DataDistilleries, a Dutch provider of predictive real-time analytical solutions, announced that Corona Direct, Belgium‘s second largest direct insurer, has reported a reduction of 25 per cent in the cost of acquiring customers through marketing campaigns using its software, and achieved a ROI in six months.
Before implementing a campaign, Corona uses DataDistilleries ‘ software to automatically identify groups that are likely to respond and to perform a profit-cost analysis, balancing growth targets against profit margins. According to the insurer, over 2002, this resulted in a 25 per cent reduction of campaign costs and an increase in product sales.
“Two years ago we were mailing 4 million letters annually at an average cost of 0,50 euros per unit. In the past, the cost of securing new customers exceeded revenues by almost 50 per cent. We decided on a strategy that would help us mail less while maintaining our prospect conversion rate, so we looked for software that would allow us to achieve this goal, explains Philippe Neyt, commercial director of Corona Direct.
Although estimates of overall growth in the CRM market vary widely, the underlying issue with CRM appears to be one of customer satisfaction and ROI. Analysts agree that the real bottom-line value comes from the intelligence that can be added to operational CRM systems.
“Corona Direct is a clear demonstration that even in the current market companies can adopt a profitable growth strategy. The key to success is to make customer needs and profitability the focal point of marketing and sales strategies.
Adding predictive analytics to existing marketing, call centre and internet environments does produce tangible results, generating a return on previous investments in CRM and data warehousing, states Marcel Holsheimer, president and founder of DataDistilleries.
Corona Direct plans to use DataDistilleries ‘ analytics software to create profitable retention campaigns focusing on high value customers, increasing cross-selling in call centres, and to detect insurance fraud.