Case in Brief: ING Direct Australia

By | April 21, 2010

Changes in 2007 to the Australian Superannuation regulation required an update of tax file numbers. Superannuations or Supers are like US IRAs (Individual Retirement Accounts)

Up to 31 July 2007, contributions to retirement funds were taxed at the lowest rate. After this date, if a Tax File Number (TFN) was not recorded on the account, contributions would be taxed at the marginal rate of 45% meaning less of each contribution would make it to the customers account : – bad for customer, very bad for ING since they make their money based on funds under management.

ING’s agency convinced them to use the changes that they were going to have to make in response to this legislation to test the impact of color and personalization.

So they redesigned the statement and created a black and white version and a full color version which were similar in layout.

They created a test group and a control group.

The control group was black and white and generic

The test group was both color and included relevant messaging and personalized imagery so you have to look at the results as a combined effect.

The bottom line is that they drove results directly attributable to the test:

An increase in funds under management of 22.5 million included funds rolled over from corporate plans into their super and new contributions to existing supers

They didn’t have staggering results for collecting Tax file numbers: they got about a 1.16 % response with the control group and a 1.79% response with the test group (but that’s still a 54% better response than the control.)

But the numbers your CFO will really care about are the return on each dollar invested: $111 for the test group versus only $58 for the control group.

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