Revitalizing a Stagnant Life Program
A new client was facing steady program declines that called for substantial action. See how four focused strategies led to a 20% increase in less than one year, and 150% growth since the program's inception.
Several years ago, AGIA assumed responsibility for the marketing and administration of an association's Group Life Insurance program. Prior to partnering with AGIA, the program had fallen into stagnation and a pattern of slow, but steady decline. Substantial action was needed to turn this program around.
AGIA immediately launched a comprehensive effort to revive the program with a variety of strategies that included:
- New creative testing
- Data modeling and segmentation strategies
- New product introductions
- Channel expansion
The current Term Life marketing needed an “overhaul” since most members had seen the same marketing packages and offers for several years. To counter this, AGIA developed new creative packages and modified existing successful marketing packages–all designed to speak specifically to this group's membership about Term Life Insurance.
AGIA analyzed the client's membership demographics and past marketing results to create improved segmentation models. Higher performing segments for Term Life Insurance were identified and became the target for our new creative approach. Concurrently, we identified and removed underperforming segments from future term life marketing campaigns allowing us to maximize the budget. Those members excluded from future term life offers were also analyzed to determine if other products and offers were better suited for their needs or buying preferences.
AGIA also identified and introduced new product lines including Senior Term Life and Emergency Assistance Plus. Tailored to specific age demographics, these new products allowed us to grow the overall program at an impressive rate.
- In less than one year, AGIA successfully grew program participation by 20%.
- In Year Two, program participation grew an additional 60%.
- Since its inception, program participation has grown almost 150%.
Powerful Customer Marketing to Increase Program Growth
A new client was experiencing declining marketing results because the membership had been over marketed with a small number of products. See how our segmentation and customer upgrade strategies led to a 33% increase in program premiums after one year.
When AGIA assumed responsibility for the insurance marketing and administration for this professional association, the client’s program included 4 core product lines. However, these products had been heavily marketed to the membership and acceptance rates had started to decline.
AGIA launched a comprehensive action plan to identify and implement new ways to create program growth. We:
- Analyzed the current customer demographics and purchase preferences. As a result, we identified an opportunity to increase the amount of insurance purchased by existing insureds. Historically, members had purchased very low benefit amounts, especially for Term Life, Disability and Hospital Income insurance.
- Partnered with the insurance underwriter to create and develop new Guaranteed Issue and Simplified Issue upgrade programs.
- Leveraged our proprietary on-bill upgrade software program to identify eligible members and to create a simple and convenient way to increase base coverage via a member's regular bill.
Based on the success of on-bill upgrades, we expanded the program to include on-bill and standalone cross sells of additional products.
- In less than one year 50% of eligible members took advantage of these compelling and convenient upgrades.
- Increased penetration without the significant marketing costs associated with new certificate acquisition.
- After Year One, achieved a cumulative 33% growth in premiums and royalties.
Transforming Current Insureds into Long Term Member Value and Growth
Historically successful marketing programs for a long term AGIA client had produced consistent program growth but were beginning to stagnate. See how a new strategy to cross sell additional products to existing customers increased response rates 100%.
For many years, AGIA had consistently achieved program growth for a long-term client. While traditional direct mail campaigns remained profitable, response rates had begun to decline at the same time the client desired to aggressively increase its program growth goals year over year.
The historical success of our marketing programs had produced a substantial number of current insureds. To continue to grow the program year over year, we designed and executed a new approach to customer marketing. Our “Transactional approach” included variable printing for customized marketing, new streamlined package components, and special messaging that was personalized to each person. By specifically reinforcing our appreciation as a current insured and positioning new product offers as an “add-on” to their existing coverage, we realized dramatic improvements in responses to our marketing offers.
- Achieved over a 100% increase in response rates for current insured population.
- Reduced production costs that allowed funds to be reallocated to mail deeper in other list segments.
- Increased annual persistency by creating additional “stickiness” for insureds who had purchased multiple products