The £6.2 billion merger between car breakdown and insurance group the AA and Saga, which provides holidays and financial services to the over-50s market, is expected to launch a massive integration project between the two companies’ data systems.
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Insiders said the merged group would be able to take advantage of Saga’s sophisticated IT systems to cross sell between the two groups’ members.
In 2003, Saga began using predictive marketing techniques on its direct marketing campaigns. This allowed Saga to increase its revenue by more than £1m and achieve cost savings. This was accomplished by enabling the company to conduct smaller, more targeted campaigns against its database of more than two million customers.
Saga said IT was part of the appeal of the merger. “We have taken a really close look and concluded that that there are significant advantages in combining Saga and the AA’s experience, expertise, systems and negotiating power, while maintaining their separate and very distinct brands and personalities,” said Saga CEO Andrew Goodsell.
In 2005, the AA successfully migrated its database of 24 million customers, representing several terabytes of data, onto an SAS 9 business intelligence platform in six months. The migration involved moving 18 IT systems, including an SAP enterprise resource planning system and fleet management and IT management systems. The AA demerged from utility firm Centrica in 2004.
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