TARGET MARKETING
Brief
Many companies focus their marketing efforts on distribution and product development; this case study shows the power of focusing on the end consumer and target marketing. This Fortune 500 client was seeing stagnating sales in its life and annuity sales division. The goal was to get sales back to its 10% annual growth rate target. The company had been relying on key distribution partners to identify growth opportunities.
Solution
Priority Integrated Marketing's segmentation and marketing strategists proposed a consumer segmentation study to understand where it had been performing well, and uncover market opportunities it could capitalize on. Our team's segmentation methodology is unique in that it combines customer profitability with traditional marketing segmentation/penetration studies. We constructed a profitability model from the insurer's system to assign "Net Present Value" of profits to each client. We also appended data from leading list vendors to develop insights into the demographics and behaviors of each client. The most significant marketing change that resulted from this study was to develop a targeted approach to the mid-upscale retired market that included new sales concepts, collateral and a direct mail campaign.
Results
Within one year of program launch, sales to the mid-upscale retired market increased six-fold. Overall sales were up more than 20%, with an increase in profitability of close to 25%. Each program market niche saw a significant sales increase.
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