• Select adequate sample size to produce
meaningful results.
• Construct sample to ensure similar characteristics
of test and control samples.
• Adjust tests for cost differences.
• Experience and judgment still play a key role.
9
Amica’s Creative Philosophy
• Consistent with company image and culture.
• Consistent with current customer profile.
• “Savings” not primary focus of advertising.
• Do not try to appeal to all prospects.
• Concepts successful in direct mail may be
useful in mass media and in sales material.
• Amica aggressively tests new creatives each
year.
10
J.D. Power Award
11
J.D. Power Award
• How does emphasis on the J.D. Power award in the
creative affect direct mail performance?
• What would happen if we did not mention the
award?
• What would happen if we increased emphasis on
the award?
• What happens when you make the award the main
copy point and USP of a direct mail kit?
12
Testing Objectives – New Creatives 1 & 2
Objectives:
• Design new creative without plastic card.
• Design new challenger package to beat
control kit.
13
Important Rate Information Kit Control
14
New Creative Test 1: Eligibility Certificate
15
Results
Response Index
110
100
100
90
83
80
IRI
Eligibility Certificate
Control kit beat Eligibility Certificate kit
16
New Creative Test 2: Rate Notice Kit
17
Results
Response Index
120
110
110
100
100
90
80
IRI
Rate Notice
Rate Notice kit beat the control
18
Testing Objectives – Control variations 1&2
Objectives:
• Test for value of the J.D. Power award insert.
• Test a J.D. Power card in place of the control
card, increasing emphasis on award.
19
Important Rate Information Kit Control
20
Test: Remove J.D. Power Insert
21
Results
Response Index
110
100
100
94
90
80
IRI
IRI without J.D.
Power Insert
J.D. Power Insert improves performance.
22
Test: Control Card vs JD Power Card
23
Results
Response Index
110
100
100
90
80
80
70
IRI
IRI with J.D. Power
Card
Replacing the control card with the J.D. Power
card does not improve performance.
24
Testing Objectives – New Creatives 3 - 6
Objectives:
• Design new creatives that emphasize the
J.D. Power award.
• Test using J.D. Power award as a unique
selling proposition and main copy platform.
25
Before You Pay Kit Control
26
New Creative Test 3: 8 Year Kit
27
Results
Response Index
110
100
100
90
84
80
BYP
8 Year
Control kit beat 8 year kit
28
New Creative Test 4: Invitation Kit
29
Results
Response Index
110
100
100
90
81
80
70
Before You Pay
Invitation
Control kit beat Invitation kit
30
New Creative Test 5: 8 Year Kit
31
Results
110
Response Index
100
100
90
80
70
60
55
50
BYP
8 Year (version 2)
Control kit beat 8 year kit (version 2)
32
New Creative Test 6: Hot Buttons
33
Results
Response Index
110
100
100
90
90
80
BYP
Hot Buttons
Control kit beat Hot Buttons kit
34
Summary
•
Higher quality kits are worth the price.
•
More of a good thing is not always better.
•
Keep the offer simple
•
Direct mail effective at targeting Amica’s
prospects.
35
Presented By:
RPM Direct, LLC
24 Arnett Avenue
Suite 100
Lambertville, NJ 08530
609-566-7150 x 101
Fax: 609-566-7155
September 15, 2008
36