LONDON, UK - 28 Oct 2010: Specialist over 50s insurance provider RIAS has exceeded all its expectations for marketing efficiency improvement by using IBM SPSS predictive analytics software.
RIAS, part of Ageas (UK), provides home, car and travel insurance to the over 50s and has approximately one million customers across the UK.
By applying a predictive analytics model to analyse customer data such as demographic and known preferences, RIAS has been able to cut data waste and improve the efficiency of its multi-channel marketing campaigns.
Using customer insight to drive marketing operations, the IBM SPSS software has helped to deliver more personalised content as part of RIAS' direct mail, inbound, outbound and web campaigns.
Previously, RIAS contacted its customers through direct mail and telephone, a strategy that worked well for the company in a market with little competition. However, campaign selection relied on a marketeer's own knowledge and a spreadsheet system, meaning there was little attention to segmentation. This led to customers being contacted multiple times with information that was not always relevant to them and resulted in ROI dropping as competition in the sector intensified.
When searching for a solution to this problem, RIAS' main aim was to find a way of targeting the right customers with the right product at the right time whilst retaining the best value customers. For example, knowing which customers are likely to need specialist insurance for a skiing holiday based on past behaviour. By analysing its historic data to discover trends and patterns through IBM SPSS' predictive analytics software, the profitability of acquisition campaigns has grown in some cases by 20 per cent and efficiency has increased.
"When we started to use SPSS' predictive analytics software we hoped to cut spending in some campaigns by 20 per cent - to be able to achieve this and much more is extremely encouraging, said Frank Abu, modelling and analytics manager at RIAS.
"ROI on the software investment was achieved in six months and we now have a multi-channel, segmented, contact strategy that is streamlined and much more effective than what we were doing before."
You can access a video interview with Frank Abu of Rias by clicking here.
Colin Shearer, predictive analytics strategist at SPSS, an IBM Company
added: "In an increasingly competitive marketplace, it's imperative that RIAS ensures that it stands head and shoulders above everyone else. The fact that it is making its voice heard while increasing profitability and cutting marketing spend is testament to how predictive analytics can have a real impact."
NOTES TO EDITORS
About SPSS, an IBM Company (http://www.spss.com.)
IBM SPSS' Predictive Analytics Software spans a complete portfolio of solutions - data collection, statistics, modelling and deployment - captures people's attitudes and opinions, predicts outcomes of future customer interactions, and then acts on these insights by embedding analytics into business processes. IBM SPSS Solutions address interconnected business objectives across an entire organisation by focusing on the convergence of analytics, IT architecture and business process. Commercial, government and academic customers worldwide rely on IBM SPSS technology as a competitive advantage in attracting, retaining and growing customers, while reducing fraud and mitigating risk.
IBM has invested more than $11 billion to build an analytics portfolio, which includes more than 20 acquisitions. In addition, IBM has assembled 6,000 analytics consultants with industry expertise, and opened a network of seven analytics centres of excellence.
RIAS was established in 1992 and is a specialist award-winning provider of insurance products for the over 50s age group.
Part of Ageas (Insurance UK) Limited, RIAS has nearly a million motor, home and travel insurance customers and employs over 1,100 people across two UK sites. RIAS negotiates with a panel of insurers to secure competitive, value for money products.
As a leading provider of award-winning personal and commercial lines insurance solutions in the UK, Ageas has a successful customer-centric strategy, founded on aligning its activities to how customers want to buy insurance, combined with delivering high quality products, manufactured at costs better than market norms.
Ageas recently changed its name from Fortis. This change reflects Ageas' status as a stand alone international insurance group, following the disposal of its banking assets in 2009.
Insuring in the region of 7.6 million customers and working with a range of partners, Ageas is recognised for delivering consistent and high-quality customer experiences. In 2009, its non-life profit before tax and interest was £29 million and its non-life GWP was £805 million.
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