1September 15, 2008

                                

Creative Testing Case Study: Amica Insurance

2

Agenda

• Amica Overview

• RPM Direct Overview

• Creative Testing Approach

• J.D. Power Award

• Results-You Vote

3

Amica Overview

• 1907 – Focus on service

• Direct Writer – Personal Lines Insurance

• 38 Branch Offices & Call Centers

• Auto, Home, Condo, Renters, Marine, Umbrella, Life and Annuities

4

Amica Overview

• Referrals – Primary source of growth

• Marketing – A relatively new activity

• Customer profile/target

5

R4 P M

Response Profitability Marketing

Revenue

Risk

Retention

RPM Direct — your key to direct success…

6

The Turnkey, Outsourced Solution for Highly Targeted, Profitable, Direct Market Auto Insurance Customer Acquisition.

RPM targeting techniques have driven in over $1.5 billion of profitable direct auto insurance premium.

RPM Direct

7

• Methodology developed over the past 12 years.

• Employs a measure of Lifetime Customer Value to target each marketing prospect.

• RPM builds discrete multivariate scoring models on the key drivers of profitability: Response, Conversion, Revenue, Risk, and Retention.

• Proprietary methodology integrates multi-dimensional scoring models into a measure of Lifetime Value for each prospect.

• Customized for each client.

RPM Proprietary MethodologyA. Overview

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Names

Credit

X Date

Demos

Events

ProspectDatabase

RegressionModels:•Response/ Conversion •Revenue•Risk•Retention

PLVTargeting

Solicit:•Mail•Phone•E-Mail

Phone Center/Website•Underwrite•Sell Product

ProductDelivery

CaptureResponderData

ResponderDatabase

RPM Direct — Database Marketing Model

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Creative Testing Approach

Champion vs Challenger: Test new approach against existing control position.

• Select adequate sample size to produce meaningful results.

• Construct sample to ensure similar characteristics of test and control samples.

• Adjust tests for cost differences.

• Experience and judgment still play a key role.

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Amica’s Creative Philosophy

• Consistent with company image and culture.

• Consistent with current customer profile.

• “Savings” not primary focus of advertising.

• Do not try to appeal to all prospects.

• Concepts successful in direct mail may be useful in mass media and in sales material.

• Amica aggressively tests new creatives each year.

11

J.D. Power Award

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J.D. Power Award

• How does emphasis on the J.D. Power award in the creative affect direct mail performance?

• What would happen if we did not mention the award?

• What would happen if we increased emphasis on the award?

• What happens when you make the award the main copy point and USP of a direct mail kit?

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Testing Objectives – New Creatives 1 & 2

Objectives:

• Design new creative without plastic card.

• Design new challenger package to beat control kit.

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Important Rate Information Kit Control

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New Creative Test 1: Eligibility Certificate

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Results

Control kit beat Eligibility Certificate kit

100

83

80

90

100

110

IRI Eligibility Certificate

Re

spo

nse

Ind

ex

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New Creative Test 2: Rate Notice Kit

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Results

Rate Notice kit beat the control

100

110

80

90

100

110

120

IRI Rate Notice

Re

spo

nse

Ind

ex

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Objectives:

• Test for value of the J.D. Power award insert.

• Test a J.D. Power card in place of the control card, increasing emphasis on award.

Testing Objectives – Control variations 1&2

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Important Rate Information Kit Control

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Test: Remove J.D. Power Insert

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Results

J.D. Power Insert improves performance.

100

94

80

90

100

110

IRI IRI without J.D.Power Insert

Re

spo

nse

Ind

ex

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Test: Control Card vs JD Power Card

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Results

Replacing the control card with the J.D. Power card does not improve performance.

100

80

70

80

90

100

110

IRI IRI with J.D. PowerCard

Re

spo

nse

Ind

ex

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Objectives:

• Design new creatives that emphasize the J.D. Power award.

• Test using J.D. Power award as a unique selling proposition and main copy platform.

Testing Objectives – New Creatives 3 - 6

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Before You Pay Kit Control

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New Creative Test 3: 8 Year Kit

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Results

Control kit beat 8 year kit

100

84

80

90

100

110

BYP 8 Year

Re

spo

nse

Ind

ex

29

New Creative Test 4: Invitation Kit

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Results

Control kit beat Invitation kit

100

81

70

80

90

100

110

Before You Pay Invitation

Re

spo

nse

Ind

ex

31

New Creative Test 5: 8 Year Kit

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Results

Control kit beat 8 year kit (version 2)

100

55

50

60

70

80

90

100

110

BYP 8 Year (version 2)

Re

spo

nse

Ind

ex

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New Creative Test 6: Hot Buttons

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Results

Control kit beat Hot Buttons kit

100

90

80

90

100

110

BYP Hot Buttons

Re

spo

nse

Ind

ex

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Summary

• Higher quality kits are worth the price.

• More of a good thing is not always better.

• Keep the offer simple

• Direct mail effective at targeting Amica’s prospects.

36September 15, 2008

                                

Presented By:

RPM Direct, LLC24 Arnett Avenue

Suite 100Lambertville, NJ 08530

609-566-7150 x 101Fax: 609-566-7155