Case Studies
Best of Practice
Background
It was apparent that the increase in lapse rates due to government tax changes called for urgent attention. A programme that provided immediate and cost-effective improvements in member retention was required while simultaneously building long-term bonds with the membership base.
Created as a dialogue driven communication programme, the Best of Health Programme made a significant contribution to the successful relationship the PMI brand enjoyed with its members.
The programme created a positive and relevant personal experience of the brand for the members which added value to the point of counteracting heavy price-based commoditisation, reducing customer lapse rates by 24% in the first year in the process.
This relationship was built on a thorough investigation and understanding of the relationship members seek with the brand and converting this into deliverables which reinforce this relationship.
The programme was delivered cost-effectively in the short-term in a way which positively reinforced and built brand values for the long-term.
Programme Objectives
Enhance the loyalty of personal members – specifically to increase retention levels by two percentage points over two years.
Increase the potential for both other PMI and general insurance products within the portfolio.
Add long-term value as the core deliverable to raise perceptions of PMI brand’s contribution to the members’ healthcare requirements.
Driven by an ongoing dialogue, the relationship proceeding at each member’s desired pace,
Reflect and reinforce the overall PMI brand proposition – “dedicated to supporting your health”.
Solution
A continuing programme delivering added value healthcare-related benefits which will become more and more relevant to each member, “Best of Health”.
Creating the Dialogue
The Best of Health was launched via a mailing of the Welcome Pack that also included a four-page, non-incentivised questionnaire, designed to explore members’ attitudes and requirements.
This opening established a programme that provided a sense of involvement, with members receiving personally relevant mailings and allowed the collection of valuable information about members’ primary motivations. It offered members catharsis – the opportunity to communicate how they feel about PMI brand.
The Machanics
It was essential to provide members with something that emphasised the importance and value of their membership.
‘The White Book’ was a high quality membership folder (highly likely to be in app form in today’s equivalent) which would be the focus for the on-going dialogue between PMI brand and its members.
Healthy Living Guides: Guides offering health information and offering advice, covering 60 topics, were produced.
Healthy Offers – A range of health-related money saving offers organised in conjunction with -respected third parties (St. John Ambulance, Lloyds Pharmacy, Dorling Kindersley etc.).
Health at Hand – This service provided medical and health guidance from a team of healthcare professionals, as an added value product in the Best of Health Programme.
The Ongoing Programme
B
Bes
Quarterly Mailing Programme
After the initial welcome mailing the ongoing programme consisted of four mailings a year. Each mailing was centred on a different broad-based healthcare focussed theme and included the opportunity to select more healthcare information relevant to the recipient’s lifestyle.
Each mailing followed a styling guide developed for the Best of Health Programme but designed to be executionally different to remain fresh to the member.
Dynamic Growing File of relevant information
All collateral delivered was designed to be stored in the “White Book”, allowing members to build a dynamic, growing file of self-selected healthcare support and information.
Demonstration of company positioning
Supportive brand values were further underlined through continued reinforcement of the benefits the company offers to the membership:
- new ways of contacting the company
- further explanation of the benefits of PMI
- general information on the increasing sophistication and knowledge available about general healthcare matters
Dialogue was encouraged at every point of contact. The resulting information was used to continuously update member profiles, refine targeting and improve the programme’s value to individual members.
The Results
Lapse Prevention
The short-term objective was to cut lapse rates by 2 percentage points over two years. In fact, lapse rates improved by 24% in the first year and in the control group they deteriorated by 7% over the same period.
Cross Selling Opportunities
26,000 leads positively requested by members for other group company products.