E-Retailing Approach Customer Acquisition and Retention Webinar
Customer retention… better than acquisition
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Transcript of Customer retention… better than acquisition
ARE YOU STILL COMPETING ON PRICE? Customer retention… better than acquisition.
Paul Lewis
Customer Experience Specialist
Pitney Bowes
The cost of acquiring a new customer over retaining
an existing one. Retention marketing has today
become a core business requirement.
The Consumer Perspective Treat each customer as an individual and increase the
effectiveness of your customer experience program.
Increasing Levels of Competition The act of acquiring new customers has become more challenging than
ever before. Competing on price is no longer a sustainable business model.
Adopting a Customer Centric Business Approach Relationship based marketing and communications to drive customer engagement
Today’s Multi-Channel
Delivering a consistent, joined-up experience.
World of Interaction
Maximise the Value of Customer Relationships
Customer
Communications
Maximise
Relationships
Data
Management
Customer
Insight
Achieving customer centricity through acquisition, and retention strategies
What we Enable
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
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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
The Consequences of Getting it Wrong!
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
The Consequences of Getting it Wrong!
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
Customer Centricity via Interaction
and Communication Management
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
Transactional or
You Decide! Relationship Based…
Find out More…
Socialise with Pitney Bowes
Learn how leading insurance provider improved
renewal rates by 6% through the orchestration
of customer journeys and communications.
Tryg Insurance Video Case Study