Lab360 created a complex, comprehensive database and combined it with well-tested offer and message tactics to bring in unprecedented results. 

 

The Brief

IAG is the leading general insurance provider in New Zealand, with 30% market share across its leading brands, State and AMI. Mitigating customer churn and attracting new clients is a core priority so they tasked Lab360 with developing an efficient acquisition strategy that would acquire new leads without cannibalising their existing customer base. 

The insight

We needed to develop a cost-effective approach to new customer acquisition. Mass media had the reach – but with IAG’s market domination it just didn’t make sense. DM has a reputation of poor ROI for cold acquisition, but we knew it could work if we targeted it well enough. Quality lists with relevant segmentation are poor in New Zealand, so we’d have to forge ahead and form our own complex, comprehensive list from scratch. needed to develop a cost-effective approach to new customer acquisition. Mass media had the reach – but with IAG’s market domination it just didn’t make sense. DM has a reputation of poor ROI for cold acquisition, but we knew it could work if we targeted it well enough. Quality lists with relevant segmentation are poor in New Zealand, so we’d have to forge ahead and form our own complex, comprehensive list from scratch.

The solution

The answer was to take a map of New Zealand and start by identifying all the current IAG customers. Of the remainder, we would ensure that they owned their own home; that they could afford insurance; and finally identify which brand (State or AMI) those prospects were more likely to identify with. We created this custom-built database with a savvy combination of NZ Post Delivery Point Identifiers, Census data, mortgage lodgement figures and car ownership information.

Once we had our best possible prospects for acquisition lined up, we tested variables such as offer, format, message and propensity modeling solution, to come up with the strongest combination for our DM, and rolled the offer out. 

The results

This revolutionary strategy brought in big results: policy sales in the campaign period increased by 17% compared with the previous four months, resulting in an overall ROI of over 600% – an outstanding result in anyone’s books.