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DMA: Data and Marketing Association
Consumer Help
insurance

State Click. Pop. Win.

Agency: Chemistry Interaction    •    Client: IAG New Zealand    •    Category: Insurance    •    Award: Bronze Award

State (state.co.nz) is one of New Zealand's largest general insurers and a founding partner in Fly Buys, a national loyalty programme (flybuys.co.nz). But to remain sustainable, State needed to reduce its Fly Buys points issuance ratio and they knew this would impact 89,275 moderately to highly engaged Fly Buys members - State's most valuable customers. Our objective was twofold: retain 'at-risk' Fly Buys members and increase engagement of moderate Fly Buys customers.

Campaign Objective

State is the only general insurer to offer Fly Buys; it’s their differentiator and a strong strategic advantage. For customers who are engaged Fly Buys members it’s a major factor in their choice of insurer. Any perceived loss of value had the potential to incite significant churn amongst the target group. However, a change was essential to keep premiums affordable, so a bold decision was taken to reduce the points issued on premium payments from 1 point for $20 to 1 point for $25. How could we frame a potentially negative change in a way that would engage those loyal to the Fly Buys programme, and still involve those who would be less concerned? Our strategy was to present customers with something they couldn’t refuse – instant Fly Buys points that had been pre-allocated based on their engagement with Fly Buys.

Target Audience:

Using State’s ‘Click. Done’ strapline as a starting point, we created a fun online game called Click. Pop. Win, which reflected the strong ‘blue world’ visual identity and quirky tone of the State brand. Customers were invited to pop a balloon to reveal their bonus points reward, using their choice of pointy implement: a chainsaw, a pineapple, a stiletto, a rocket or a swordfish.

The Execution

State knew that 70% of their customer base are active Fly Buys customers. But they had to stay competitive. So a bold decision was taken to reduce points issuance from 1 point for $20 of premium to 1 point for $25. Because we knew this could raise the flag for customers, causing them to leave, we decided to turn this into a positive, allocating free Fly Buys points based on customers’ engagement with Fly Buys. First, we identified that points are collected in multiple ways: o Annual payment o Instalment payments (fortnightly, monthly, etc) o New Business, Renewal o Policy amendment – debit and credit (including cancellation) o Cancel and rekey – sometimes a business process will cancel a policy loaded in error and reload it as a different policy number, transferring/re-receipting funds paid. We needed a single customer view to target correctly. State doesn’t have this across business, life and personal insurance products. So we used the Fly Buys account structure instead. All State policies are linked via their Fly Buys card number to their Fly Buys account. The analysis threw up a staggeringly high percentage of customers that would be dramatically impacted, which formed the basis of the Click. Pop. Win. campaign. We decided to mitigate points lost for Moderate/Medium to High to Very High/Large impacted customers only (52% of the base). These are our most valued customers (multi policy holders with long tenure) and most likely to respond negatively to the change. The best way to engage our at-risk Fly Buys collectors? Meet them head on with a compelling bonus points earning opportunity to offset the impact of the points they stood to lose as a result of the change. To ensure success we needed a genuine surprise and delight mechanic that would provide customers with an engaging way of earning bonus points with State – and so Click. Pop. Win. was born. Click. Pop. Win. was an online-only lucky dip mechanic, rewarding customers with a pre-determined number of bonus points. The bonus points amount awarded per customer corresponded directly with their risk level and the amount of points they stood to lose. By driving customers online via eDM or DM, we could ensure active participation, effectively filtering and rewarding only those customers motivated by Fly Buys thereby avoiding a mass issuance of points to customers who may not have cared one way or the other.

The Stats

State’s brand promise ‘Brilliantly Simple’ is about making insurance easier and faster for everyone. As part of this, we have created a simple ‘blue world’ in which the brand lives. It’s designed to stand out from the clutter, creating a calm space in which we can communicate our message. The core creative challenge behind the Click. Pop. Win. campaign was to put a positive spin on a negative event. We had to communicate to customers that the number of Fly Buys points they earned with State was going down, without losing their business. Strong Art Direction, copy, imagery and typography were key to this. We needed to create a distinctive experience both offline and online which felt simple to engage with and made customers feel instantly rewarded for being with us. The game play needed to be easy and fun, reflecting the visual identity and quirky tone of the State brand. We used State’s blue cyc as the background for the campaign, then we created five distinct images as sharp implements for ‘popping’ the balloon. Customers could choose between the chainsaw, the pineapple, the stiletto, the rocket or the swordfish, each of which came with the appropriately amusing sound effect and approached the balloon in a different way. Finally, we chose 3D type to communicate the ‘POP’, which burst onto the screen once the balloon had burst, dramatizing the number of bonus points customers had won and creating a feeling of celebration.

The Results

We needed to mitigate the impact of the Fly Buys change, retain ‘at-risk’ Fly Buys members and increase engagement of moderate Fly Buys customers. In doing so, we needed to ensure we: o Didn’t accelerate customer churn o Captured missing email addresses from our DM base – the target was a 5% increase o Reminded customers of the benefits of being with State, including multi-policy discounts, online discounts and the State mobile app. State Click. Pop. Win. was a runaway success, mitigating any potential reduction in policy renewal rates, despite the less than positive news we needed to deliver. Not only did we avoid customer churn as a result of this campaign, we saw a 3% lift in our policy renewal rate. Of the 89,279 State customers contacted, 29% visited the campaign microsite to claim their instant prize. When it came to email capture, our target of an additional 5% was blown out of the water with 56% of responders (13% of our target audience) giving us a new email address. Plus 94% of all responders (22% of our target audience) validated, updated or gave us a new email address. The higher the customer’s engagement with the Fly Buys programme, the higher the corresponding response and email rate. What’s more, policy renewal rates among targeted customers were significantly higher than among non-targeted customers. The eDM was the most successful, with a response rate of 36% and an email validation rate of 28%, 16% of these being new emails.

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