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AA Insurance

Turning data into dollars

Turning data into dollars for AA Insurance.

When New Zealand’s most trusted insurer wanted to meet audacious growth aspirations to increase share of household insurance, they did the unexpected.

Together with the team at Twenty, AA Insurance revolutionised they way they managed customers. They built a lifetime value framework, segmentation and a contact programme that managed customers based on their individual potential value, needs and moments of consideration.

By engaging customers in a far more informed conversation, this disrupted an industry that was intensely focused on short-term tactical returns from promotional campaigns.

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Believing competitors did not, at the time, have the capability or will to build a programme that used such rich data, a clear point of difference was created. AA Insurance was seen to value their customers’ future, building confidence that we had their back and we would look after them.

Key to success was finding cost-effective ways around the limitations of legacy databases, enabling a single customer view and the creation of a complex, comprehensive Customer Lifetime Value Segmentation.

For the first time, AA Insurance could clearly see what a customer’s true value was now, but vitally the potential for that customer over time. This even included an individual view of the risk of each customer defecting. Applying this insight provided the basis for a comprehensive tailored communications programme to manage each customer based on their potential opportunity.

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Carefully managed control groups were used to test, refine and improve communications to lift performance over time.

Customers responded. The results delivered significant uplifts in risk-per-customer (the average number of policies held by each person), customer retention, sales and ultimately profitability. The Return on Investment from the programme proved the value of applying data insight to drive customer strategy and communications.

Providing further validation of the power of this approach, the programme has been highly recognised. It achieved two golds, a silver, a bronze and the big one – the Supreme Nexus – at the Marketing Association’s 2015 NZDM Awards. It has also now been recognised with more silverware with a gong at the 2015 AMES (Asian Marketing Effectiveness and Strategy) Awards.

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Twenty CX
3 Glenside Crescent, Eden Terrace
Auckland 1010
New Zealand

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