Working with our partner, a Japanese credit card company, and a domestic insurer, the MPM Japan business applied a three-phased data modelling strategy to credit card holders who had been ‘over-marketed’ to by other marketing services providers for many years.
With access to more than 1.7 million members (holders of selected credit card products who met the very basic criteria to be included in a telemarketing program), MPM achieved significant increases in net revenue for our client during a six-month period, compared to campaigns being executed by other marketing service providers.
Significant improvements were tracked across a range of metrics, including:
In addition to the positive revenue impact for our client, other achievements included reductions in cost per sale and an overall improvement in customer experience which resulted in significantly lower complaints and negative feedback received throughout the marketing period.
It was evident that a number of our clients prior partner insurers and intermediaries had ‘over-marketed’ to their client base.
These broadscale campaigns may have resulted in a series of temporary revenue increases; however, over several years, an overall reduction in sales and revenue from the insurance sales channel was evident. Customer complaints were increasing and profitability targets were not being achieved. The telephone sales representatives also did not see the credit card company’s sales programs as a progressive program to work on. As a result, morale was decreasing.
With more recent renewed growth in the number of cardholders and acquisition of a number of new business partnerships, MPM saw an opportunity to work with our client in introducing a revised program of activity. We incorporated a new level of sophistication to the data selection process, underpinned by MPM’s Campaign Factory functionality. Being a credit card company, there was access to rich customer demographic and financial information.
MPM was tasked with implementing a phased data modelling program that would result in improvements in the following categories:
Six credit card products from their suite of card products were selected, providing a significant customer volume to run the program.
The first phase of activity involved MPM engaging in an exploratory data analysis and identifying a moderate volume of card customers to run two initial campaigns. Only a basic level of data segmentation and targeting was used.
The aim was to attain a series of learnings and use these as ‘control’ cells to benchmark more sophisticated ‘modelled’ campaigns as we progressed with further phases of the program.
|Phase 2||A third campaign was then implemented, with a slightly more involved level of data segmentation based on some of the key attributes of responders from our initial campaigns.|
MPM’s sophisticated modelling methodology was then applied to the third phase of activity, which used historic results from previous campaigns to develop predictive models to help identify the most responsive customers within the available customer universe. In summary, this involved four parts:
Campaign plans across the coming months were then generated from the scoring and profitability forecasting.
There were notable increases in several metrics when the earlier ‘non-modelled’ campaigns were compared with those developed through the data modelling initiative. Against the control cells:
Contact rates increased by 18%
Sales per contact rates increased by 300%
Sales per hour increased by 211%
Contact rates increased by 59%
Sales per contact rates increased by 395%
Sales per hour increased by 317%