The Christchurch earthquakes of 2011 had shaken the Kiwi psyche and their faith in the insurance industry. There were many cases of normal Kiwis living in a disaster zone, and complex home insurance claims taking years to solve. Insurance companies were exposed to huge claims and trust on both sides was in short supply.
How could we meet audacious growth aspirations to increase share of household insurance in a chaotic market?
We did the unexpected.
Taking the path of ‘most’ resistance to build a Lifetime value model, segmentation and contact programme that managed customers based on their potential value, needs and moments of consideration, disrupting the industry’s intense focus on short term returns from promotional campaigns.
Knowing competitors did not have the capability or stomach to build a programme that used vast stores of rich data, integrated complex systems and produced personalised communications, a clear point of difference was created. AA Insurance was seen to value their customers future; building confidence we had their back.
Customers responded. In the first 3 months of full implementation the programme has delivered compelling results. Incremental revenue over the natural sales rates delivered an ROI of NZ$18 for every $1 invested. The lifetime value of those sales made in 3 months showed the value in investing in future value. At an ROI of 217:1, the programme has an excellent future.