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

1

2

3

4

5

6

7

8

9

10

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