Hollard Insurance launched its direct marketing division in 1995 and in 1997, launched the first direct assurance division in South Africa.

Currently Hollard manages a number of successful direct marketing portfolios, one of them concentrating on offering insurance solutions to a variety of database and affinity groups under the brand of the affinity group. This increased response rates due to the affinity’s customer loyalty.

"We gain an enormous sense of satisfaction when we embark on a joint venture partnership that turns out to be successful. It proves the power of the brand," says Amakhosi brand manager Emy Casaletti-Page.

"All too often in the South African corporate world we are faced with skeptics that have this preconceived idea that soccer is not a good vehicle for achieving business objectives. Through this partnership with Hollard and through many more we have measurable proof that sponsorships/partnership with Kaizer Chiefs can be mutually beneficial if well orchestrated. Once again a feather in our cap. We love it when a plan comes together."

Kaizer Chiefs Financial Services (KCFS) was borne out of the above concept. Kaizer Chiefs (KC) is the biggest soccer club in South Africa and boasts 12 million supporters, who are passionate about the brand. KCFS extends the KC product offer, by offering supporters simple, value for money insurance products from the brand they support and trust.

In order to achieve this, KC and Hollard have entered into a joint venture agreement, whereby Hollard supplies the insurance expertise, direct marketing function, administration and claims system as well as the acquisition cost budget. KC provides the access to the strong brand, distribution channels and expertise in the marketing of a soccer club.

All marketing, policy fulfillment and interactions with prospects and clients are in the name of (KCFS), which is closely aligned with the overall KC brand image. A selection of products are offered, which are each endorsed by one of the club players.

KCFS was launched in November 2001 with the first 6 months being used for testing a variety of media including mass market daily newspapers, television infomercials as well as KC supporters magazines.

Within 6 months cost per response targets have been achieved on a monthly basis and response rates have exceeded expectations. As with all direct marketing initiatives, persistency is lower than through traditional channels, however retention strategies are implemented to address this. The business model has therefore proven to be viable.

Key success factors: