Legal & General: Propensity optimisation to grow direct mail performance

25 January 2022

Challenge:​

L&G operate in the highly competitive over-50s market. Direct mail had become one of their least cost-efficient media channels over time and they were looking to make cost savings to improve ROI. To meet the challenge, we needed to reach those people most likely to respond positively, optimising their campaigns rather than cutting back.

Impact:​

We created a propensity model using response history & geo-demographic data to identify the most valuable response profiles and those likely to convert. This was then used to optimise L&G’s ongoing targeting criteria. ​ We also conducted a data cleansing process to reduce costs and to access postal discounts to further boost L&G’s ROI. ​

Results:​

L&G’s response rate increased by 56% for the subsequent campaign, saving an £800,000 on direct mail campaigns over the course of the first year.​ By removing 3,000 supressed records and improving our data buying strategy, a further £760,000 was saved raising the total to over £1.5m.​

Outcome:​

The strategy and result won us an award from the Chartered Institute of Marketing for “Best Use of Insight and Analytics”, and L&G continued with efficient monthly DM campaigns. Monthly campaigns were run from here on with increased volumes.

Share on social

Related articles

Is paper powering the phygital revolution? 

Is paper powering the phygital revolution? 

Welcome to the era of phygital marketing, where print and digital don’t compete – they  collaborate!  Canon and The Drum put this theory to the test with a bold marketing experiment called Creative Futures, teaming up with a powerhouse lineup of creative,...

Independent… but part of a group. How does that work?

Independent… but part of a group. How does that work?

Although we're part of Salocin Group, we operate as an independent buyer. This is what we mean when we say we’re an independent agency. And it’s one of our key strengths.   It means we’re not tied to any predetermined deals and remain media neutral. All our planning...

Do you know what a super touch point is? 

Do you know what a super touch point is? 

As JICMAIL Platinum Partners, we’re always keen to get our hands on their new reports. And their latest one, Mail: The Super Touchpoint, is out now. It reveals fresh insights into how mail (including direct, door drops, partially addressed mail, and business mail)...

We’re joining bigger and better dots in 2025 

We’re joining bigger and better dots in 2025 

We’ve signed our first new client of the year, and they’re a biggie – it’s none other than Comic Relief!   Back in 1985, a pair of comedians came up with the funny idea of using the power of laughter to change lives – and Comic Relief was born.  ...