Acquiring new customers for a company is a process that involves several stages and strategies. In general terms, it consists of identifying potential customers, attracting their attention, generating interest in the company’s products or services. Persuading them to make a purchase and, finally, building customer loyalty so that they become repeat customers.
In this opportunity our client is one of the most important players in the retail banking segment in Latin America, with a positioning in more than three countries in the region as the largest credit card issuer. It needed to find new clients with strategies different from the conventional ones. In addition, the permanent changes in the personal data protection legislation of the two countries where we would concentrate made it more difficult to contact potential customers without creating a legal contingency. Quite a challenge.
Acquiring new customers: an unconventional success story
Acquiring new customers is essential for the growth and sustainability of any company, as it helps to expand the customer base and increase revenues. In addition, acquiring new customers can also help reduce dependence on existing customers and provide greater revenue diversity.
To effectively acquire new customers, it is important to understand the needs and wants of potential customers and develop a strategy that resonates with them. In addition, it is important to keep in mind that acquiring new customers is not a linear process and can take time. Therefore, it is critical to develop a strategy that includes multiple tactics and channels to reach potential customers at different stages of the buying cycle.
Our client: over the last 10 years, it has been the largest credit card issuer supported by a network of points of sale that allows it to steadily increase capillarity in the areas where it has a presence.
The purpose: its success was becoming increasingly difficult to find new customers. It was necessary to contact nearly 5MM people (non-customers) who qualified from a “credit risk” point of view. But we did not know their propensity to accept the product, nor the updated contact channels. In addition, in order to contact them, it was necessary to have the permission of data protection law beforehand, which was an additional barrier.
The GBA solution: Smart Contact
Smart Data: we built a DATAMART * of contactability in which we integrated all possible sources of data capture (online/offline). We then structure, debug and duplicate this data. We were able to understand: from which prospects we had updated contact data and permissions, from which points this data came from, where we could capture it and through which channel the communication was more appropriate.
Smart Analytics & Smart Geo: we performed different analytical exercises including: cluster analysis, propensity models, demographic segmentation, housefile model for current clients. The use of artificial intelligence reduced campaign execution times and the subsequent recalibration of analytical tools.
The result of these analytical and data exercises was the detailed definition of 16 segments and within these six sub-segments. Within these segments we were able to describe about six main attributes, each one the different population groups through customer profiles.
All of the above had two dimensions:
Data and Geography, since the physical points of sale represented for the customer their most important sales channel and it was necessary to know the “where?”.
Smart Contact: With these inputs and a rigorous exercise, we diagnosed:
Potential contactability, personal data protection law permissions and a segmented channel strategy (Marketing Mix Optimization).
We designed and planned three types of campaigns, which had the following objectives: Capture of data protection law permissions for prospects, increase of contactability for those prospects for whom we already had permissions, increase of the number of customers with high-high and medium-high propensity to accept the product.
Results
Results obtained in the last six months of execution of Smart Contact with respect to the previous 24 months, show that:
Increase in email contactability by 7%.
Increased contactability by cell phone by 4%.
Increased contactability by physical address by 11%.
We found 91,332 duplicate prospects in whom we were investing about 4.1% of the communication budget.
It was determined that 33.11% of the prospect database had inconsistencies, deactivation and non-membership in the registered information, which affected the results of all marketing actions in the different sales channels.
The number of prospects who accepted the product increased by 12.1%, 8.7% and 9.3% in the last three periods thanks to the use of the propensity score.
Increased the use of the last three periods by 3.1%, 4.2% and 6.3% respectively.
Increased the early activation of the last three periods’ vintages by 2.7%, 4.2% and 6.3% respectively.
It is important to keep in mind that acquiring new customers can be costly and require significant efforts and resources. Therefore, it is essential that companies carefully evaluate the costs and benefits of each strategy and focus on those that are most effective for their target audience and budget.
For GBA Smart Marketing®, the value and interpretation of data plays a key role in the development and innovation of our portfolio of customized solutions for each of our clients.
Contact us for more information about our services.
Dejar un comentario