YouGov’s chief executive Steve Hatch takes a closer look at the data behind the biggest stories in business.
Direct Line recently announced a cost saving plan that is expected to lead to 550 job losses. The measures, revealed in a trading update issued on Monday, will include a “series of initiatives” designed to deliver around £50m in cost reductions next year.
Direct Line has said that motor insurance trading conditions have been challenging, and that CEO Michael Winslow will focus on “refreshing the strategy and operational focus of the group”. One area of consolation while it’s struggling: according to consumers, its brand remains relatively strong.
YouGov BrandIndex data, based on the views of the public and collected every day, shows that at 9.2, Direct Line’s Index scores – a measure of overall brand health – were more than twice those of the average insurance brand (4.3). Digging into other measures tells a similar story.
Impression scores for the brand, which track general positive and negative sentiment, were at 13.4 for Direct Line; again, more than double the industry average of 5.9. The same goes for Satisfaction scores, which are at 10.2 for Direct Line and 3.9 for the average insurer. Customers like the brand, and it makes them broadly happy.
Challenging trading conditions have been cited as a reason for Direct Line’s recent performance but at least it is faring well in the eyes of consumers when it comes to providing Value for Money. Scores for this metric are at 2.1 compared to 0.7 for the wider industry.
Job losses are always a bitter pill to swallow – and among those being cut are vacancies yet to be filled – but while the company may be in a tough spot, Direct Line remains a strong and well-liked brand among the UK public. The question now is whether the strategic overhaul promised by its leadership ultimately succeeds.