Dutch insurance firm FBTO Verzekeringen realized a 29 percent increase in direct marketing campaign profitability using SPSS predictive analytics software, the Chicago-based vendor said yesterday.
FBTO serves 500,000 customers holding more than 1 million car, health, home and life insurance policies. FBTO is part of Achmea Group, one of the largest financial services providers in the Netherlands.
FBTO needed to predict customer behavior and needs and also anticipate customer reactions to special offers. Enabling cross-campaign optimization, PredictiveMarketing from SPSS lets the company determine individual preferences regarding openness to multiple contacts and preferred distribution channels. This lets FBTO select the best offer for each customer instead of the best customers per campaign.
With better allocation of customers across different offers, campaigns have generated 29 percent more profit at the same cost of previous campaigns.
Comparing its previous approach of mass mailings to its new, more targeted approach, FBTO has decreased its direct mailing costs 35 percent.
Using SPSS to better target customers, the company's conversion rate has increased more than 40 percent. FBTO's streamlined customer selection process has resulted in a 500 percent increase in the number of campaigns that can be run, without adding personnel to the FBTO marketing team.