A CUSTOMER INSIGHT-LED LOYALTY STRATEGY
Helping Aviva to recognise and reward customers at key times throughout their motor and home insurance lifecycle.
Chilli Pepper developed a customer insight-led Loyalty Strategy that was unique to Aviva, and recognised and rewarded their customers with the right reward, at the right time, AND always gave them an EXTRA Surprise and Delight to let them know that Aviva were thinking of them.
Aviva is Ireland’s largest composite insurer with over 300 years of heritage and help customers manage their motor and home insurance needs.
Ahead of approaching Chilli Pepper, Aviva General Insurance were facing some very tough market conditions:
- New entrants into the insurance market were committing huge budgets to new customer promotions, supported by large scale campaigns which set off a price war in the Motor & Home Insurance market.
- As a result, customer retention rates in the market were declining fast and the cost of acquisition was increasing.
- Aviva’s more established competitors were now investing hugely in Customer Loyalty initiatives to combat the decline, but all of their Loyalty Strategies were exactly the same, using the exact same white label Loyalty Mechanic, with no stand-out difference in the market or for their customers.
As a result of these challenging market conditions, Aviva wanted to get more strategic about their approach to recognising and rewarding their customers for their loyalty.
Aviva’s strategic ambition was to create a customer insight-led Loyalty Strategy that would recognise and reward customers at key times throughout their motor and home insurance lifecycle, one that was both measurable and manageable for their marketing team and most importantly, one that was financially viable for them to sustain!
The challenge was that the insurance loyalty and rewards landscape in Ireland had become extremely cluttered and customers were being bombarded with generic rewards from lots of different insurance brands, and quite often the same rewards from multiple insurance brands.
This meant that if Aviva was to gain any traction, they had to create a Loyalty Strategy that showed real customer understanding, was unique in the market, authentic to who Aviva were as a brand, and delivered on their Customer Promise of ‘Good Thinking’ being at the heart of everything that they did for customers.
Aviva needed a strategic Loyalty Solution that would help them to get closer to their existing customers by recognising and rewarding them for the years that they had been with Aviva and the number of policies that they held. They also needed to use it as a way to engage with customers in a more meaningful way – giving them more reasons to stay with Aviva, and increasing their rate of renewals on motor and home policies.
At this stage, Chilli Pepper had been working with Aviva for more than 8 years, helping them to solve complex customer challenges that they often considered insuperable. So when Aviva asked Chilli Pepper to help them solve their customer retention issue by developing their Customer Loyalty Strategy – we jumped at the chance to assist them in their quest to become a truly customer centric organisation!
Our approach to the Aviva Loyalty Strategy Project was based on the process that we apply to all B2C and B2B Customer Loyalty Strategy Development Projects – our proven 4 Stage Proprietary Strategic Loyalty Process.
This unique and comprehensive process involved an intensive Business Deep Dive, a Loyalty & Familiarisation Workshop, Customer Research, and the development of the optimum Loyalty Strategy and Business Case.
The optimum Loyalty Strategy delivered several rewards at key moments of the customers motor or home insurance lifecycle, offered them relevant, high perceived value rewards, and ALWAYS offered customers an extra Surprise and Delight – which made them seem richer and more meaningful by virtue of the thoughtfulness behind them.
The strategic approach was to deliver unexpected moments of magic that say something important about how Aviva are always thinking of their customers.
With Chilli Pepper’s knowledge and expertise at turning Strategies into action, and helping Loyalty Strategies soar, Aviva also asked Chilli Pepper to assist them with the Implementation and Programme Management of their Loyalty Strategy for the first two years of the Programme.
From the moment Aviva received sign-off of their Loyalty Strategy and Business Case, we assigned Aviva a Loyalty & Reward Programme Manager, who provided hands-on day-to-day support to take their Loyalty Strategy to market.
The results were incredible and Aviva received unsolicited direct communication from customers thanking them for the timeliness and relevance of their reward. The implemented Loyalty Strategy saw the highest redemption rate ever achieved for Aviva, and vitally the customers who redeemed this reward had a higher propensity to renew their insurance policy with Aviva.
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