AA hails CRM strategy for halting membership crash

AAThe Automobile Association has hailed the implementation of a new CRM strategy for reversing a disastrous decline in breakdown membership, after the motoring organisation reported attracting thousands of new members.
The AA has about 8 million customers in total, although the majority belong to its financial services division, which sells car insurance and loans. The organisation also offers driving lessons, motoring advice, road maps and other services.
And although the increase in breakdown membership is hardly off the scale – up 13,340 to 3,335,00 paying members – it is the first time the AA has seen numbers rise in years; a move it described as “an important milestone”.
The group, which dates back to 1905, said the increase in membership was driven by a 19% growth in new business volumes in the second half, compared with the corresponding period in the previous year and an improved annual retention rate of 82%.
An update to the City said: “The IT transformation programme continues to make good progress. We are especially pleased that sales through our digital channel have grown significantly and that our new CRM system allows us to undertake better targeted marketing campaigns.”
Marketing activity is handled by Oliver Group and Adam & Eve DDB, with media run through Carat.
The City briefing added: “Our AA breakdown app has now been downloaded by more than one million personal Members and is being actively used in 22% of breakdowns.
“In the year ahead we expect to begin processing both new business and membership renewals through our new IT systems which will improve the membership experience and deliver further cost benefits.”
Last February, the organisation hired software provider Informatica and Pegasystems to deliver the new strategy as part of a major business and technology transformation programme.
To turn large volumes of raw data into insight, the AA deployed a new suite of solutions to deliver customer services and experience across all its channels, to gain a 360-degree view of its customer base.
Existing customer data has been cleansed and integrated into the Informatica MDM hub, delivering a consistent view of the data that is immediately available to all the AA’s business units.
The transformation had an immediate effect. By September 2016, the group reported pre-tax profits had come in at £48m for the first half of the year, compared with a £69m loss in the same period in 2015.

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