From single customer view to lifetime value analysis and churn identification, predictive analytics is empowering insurers to extract the inherent value in their data
An American company was the first insurer to sell car insurance direct to Japanese consumers, instead of via brokers. Over the course of 18 months, the company used multiple media channels for sales promotion to grow their car insurance sales.
The company wanted to understand the real contribution each media was making to sales, to inform their future media spend.
Datamine set out to identify the influence that television and newspaper spend had on sales attributable to other channels.
Datamine built a model to link weekly sales to the weekly spend in each of the five media channels – television, newspaper, magazine, satellite television and direct mail. The model was built to factor in weekly media mix and spend, competitor activity and other ‘environmental’ variables.
The model found a proven link between television spend and direct mail campaigns – they had more impact and higher response rates when there was a television campaign running at the same time.
This assessment enabled the company to clearly see what effect their chosen channels had on sales and allocate their advertising resources, going forward, to align with the most effective channels. This analysis also helped them justify their television spend, because the ROI made their expensive television campaigns viable.
A large multi-national insurance company had concerns about the efficiency of its marketing efforts and approached Datamine to request some ‘exploratory’ work be done. The company wanted to establish the possibility of extracting data from its array of different systems — data which could then be applied to better inform its strategy around brand expansion and customer propositions.
Datamine brought together a host of different systems and data silos into a single data mart – enabling a single customer view and identifying multiple opportunities. One entirely unexpected result was that Datamine uncovered millions of dollars in premiums which had not been charged, even though the policyholders were still being provided full cover.
The $80,000 project returned almost $10m to the company immediately — and provided insights which led the insurer to establish an additional brand and associated product range in the marketplace, while simultaneously improving its foundation business through better targeting and messaging.
An insurance company had marketing activity planned for one of their brands in the SME market. However, a larger proportion of this market had previously been held by another brand of theirs. The insurance company wanted to better understand the SME customer profile of their two brands in order to clearly see the similarities and differences of their respective customer sets and assess whether the planned marketing activity would result in cannibalisation of their brands.
Datamine’s analysis quantified the size of the SME market, determining where the two brands sit within the market so that our client could understand the potential for future marketing activities and identify the best opportunities for the two brands.
Address data was geo-coded so that regions could be identified, and industry identification (ANZSIC subdivision) coding was then applied. Market gross written premium (GWP) was estimated for the number of SME businesses, as well as the average premium for their SME customers (both by industry and region).
This analysis clarified the respective positions that the two brands hold in the SME market and has provided the client with a clear direction for the growth of both brands, reducing potential cannibalisation. The results from this project provided practical and actionable direction to our client and led to a dramatic change in their marketing focus and planned media spend.
Ensuring a sound understanding of the market, this project will generate a huge return for the client - the redirected media spend alone will lead to the project paying for itself within the first year with the budget now being directed towards more appropriate businesses and regions.