Optimizing Program Performance and Profitability
Leading US-based Appliance Manufacturer
Solutions:FXInsightsMarketing StrategyData ManagementMultichannel Marketing
The client had an existing aftermarket program for Extended Service Plan marketing but didn’t have the platform for scaling the program and implementing innovation and testing strategies to grow the program revenue or profitability.
Optimizing an existing program requires an end-to-end assessment of the program across available data, campaigns, marketing strategy, creative, marketing and response channels, and all program-related costs. Defining weekly/monthly goals and adopting a continual focus program performance improvement across all stakeholders – client, marketing, administration, and underwriting, requires strong partners, full transparency, and aligned objectives.
Accentf(x) Marketing implemented a disciplined testing approach (creative, messaging and price-sensitivity) combined with advanced modeling approaches (response, claims and lifetime value) and aligned performance incentives across stakeholders to drive continual year-over-year performance improvements.
Over a five-year period, through a combination of operational, marketing and analytical enhancements, we generated a 56% improvement in Program Revenue, a 43% increase in Revenue per Lead Marketed, and a 27% increase in Average Sales Price -while decreasing claims frequency by 34% for Expiring Factory Warranty, 12% for Renewal, and 24% for Out-of-Warranty campaigns.
56% Increase in Program Revenue, 43% Increase in Revenue per Lead
27% Increase in Average Sales Price
Double digit decreases in Claims Frequency through Claims Modeling