Auditel brings HAG’s spiralling direct mail costs under control

HAG has discovered that prospective clients are wary of faceless web portals and prefer to make arrangements with a real, live person.

For this reason customer interactions are conducted by telephone, with subsequent documentation (reminders, renewals etc) in the form of a personalised printed letter. As HAG’s client base continued to grow this imposed a logistical burden on their in-house facilities.

Home Appliance Guard provides comprehensive insurance cover for domestic electrical goods. The ever-increasing complexity of modern equipment makes it prudent to protect major items against breakdown or accidental damage. Operating from their base in Bournemouth, HAG offers policies on a range of items from white goods to televisions.

Growing pains

HAG solved this by outsourcing direct mail to an external supplier, but managing a rapidly growing business left no time to review mailing costs and determine if their current supplier still offered good value.

Auditel came to HAG’s attention through a timely telemarketing campaign.

Mailing costs review

Following subsequent meetings, Auditel was asked to conduct a cost review of this sector. Current workflows were defined and costed, and from this a ‘Request to Tender’ was sent to a small group of trusted suppliers. The results were collated, analysed and presented to HAG for consideration, noting that service items such as paper quality, delivery schedules and print clarity were deemed equally important to cost.

Positive outcomes

The results were impressive – a projected 34.7% saving on an annual spend of £143,500 (£49,795 annually).

Having received authority to press ahead, Auditel managed project milestones during the transition to a new supplier – issues such as due diligence (references, DR provisions, contractual terms etc) through to technical considerations (data downloads, page layouts etc). Now the project is fully operational HAG is very happy with their new supplier and actual savings (36.2%) have exceeded expectations. Auditel continues to manage the supply, working in the background to monitor invoices and remedy any small operational issues.

Home Appliance Guard has since asked Auditel to review a number of other costs areas: Electricity, Merchant Cards, Telecoms, IT Infrastructure.