Case Study: Corona Direct

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
© Copyright IBM Corporation 2010
Related Resources
- You are sitting on a huge amount of data but…Read more >>
- Creating a game plan to sharpen your digital edge -…Read more >>
- Watch this recorded webinar where our two outstanding speakers Tony…Read more >>
- Insurance company increases long-term customer profitability by 20 percentRead more >>
- Today’s consumer companies like Amazon and Netflix are using the…Read more >>
- The journey that a customer takes with your company is…Read more >>
- Predictive Analytics is critical in today's marketplace. Proactive, real-time Loyalty…Read more >>
- This Infographic summarise Forrester's study: "From Insight To Action: How…Read more >>
- Significantly lifting incremental spend with tailored promotions for loyalty card…Read more >>
- Designing better, safer, more personalized automobiles with big data analytics.Read more >>
- Leading bank uses IBM SPSS predictive analytic solution to lower costs…Read more >>
- Learn how your organization can use customer analytics to understand…Read more >>
- Addressing Customer Satisfaction issues in Real Time. Using Customer Feedback…Read more >>
- ANZ Bank leverages IBM Big Data & Analytics to gain…Read more >>
- DekaBank improves individual customer contacts - Marketing mutual funds more…Read more >>
- Personalizing offers to meet customers’ specific banking needs raises savings…Read more >>
- Union Investment achieves precision-targeted marketing - Gaining predictive insight into…Read more >>
- Fiserv, a leader in the financial services industry, is using…Read more >>
- First Tennessee Bank Sharpens Marketing Focus with Predictive AnalyticsRead more >>
- Presidion accelerated this organisation’s advanced analytical capability providing a value…Read more >>