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WINTERTHUR COMPETES ON LOYALTY, NOT
PRICE
Retaining valuable customers and increasing
response rates with SAS®
With the advent of the
Internet age, the rules have changed in the insurance business. There is much
greater price transparency, customers are more likely to shop around for the
best deal, contracts are shorter, and customer turnover is at unprecedented
levels.
 Quotation |
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“We simply would not be able to base our
marketing on customer insight if we did not have SAS. We built our first
customer insight models in 2001, and it is making our marketing more effective
every year. Investment in customer insight is the best possible investment in
an insurance company’s future.”
Marcel Stettler
Head of
CRM Operations,
Winterthur |
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As the No. 1 composite insurer in
Switzerland, Winterthur decided it would be a mistake to compete on price
alone. “We decided to focus on delivering superior service and claims
handling to our best customers,” says Marcel Stettler, Head of CRM
Operations at Winterthur.
But what is a “good” customer?
“From a marketing and business development point of view, it is the
ranking in the context of a campaign that’s of critical interest, not the
absolute current value,” says Stettler.
Approximately 22 percent of
Winterthur customers generate 80 percent of value. So the next challenge was
how to focus marketing efforts. “You need to know which customers are
likely to leave for the competition and which are likely to buy other
products,” says Harper. Analysis with SAS enabled Winterthur to identify
several priority groups for each campaign. The results to date have been
impressive. “On a selection of the best 50 percent of prospects, we
typically get an increase in response rates in the order of 25 to 50
percent,” says Stettler.
Managing customer loyalty is even more of
a fine art. Having identified the customers who are at risk and put the
relevant information in front of the sales agents, Winterthur marketers have to
work out how best to approach them. Agents are impressed by the strategy.
“The next step is to put together packages that make the sales agents feel
really confident that they can approach valued customers on an individual
basis, one that emphasizes both the rational and emotional advantages of
staying with Winterthur,” says Stettler. |
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Business Issue
Measuring long-term value of
customers and identifying best prospects for retention and cross-sell
programs.
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Solution
Data integration and customer intelligence
to give a holistic view of the customer and support intelligent marketing
activities.
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Benefits
Response rate increase of up to 50 percent
on direct marketing programs, closer relationships with key customers and sales
agent satisfaction.
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Next Steps
Winterthur is using SAS® Customer
Intelligence to identify more personalized actions to keep its best customers
loyal – and to increase share of wallet.
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