Your SlideShare is downloading. ×
Customer retention… better than acquisition
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Customer retention… better than acquisition

1,680
views

Published on

Are you still competing on price? Given that the cost of acquiring a new customer can be as much as 5 times the cost of retaining an existing one; retention marketing has today become a core business …

Are you still competing on price? Given that the cost of acquiring a new customer can be as much as 5 times the cost of retaining an existing one; retention marketing has today become a core business requirement. This presentation reveals the measures organisations are taking to move from being transactional based to relationship based.

Published in: Technology

0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,680
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
36
Comments
0
Likes
5
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. AREYOUSTILL COMPETING ONPRICE? Customer retention… better than acquisition. Paul Lewis Customer Experience Specialist PitneyBowes
  • 2. The cost of acquiring a new customer over retaining an existing one. Retention marketing has today become a core business requirement.
  • 3. TheConsumer PerspectiveTreat eachcustomeras an individualand increasethe effectiveness ofyour customerexperienceprogram.
  • 4. IncreasingLevelsof Competition The act of acquiringnewcustomershas becomemore challengingthan everbefore. Competing onpriceisno longera sustainablebusinessmodel.
  • 5. AdoptingaCustomer CentricBusinessApproach Relationshipbasedmarketingand communicationsto drivecustomerengagement
  • 6. Today’sMulti-Channel Deliveringa consistent,joined-upexperience. WorldofInteraction
  • 7. MaximisetheValueof CustomerRelationships Customer Communications Maximise Relationships Data Management Customer Insight Achievingcustomercentricitythroughacquisition,and retentionstrategies
  • 8. WhatweEnable Tim receives email offer for Motor Insurance He follows web link to learn more but does not take up the offer yet Several days later Tim calls the contact centre with a question on the offer The call centre agent knows about Tim and the offer. Tim changes some details and requests a revised quote by email Tim receives his revised quote and visits the website to sign up to the policy Tim is welcomed as a new customer and is offered additional services Two weeks before the policy is due for renewal, Tim receives a new quote with a loyalty bonus Tim then receives a reminder of the offer stating the benefits and value he’s receiving which he redeems Time passes Time passes Motor Insurance Quote Name: Tim Wright License Holder: 17 years Car: BMW Lives: London Marital Status: Married Children: 2 Occupation: Accountant 1 2 3 4 5 6 7 8 9 10
  • 9. Tim receives email offer for Motor Insurance He follows web link to learn more but does not take up the offer yet Several days later Tim calls the contact centre with a question on the offer The call centre agent knows about Tim and the offer. Tim changes some details and requests a revised quote by email Tim receives his revised quote and visits the website to sign up to the policy Tim is welcomed as a new customer and is offered additional services Two weeks before the policy is due for renewal, Tim receives a new quote with a loyalty bonus Tim then receives a reminder of the offer stating the benefits and value he’s receiving which he redeems Time passes Time passes TheConsequences ofGettingitWrong!
  • 10. Tim receives email offer for Motor Insurance He follows web link to learn more but does not take up the offer yet Several days later Tim calls the contact centre with a question on the offer The call centre agent knows about Tim and the offer. Tim changes some details and requests a revised quote by email Tim receives his revised quote and visits the website to sign up to the policy Tim is welcomed as a new customer and is offered additional services Two weeks before the policy is due for renewal, Tim receives a new quote with a loyalty bonus Tim then receives a reminder of the offer stating the benefits and value he’s receiving which he redeems Time passes Time passes TheConsequences ofGettingitWrong! Wrong person, wrong channel Wrong offer Poor data, no SCV. No sharing of offers across channels Lack of personalisation Unrelated, irrelevant or repeated offers Not adhering to marketing preferences Untargeted offers, ad fatigue, risk of opt-out Spending unnecessarily Causing negative behaviour. Email bounces
  • 11. CustomerCentricityviaInteraction andCommunicationManagement Quote Policy Renewal Warm Up Anniversary Welcome Welcome MTA Quote Policy SCV shows high-value customer having 2 active policies and 1 pending quote. Customer directed to outbound call channel as opposed to print or email Mid-term period used to build deeper customer relationship and brand loyalty; data gathered through questionnaires SCV shows the customer bought add-on during previous welcome phase and model propensity score shows they are a good prospect for another up-sell offer Inbound call for mid-term adjustment gives opportunity for best next action offer based on real-time scoring of propensity and application of campaign prioritisation strategy M&A brings new customers. Data added to SCV shows previous lapsed policy. This initiates retention activity through inbound and outbound channels to protect existing policies Targeted trans-promo marketing messages incorporated in renewal warm-up communications. Uplift modelling determines the appropriate treatment for each customer during the renewal warm-up phase to maximise incremental revenue
  • 12. Transactionalor YouDecide! RelationshipBased…
  • 13. FindoutMore… Socialise with Pitney Bowes Learnhowleadinginsurance providerimproved renewal ratesby6%throughtheorchestration ofcustomerjourneysandcommunications. Tryg Insurance Video Case Study

×