Solution Components

• IBM SPSS Predictive Analytics

“Two years ago we were mailing four million letters annually at an average cost of $.50 per letter. We decided on a strategy that would help us mail less while maintaining our prospect conversion rate, so we looked for software that would allow us to achieve this goal. After modeling using IBM SPSS software and then fine-tuning our prospect mailings, we were able to reduce our costs by 30 percent while maintaining new customer conversion rates.”

— Philippe Neyt, Commercial Director, Corona Direct

Corona Direct

Insurance company increases long-term customer profitability by 20 percent

Overview

Corona Direct is Belgium’s second largest direct insurance company. To sustain its current level of growth, Corona Direct’s customer acquisition campaigns needed to be profitable. Historically, the cost of securing new customers exceeded first-year revenues by almost 50 percent.

Business need

To sustain its current level of growth, Corona Direct’s customer acquisition campaigns need to be profitable – that is, first-year revenues generated from new insurance policies should pay for the cost of the acquisition campaign.

Solution

The company turned to IBM SPSS predictive analytics software solutions to efficiently create, optimize and execute their outbound marketing campaigns. Campaign costs were reduced by 30 percent – making them profitable. Additionally, long-term customer profitability increased by 20 percent, product sales rose significantly and payback for the cost of the implementation was achieved within six months.

Benefits

As a result of using IBM SPSS predictive analytics software solutions, the company’s acquisition campaigns are now profitable. First-year revenues cover campaign costs, enabling Corona Direct to sustain its growth strategy.

In addition:

• Campaign costs have been reduced by 30 percent
• Long-term customer profitability has increased by 20 percent
• Product sales have risen significantly
• Payback for the cost of the implementation was achieved within six months

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