Travelers Insurance, an insurance and financial services provider, recently started a major affinity marketing program with the American Automobile Association (AAA) to offer home and auto insurance to more than 15 million AAA members throughout the country.
AAA has 87 clubs representing close to 33 million people in the United States and Canada. Thirty U.S. clubs are participating in the program, which is called The AAA Advantage Program.
“The programs for all of the clubs will be uniform unless a particular club asks us to customize it in a certain way,” said Kenn Drupiewski, national vice president of personal lines for Travelers Property Casualty. “We are offering personalized products to the AAA members that are discounted to reflect the lower acquisition costs.”
Travelers, Hartford, CT, which insures more than 20 million people in the United States, will offer over-the-phone quotes on auto insurance as well as information on its home insurance plans.
Magazine ads will appear in the 12 AAA publications that are distributed to members. Free-standing inserts also will appear in the magazines. Some AAA members will receive direct mail packages. AAA Insurance offices offering The Travelers insurance will feature posters and “take-one” brochures.
Several parts of the campaign already have begun.
“We have seen higher than a 3 percent response rate in the direct marketing packages that we have sent out,” Drupiewski said. “We are also going to be looking at doing some advertising for the campaign on the Internet.”
The Travelers will be building three databases from this program to refine its preselection process: response, sales and retention.
The Travelers and AAA have had a relationship for more than 20 years but only created ads or campaigns on certain occasions. In November, the companies contacted direct response agency Evergreen Advertising, Middlebury, CT, to create a continuous uniform program that they could use throughout the entire year.
The program has been constructed so that The Travelers could use it with any other company with which it might wish to form an affinity.
“It has been set up so that it can make a smooth transition to fit another situation or agreement,” said Cy Tall, director of client services for Evergreen Advertising.