Case Study: Customer Engagement & Retention
Faced with dwindling acquisition and increased closures our client needed to improve their approach to retaining profitable customers, our solution converted dormant accounts into profitable, active customers at a fraction of the cost of new acquisition.
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Achieved a 125% lift in gross activity: |
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Matching offers to customer needs resulted in a 125% lift in gross activity which was still evident six months after the call. |
Situation: When a top 10 small business card company found the effectiveness of their investments in acquisition had dwindled dramatically they began to place an increased importance of managing their existing customer base. Like most card companies almost a third of their existing portfolio was inactive or the client had a low share of wallet The traditional direct mail channel had failed to improve these customers significantly despite numerous attempts to provide a compelling (and low margin) offer that could reinvigorate these relationships.
Solution: Implementing Mindswift enabled our client to establish a dedicated proactive team to discover the winning combination of products and offers. A telephony test environment was established to facilitate a conversation with targeted customers via outbound and inbound calls.
The team targeted accounts with significant potential based on size of wallet and current share of wallet. The team optimized customer engagement by conducting over 700 dialogue tests, focusing on understanding needs, transitioning to the offer and securing commitment for use. Over the course of 90 days the team discovered:
- The key to bypassing gatekeepers to have a direct conversation with the business owner
- Most effective positioning of the call to gain permission to have a meaningful conversation about customer attitudes and needs
- The best set off offers for each customer situation to increase profitable behavior.
Impact: Almost half of business decision makers were willing to have a conversation with us about their business needs and ~20% were willing to accept a new product that better met their needs. Compared to similar direct mail campaigns the phone channel response rate was 18X more effective.
Matching offers to customer needs resulted in a 125% lift in gross activity in subsequent months. Moreover this new profitable behavior was still evident six months after the call. Compared to efforts in the mail channel the Mindswift profitability was 18 times that of direct mail efforts.
