1. Giving customers A warm welcome
Profitable relationships start with A welcome
[date]

2. 1/3 63% 3 of 4 The insurance market Key headlines
Customers say s don’t contain information that’s relevant to them2
Customers switch within less than 12 months1
3 out of 4 don’t trust their insurer3
The UK is the 3rd largest insurance and long term savings industry in the world and the largest in the EU. 84% of consumers own at least one insurance product.
Switching is rife and more prevalent than ever before.
isn’t hitting the mark, with 63% of customers saying s don’t contain relevant information.
And insurance has really poor levels of trust amongst consumers. With many saying they wouldn’t trust their insurer to pay out if they needed to claim.
Against all this mail has been declining.
Source: 1 Mintel, December, 2015 (average across commoditised Insurance products.). 2 DMA, Accenture.

3. 32% £13m 37% Using mail in insurance
Mail usage in insurance is second only to TV
32%
The top 20 average spend on mail
£13m
75 out of 201 advertisers in General Insurance use mail
37%
There are currently 201 listed advertisers in the GI sector. Over the last 5 years 191 used mail but only 75 used mail in 2015, 37% of the sector.
Interesting then that mail volumes over this period have been falling.
Source: Royal Mail MarketReach, Print Catalogues in a Digital Age, Illuminas, 2013.

4. 3 out of 4 consumers say they don’t trust their insurer
Switching is high
Across all INSURANCE TYPES
34%
All Insurance
43%
Motor
29%
Home Insurance1
3 out of 4 consumers say they don’t trust their insurer
Retention rates aren’t great are they?
Switching obviously increased with the aggregator presence.
And insurance price hikes haven’t helped, especially in the motor insurance segment – where prices have been rising by as much as 13.5% ahead of tax increases.
Even in home insurance where 86% of consumers hold a joint home and contents policy 35% looked around for a better deal but decided to stay. 29% still switched and this in an area where the prices are a lot more predicatable!
Therefore the trust element seems really key. Surely if you trust your insurer you’re more likely to stay with them?
How might a welcome communication help to build that trust?
Source: Lightespeed GMI/ Mintel, 2015.

5. A good welcome Serves many goals Starts to build loyalty
Provides reassurance
Something tangible to keep
EMOTIONAL
Reminder who to renew with
File it in a safe place
PRACTICAL
Mail has the unique ability to address a host of consumer needs in one simple communicaiton.
From a practical level people have a routine, they’ll often file important household information in the same place. With car insurance many of us keep it in the glove compartment, should we need to call on it.
Mail, particularly business mail like this, stays in the home for up to 45 days. It won’t just be looked at once but probably visited again and again.
And mail is uniquely tangible, you can hold it, renew it and check that your policy details are all right.
Whicch all means it helps to build trust, provide reassurance, builds loyalty and helps to keep your brand front of mind. All emotional benefits which link directly to coimmercial benefits in the longer term.
Keep it in a habitual place
Keeps it front of mind
Helps to build trust

6. 57% 58% Mail creates a lasting Impression from the start
Valued mail makes people feel more valued
Prefer a welcome pack by post rather than
When people receive mail they feel more valued.
Consumers tell us that s are easy to ignore. If 52% of s are deleted in 2 seconds it’s easy to see how a welcome could be overlooked and it almost certainly won’t have the same impact as mail.
And finally customers who receive mail and more likely to buy from a company after receiving mail. Mail drives all sorts of commercial actions in a way other channels don’t.
58%
More people would consider buying after receiving mail
Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014.

7. MAIL THAT MAKES PEOPLE FEEL MAKES THEM DO SOMETHING
of respondents said their valued mail made them feel something
of those who felt something, did something of commercial value
In our study of valued mail In we explored the relationship between what recipients said valued mail told them, what it made them think and feel and ultimately what they did. What became clear is that people who recorded feeling something were more likely to act than those who did not.
This correlation is quite clear: mail that makes you feel something makes you do something. And conversely, those who felt nothing – a total of 8% of our sample – were much less likely to do anything.
Note to media specialists: Unusually 2 of our key statistics were 92%:
- 92% of people said their valued mail made them feel something
- 92% of those who felt something did something
Source: Royal Mail MarketReach, Valued Mail, Quadrangle, 2014.

8. The fact that mail touches people with such a high emotional intensity is important when you want to build trust. Mail is a really vital way of building long term trust with consumers. And the brands they trust they’ll come back to again and again.
Source: Royal Mail MarketReach, Neuro-Insight, 2013.

9. TOUCH CREATES A POWERFUL EMOTIONAL RESPONSE
When people can both see and touch something, they value it 24% more highly than if they can only see it.
Over a third of people say that the physical properties of mail influence how they feel about the sender.   
+22%
+24%
Touch is an important part of that emotional response.
Behavioural marketing experts have investigated the importance of touch in human psychology.
Multisensory stimulation seems to alter the way the brain processes messages – often making processing quicker.
Physical contact results in what psychologists call the ‘endowment effect’ – a sense of ownership over an item which makes people value it more highly.
Scientific experiments have shown that people value something they can see and touch 24% more highly than something they can only see.
Meaning that the physical nature of mail gives it a sense of importance as well as influencing how they feel about the sender. How important is that in a market typified by switching…
Source: Peck, Joann, and Suzanne B. Shu. The Effect of Mere Touch on Perceived Ownership. Journal of Consumer Research, 2009

10. Ultimately you should add mail Because it makes you money
Campaigns that included mail were:
27% more likely to deliver top-ranking sales performance
40% more likely to deliver top-ranking acquisition levels
And from an extensive study by Media expert Peter Field when he studied all the campaigns that were submitted to the IPA Marketing Effectiveness awards was that campaign which included mail performed btter in terms of return on investment.
Again all important factors in a business where of course all of your marketing spend is crucial and any wastage would be scrutinised.
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

11. 2.9x 3.4x WITH MAIL IN THE MIX, MARKET SHARE
GREW 3 TIMES MORE EFFICIENTLY
Mail included in multi-channel campaigns drove market share growth with 3x efficiency versus non-mail advertisers
2.9x
Market share growth for all clients using mail
3.4x
Market share growth for service sector using mail
Furthermore the results of this analysis showed that where mail was included it drove market share growth with 3 x the efficiency of those that did not include mail.
A brand spending the same amount of money on two campaigns, would therefore experience three times the amount of market share growth from one that included mail than one that did not.
Source: Royal Mail MarketReach, IPA Databank Meta-Analysis, Peter Field, 2013

12. CLOSE BROTHERS
WELCOME REDUCES THE COST TO SERVE

13. THE RIGHT SOLUTION FOR CUSTOMERS
THE RIGHT WELCOME
THE RIGHT SOLUTION FOR CUSTOMERS
Backgound:
Close Brothers underwrite products for many leading brokers, they have a direct relationship with over 2m consumers. To ensure customers are covered Close Brothers sends a welcome pack and they require the customer to sign and date the agreement and return it to them. Their welcome pack however wasn’t clear and they were receiving over 1m calls to their call centre every year as customers did not fully understand their policy details.
Solution:
Close Brothers changed their welcome pack to ensure that it included the name of the broker the product was purchased through. Simple step by step instructions were set out, guiding the customer on what they needed to do next.
Results:
With a small investment in artwork and copy of just £10k the savings so far (a month into the campaign) are running at £425k from an 8% reduction in calls to the call centre. There has been a four-fold reduction in the levels of administration Close Brothers are doing due to the higher consumer compliance to sign their agreements and understand their policy details.

14. Welcome customers with helpful Tools to get through winter
Background:
Rarely are customers rewarded for their loyalty so the relationship between customer and insurer can be fickle. So MORE TH>N wanted to do more and strengthen the relationship with their renewing customers.
Solution:
MORE TH>N proved it understood its customers’ needs by mailing a welcome and subsequent collection of motoring related gifts, relevantly timed, to get them through winder.. A branded ice-scraper, demister cloth and a credit card sized torch, with the message: ‘The British winter – we’ve got it covered.’
Results:
The campaign’s effectiveness was measured through retention levels at renewal.
Source: Royal Mail MarketReach, More Th>n, Winter 2009/2010

15. MAIL INNOVATION: NRMA SENT A TRACKING DEVICE TO
MAKE SURE THEY DIDN’T LOSE CUSTOMERS
Background:
NRMA Insurance Australia wanted to welcome new customers and reassure them that they’d made the right decision in taking out an NRMA policy.
Solution:
Insurance companies help people protect the big things in life: cars, houses, boats etc. But more often than not, it's the little things that go missing. And they can be extremely difficult to track down. So, NRMA Insurance mailed new customers a TrackR – once it was attached to a wallet, keys or even a pet the owner could log on to an app to locate it should it go missing.
Sent in a cheerful blue envelope with a personal and welcoming message, this unexpected gift was certain to leave a warm glow.
Results:
The TrackR received an overwhelmingly positive response from customers – helping them track down things like purses, remote controls, even pet guinea pigs. And during the process, customers provided additional data that would enable more relevant and engaging future communications and so reasons to stay with NRMA.
All headlines appear in uppercase and are always out of the blue text boxes, up to a maximum of 2 lines. Single headline master is available in the theme.
Source: Direct New Ideas

16. ROYAL MAIL TESTING & INNOVATION SCHEME (TIS)
TEST A NEW USE OF MAIL AND
EARN 30% DISCOUNT
Test and learn activity has reduced in recent years as budgets and time are tight
ROYAL MAIL TESTING & INNOVATION SCHEME (TIS)
This Testing incentive is designed to help you overcome the barriers to testing

17. HOW THE TIS WORKS THE DEAL WHO’S ELIGIBLE TEST IDEAS
Discount from the Royal Mail price for customers testing new business mail or advertising mail applications
THE DEAL
30% discount on business mail tests and 15% discount on advertising mail tests carried out over a period of 1 – 6 months
10% discount in months 6 – 12 for business mail tests that roll out
Discounts paid in the form of postage credits
WHO’S ELIGIBLE
Anyone testing a new mail activity, and sending a minimum of 10,000 items in a test (limited to 10m items for business mail and 1m items for advertising mail tests)
For postings sent directly with Royal Mail or an Access Operator
TEST
IDEAS
New mail application e.g. welcome pack
Re-design of letter layout
Envelope changes e.g. Digital Stamp

18. THANK YOU
YOUR NAME
YOUR TELEPHONE NUMBER
YOUR