Multi channel CRM activity to improve customer engagement
This credit card client was involved in a very crowded market with little differentiation between competitor products. After a positive onboarding period, the NPS typically declined after month one and 40% of customers are inactive, become dormant or close within one year. Research suggested that customers did not understand the features and benefits of the product. Internally, the typical lead time for direct campaign activity was 20 weeks and this campaign led approach was resource hungry due to the linear process of delivering data and comms development.
The challenge was to investigate opportunities to improve customer engagement and address these constraints.
A methodology was established to execute insight driven CRM that was based on customer needs and a communications plan was created that was built on the touchpoints customers used to interact with the client. This was done in two phases; the first to improve engagement with a proof of concept to test more innovative marketing and second to re-engineer the CRM model to focus on customer needs.
Specifically, a detailed customer journey map was produced, critical drop off points were discovered and a series of automated triggers were put in place to ‘nudge’ the customer along the journey and ensure that they retained and used the product. Examples of these triggers included a confirmation email after application, a welcome pack, an activation prompt, a first statement coming communication and a congratulations on first usage email.
A set of KPIs were put in place to measure success of the activity including communication interaction, product and benefit activation, customer engagement score, impact on core brand metrics and long term commercial benefits
Within the crucial first 3 months, more customers activated their product and made a first transaction with a consequent increase in NPS and retention. This had a significant impact on product profitability and a side benefit of providing the marketing area with a confidence to try new activities based on a customer journey CRM model.