Legal & General: Propensity optimisation to grow direct mail performance

25 January 2022


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.


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. ​


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.​


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.

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