Achieving loyalty of customers, a tried & tested framework

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BNP Paribas Cardif Turkey, a case study of Loyalty & Anti-Attrition program targeting life & pension customers with spesific results...

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Achieving loyalty of customers, a tried & tested framework

  1. 1. Achieving Customer Loyalty in Savings a case study from Turkey Uğur Çağlar BNP Paribas Cardif, Turkey CMO & Head of Agents April, 2013 Barcelona
  2. 2. Agenda • brief introduction • achieving customer loyalty 2
  3. 3. BNP Paribas Cardif Turkey  100% subsidiary of BNP Paribas Cardif, part of BNP Paribas Group  Operating in TR since 2007, acquired Fortis Pension & Life in 2010  Providing pension, life protection, life saving, personal protection insurance BNP Paribas Cardif Turkey - Channel Based Structure BNP Paribas Cardif Hayat Partners BNP Paribas Cardif Sigorta Partners TEB [Retail Bank] BNP Paribas Cardif Emeklilik Tied Agents 3
  4. 4. Agenda • brief introduction • achieving customer loyalty 4
  5. 5. Introduction Experience mainly based on retirement products (pensions) All of them tried & tested... interaction, welcome... 5
  6. 6. Achieving Customer Loyalty in Savings Understanding “why” customers leave & 1 what makes them loyal 2 Establishment of metrics3 4 5 6 Structure Provide Effective Anti Use of Healthy Good Attrition & “Surprise”Acquisition Service Activation trans Monitoring & Controlling of Actions 6
  7. 7. Understanding “why” customers leave & what 1 keeps them loyal Customer surveys  A priority list of top “exit”  “lost customers” reasons & top “loyalty” criteria  “overall satisfaction surveys”  Preferable broken into Consulting those involved in anti-  Type of exits attrition & customer service  Lapse, transfer...  Call center retention team  Salesforce  Early, late...  Agents  Customer segments Listening to issues on social media  Channels 7
  8. 8. 2 Establisment of Metrics Can’t manage what you can’t measure Metrics of loyalty + metrics of attrition + metrics of activation Metrics of stock versus metrics of flow, [by vintage at best] Absolute versus relative .... but one key metric for each activity for the company.... 8
  9. 9. 3 Structuring Healthy Acquisition (1/2) Embed “realistic” & “strong” attrition criteria to incentive & compensation schemes  Sales force  a mechanism taking into consideration the facts (e.g. turnover)  Agents  commission clawbacks  Call center anti attrition team  incentive model based on retention value not # Usually a big change that needs to be managed carefully.... with some conversion costs... Very strong and immediate impact... 9
  10. 10. 3 Structuring Healthy Acquisition (2/2) Improved targeting of customers via propensity modelling  Analytics team to define “best” customers (retention, collection, activation, value)  Match those with the distribution channels’ potential customers  Structure a flow to sales force to target those leads  Incentivise sales force & customers A big change that involves several teams and delicate data exchange Potentially very strong long term impact... 10
  11. 11. 4 Provide good service on.... Provide good service on.... whatever the customers value most  What customers value & managers think they value may not be the same  What customers value & expect usually differentiate per customer segment  What you choose to do economically, as well, potentially changes per distribution channel as per the “roles & responsibilities”  Measure... Very strong long term impact... 11
  12. 12. 5 Use of “surprise” Enrich customer experience by the use of “surprise”  Customer campaigns  Gift to selected clients  Customer events These actions potentially make “fans” out of your already delighted customer base , (which is also important) but not significantly increase the core loyalty of your customers...... 12
  13. 13. 6 Effective anti – attrition and activation actions (1/4) Dedicated central team in call center for retention  Scripts constantly reviewed  Scripts should be differentiated per exit type  Incentives aligned on value and take into consideration turnover  If possible, provide offers to help retention 13
  14. 14. 6 Effective anti – attrition and activation actions (2/4) Dedicated process for retention  Who does what, when  Different per customer segment & channel of the customer as per the “roles & responsibilities”  May choose to “let go” certain customers, this increases the efficiency...  Effective monitoring & reporting and performance management is key... 14
  15. 15. 6 Effective anti – attrition and activation actions (3/4) Proactive & targeted anti - attrition  is there a statistically significant time to leave,  establish a life cycle action to counter that  Propensity to leave  can you or measure? establish a proactive offer 15
  16. 16. 6 Effective anti – attrition and activation actions (4/4) Activation  Timely contact, based on the preferred channel & time  Customer contact information updateness is key  Some sets of customers are gone, don’t overinvest in activation 16
  17. 17. 7 Monitoring & Controlling of Actions Monitoring & Controlling of all those actions require  dedication  empowerement  Cross functional know – how (pmo, sales, marketing) 17
  18. 18. Results...  Significant increase in the loyalty score of 2012 Understanding “why” customers leave & what generation of customers 1 makes them loyal  Attrition rate decreasing 2 Establishment of metrics by c17% compared to3 4 5 6 2011YE Effective AntiStructure Healthy Provide Good Use of “Surprise” Attrition & Acquisition Service Activation  2012Q4 versus 2013Q1 exits decreasing in 7 Monitoring & Controlling of Actions absolute terms...  Collection rate increased by c10% in 2012  Dormants are at level.... 18
  19. 19. Questions... 19

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