Success Stories

If: Optimization of Marketing Mix in the Nordic Countries

Business Issue
If is a leading player in the highly competitive Scandinavian insurance market, where significant shares of marketing budgets are spent on recruiting new customers through websites and customer service centers. The project objective was to give easy-to-execute and clear recommendations for If to manage its marketing resources more effectively and to increase If's total marketing efficiency.
If was seeking answers to the following:

• What are the most profitable marketing actions that drive traffic to the website and the customer service center?  Is TV advertising more cost-efficient in driving traffic than newspaper advertising?
• Are there ways to increase marketing efficiency? Are there measurable synergy effects to be gained in using different media vehicles simultaneously?
• What is the optimal budged allocation? Is it recommendable to increase investments in TV advertising at the expense of internet advertising?

Marketing Clinic Implementation
The most profitable marketing mix for If was identified through conducting a Marketing Mix Optimization process, which is one of Marketing Clinic's statistical modeling tools.  The recommendations for an optimal budget and marketing mix for each country were based on analysis and modeling of internal marketing activities as well as competitor actions and several other external factors over a long period of time. Through the analysis the isolated effect of different factors were identified and the ROI of the marketing mix could be determined.

Strategic Implications and Business Results
The analysis revealed an opportunity to increase incoming traffic simply through reallocating the marketing budget. With a reviewed and more cost-effective allocation of the marketing budget a potential to increase the incoming traffic in the different Nordic markets was demonstrated by 19% - 23%. In total, a new mix of the company's marketing activities contributed to more than 650 000 additional calls to the call centre and visits to the website. A follow up of the analysis on a Nordic level is planned on yearly basis to secure a continuously efficient ROMI.