DMix impact surveyin Insurance sector

1

KEY MESSAGES

Source: Team analysis

The results presented in this document were obtained during a pilot in the insurance sector (for company A); pilot was run in two phases: first phase without ATL campaign, second with ATL campaign (TV, radio, press, internet)

The results of the market research show that DM is a well suited medium to support calls, as well as to build brand image.

– DM increases the acceptance of calls, from 51 to 58%. This leads to a positive ROI for DM + call vs. call alone.

– Moreover, due to fast decrease over time of the DM recall rate, calls should closely follow reception of DM.

– DM helps to build brand image (10% increase in number of people agreeing with brand statement due to DM)

– DM has a better recall rate than ATL media

2

PILOT SETUP PHASE 1 – NO ATL

Source: Team analysis

Group 4

Call

Group 4

Call

Group 2

National DM (with regional customization) referring to branch + call

Group 2

National DM (with regional customization) referring to branch + call

Group 1

National DM referring to branch

Group 1

National DM referring to branch

Group 5

Reference group (exposure to no media)

Group 5

Reference group (exposure to no media)

351 150

350 316

xNumber of market research interviews

Total of 1167 interviews

3

PILOT SETUP PHASE 2 – ATL

Source: Team analysis

Group 4

Call

Group 4

Call

Group 2

National DM (with regional customization) referring to branch + call

Group 2

National DM (with regional customization) referring to branch + call

Group 1

National DM referring to branch

Group 1

National DM referring to branch

Group 5

Reference group (ATL only)

Group 5

Reference group (ATL only)

353 151

349 328

xNumber of market research interviews

Group 3

National DM referring to website

Group 3

National DM referring to website

352

Total of 1533 interviews

4

KEY MESSAGES

Source: Team analysis

The results presented in this document were obtained during a pilot in the insurance sector (for company A); pilot was run in two phases: first phase without ATL campaign, second with ATL campaign (TV, radio, press, internet)

The results of the market research show that DM is a well suited medium to support calls, as well as to build brand image.

– DM increases the acceptance of calls, from 51 to 58%. This leads to a positive ROI for DM + call vs. call alone.

– Moreover, due to fast decrease over time of the DM recall rate, calls should closely follow reception of DM.

– DM helps to build brand image (10% increase in number of people agreeing with brand statement due to DM)

– DM has a better recall rate than ATL media

5

CORRELATION BETWEEN SUCCESSFUL CALLS AND PROGRESSION OF CUSTOMERS ALONG PRODUCT FUNNEL

Received call but did not accept conversation

95 11010 10 1414

Received call and accepted conversation

95 1330 43433131

Percentage of respondents

Increasing the

acceptance rate of

calls increases

Consideration to

buy insurance

products

Intention to contact

company A for more

information

* Only respondents recalling call Source: Market research on 2700 customers (1167 without ATL, 1533 with ATL); Team analysis

Product funnel – insurance products of company A*

"Would you consider company A today to subscribe your insurance?"

"Did you contact company A regarding your insurance or do you plan to do so?"

Awareness Consideration to buyIntention to contact company A for information

"Do you know company A as insurance company?"

(142*)

(172*)

(x) Total sample

size

X 3 X 13

DISGUISED CLIENT EXAMPLE

6

IMPACT OF DM ON CALL ACCEPTANCE

Call funnel*

Without DM

With DM

* Only respondents recalling call Source: Market research on 2700 customers (1167 without ATL, 1533 with ATL) ; Team analysis

Received call Accepted call

100 51

100 58

5151

5858

Percentage of respondents

"Do you remember receiving a call from company A during last two weeks? Did you take the call?"

DM strongly increases

the acceptance of

calls, helping to drive

customers along the

product funnel

+ 14% accepted calls

(x) Total sample

size

(144*)

(170*)

DISGUISED CLIENT EXAMPLE

7

91

122

100

Short tem impact –advertised product

Short tem impact –cross-selling

Long term impact

Total incremental margin

DM costs

Total campaign return

259

ROI (Call + DM vs. call alone)

259%

DM AS SUPPORT TO CALLS HAS A POSITIVE ROI COMPARED TO CALL ALONE

* Based on 10 year NPVSource: Market research on 2700 customers (1167 without ATL, 1533 with ATL) ; Team analysis

Incremental margin*/costs induced by DM; index

DM as support to calls has a positive ROI of 259%, taking into account short term impact of advertised product, short term impact of cross-selling and long term impact

Only considering short term impact of advertised product gives a positive ROI of 46%

359

146

8

KEY MESSAGES

Source: Team analysis

The results presented in this document were obtained during a pilot in the insurance sector (for company A); pilot was run in two phases: first phase without ATL campaign, second with ATL campaign (TV, radio, press, internet)

The results of the market research show that DM is a well suited medium to support calls, as well as to build brand image.

– DM increases the acceptance of calls, from 51 to 58%. This leads to a positive ROI for DM + call vs. call alone.

– Moreover, due to fast decrease over time of the DM recall rate, calls should closely follow reception of DM.

– DM helps to build brand image (10% increase in number of people agreeing with brand statement due to DM)

– DM has a better recall rate than ATL media

9

Source: Market research on 1533 customers; Team analysis

Due to fast drop of DM recall, follow up calls should optimally be given within a few days after reception of DM Level of recall after 2

weeks is still comparable to typical TV recall rate (15-20%)

Days5-6

Days7-8

Days8-10

Days11-12

Days13-14

Days15-16

53%(15)

38%(106)

29%(92)

20%(134)

Total number of customers having received DM and interviewed

DM RECALL RATE STRONGLY DECREASES AFTER ONLY A FEW DAYS

(y)DM recall rate

Percentage of respondents; Customers receiving mailing

Day 1

DM received

60%

Aspirational target

30%(150)

17%(105)

DISGUISED CLIENT EXAMPLE

10

KEY MESSAGES

Source: Team analysis

The results presented in this document were obtained during a pilot in the insurance sector (for company A); pilot was run in two phases: first phase without ATL campaign, second with ATL campaign (TV, radio, press, internet)

The results of the market research show that DM is a well suited medium to support calls, as well as to build brand image.

– DM increases the acceptance of calls, from 51 to 58%. This leads to a positive ROI for DM + call vs. call alone.

– Moreover, due to fast decrease over time of the DM recall rate, calls should closely follow reception of DM.

– DM helps to build brand image (10% increase in number of people agreeing with brand statement due to DM)

– DM has a better recall rate than ATL media

11

INITIAL POSITION OF COMPANY A vs. COMPETITORS ON VARIOUS DIMENSIONS

'To which extend do you agree with the following statements concerning the following insurance companies?' Rating on a scale 1 to 5*; % Completely or somewhat agree (% of 4 or 5)

* 1: I completely disagree, 2: I somewhat disagree, 3: I neither agree nor disagree, 4: I somewhat agree, 5: I completely agreeSource: Market research on 1167 customers; Team analysis

0

20

40

60

Professional service

Good reputation

Original advertisement

Wide range of insurance products

Products easy to understand

High compensation level

Excellent value for money

Flexible payment options

Products customized to my needs

Easy to contact

Company A

Company B

Company C

Company D

Dimensions with biggest gap compared to competitors

Company A rating from customers receiving neither DM nor call

DISGUISED CLIENT EXAMPLE

12

IMPACT OF DM ON PERCEPTION OF COMPANY A ON VARIOUS DIMENSIONS

'To which extend do you agree with the following statements concerning company A?' Rating on a scale 1 to 5*; % Completely or somewhat agree (% of 4 or 5)

0

20

40

60

Professional service

Good reputation

Original advertisement

Wide range of insurance products

Products easy to understand

High compensation level

Flexible payment options

Products customized to my needs

Easy to contact DM**

No media

* 1: I completely disagree, 2: I somewhat disagree, 3: I neither agree nor disagree, 4: I somewhat agree, 5: I completely agree** Based on respondents in Group 1 recalling DM

Source: Market research on 1167 customers; Team analysis

Excellent value for money

Customers interviewed within 10 days after DM

reception

DISGUISED CLIENT EXAMPLE

13

POSITION OF COMPANY A vs. TOP COMPETITOR AFTER DM

'To which extend do you agree with the following statements concerning the following insurance companies?' Rating on a scale 1 to 5*; % Completely or somewhat agree (% of 4 or 5)

0

20

40

60

Professional service

Good reputation

Original advertisement

Wide range of insurance products

Products easy to understand

High compensation level

Flexible payment options

Products customized to my needs

Easy to contact

* 1: I completely disagree, 2: I somewhat disagree, 3: I neither agree nor disagree, 4: I somewhat agree, 5: I completely agree** Based on respondents in Group 1 recalling DM

Source: Market research on 1167 customers; Team analysis

Excellent value for money

Company A with DM**

Leading competitor

Customers interviewed within 10 days after DM

reception

DISGUISED CLIENT EXAMPLE

14

KEY MESSAGES

Source: Team analysis

The results presented in this document were obtained during a pilot in the insurance sector (for company A); pilot was run in two phases: first phase without ATL campaign, second with ATL campaign (TV, radio, press, internet)

The results of the market research show that DM is a well suited medium to support calls, as well as to build brand image.

– DM increases the acceptance of calls, from 51 to 58%. This leads to a positive ROI for DM + call vs. call alone.

– Moreover, due to fast decrease over time of the DM recall rate, calls should closely follow reception of DM.

– DM helps to build brand image (10% increase in number of people agreeing with brand statement due to DM)

– DM has a better recall rate than ATL media

15

DM HAS A MUCH BETTER RECALL RATE THAN ATL MEDIA

Percentage of respondents

* Customers having received DM (groups 2, 3, and 4)** Customers interviewed after beginning of TV campaign

Source: Market research on 1533 customers; Team analysis

"Do you remember having seen or heard over the past month an ad concerning company A insurance products? Where?" "Do you remember having received over the past 2 weeks a

letter concerning company A insurance products?“ “The letter / ad showed …. Do you remember it now?“

1

4

5

7

13

6

14

0

DM

TV

Poster

Press

Radio

Internet

Media recall rate

Average recall rate over the 20 days of market research; 32% recall rate in the first 10 days following DM reception

(x) Total sample

size

(1054*)

(836**)

(1533)

(1533)

(1533)

(1533)

27

13

Unaided recall (no content description)

Aided recall (content description)

Aided recall not tested for these media

DISGUISED CLIENT EXAMPLE

16

More details ?More survey results ?

Contact us at 022 011 111and ask for a DM specialist