Client:
A major Indian Bank with about one million credit card customers.
Challenge for client:
Increase Credit Card Spending by customers to augment swipe fees besides the existing revenue streams of annual fees, interest on incomplete payments and merchant charges for transactions.
Issues involved:
A measure was needed to deviate from blunt and direct measures like cash back on transactions and discounts which spread the marketing budgets a bit too thin.
Client wanted a micro-focused intervention campaign with minimized intervention costs and maximized ‘bang for marketing buck’.
Aspect Ratio Approach:
Analysed each customer on the basis of recency, frequency and monetary spending value per month (RFM).
Assigned an ‘RFM’ value to each customer.
Special Offers were designed for each category where a spending weakness was located – these included ‘WOW’ offers for lost customers to be lured back(weak R), incentives for increased monthly transactions(weak F) and incentives for increased monthly spending (weak M).
These incentives were offered with monthly billing in order to reduce intervention costs for the client bank.
An additional separate analysis was carried out to identify ‘Merchant Category’ of spending and cross-category offers were sent to customers to increase their spending on alternate categories and to increase the share of wallet across all categories.
Client:
A chain of beauty salons.
Challenge for client:
Acquire and widen the customer base for their premium end services.
Issues involved:
Sending introductory offers to all the customers was an expensive proposition.
Aspect Ratio Approach:
Analysed customers who were currently buying premium services.
A cluster analysis was run on these customers.
Clusters were formed around pin codes, age and other products/services purchased.
Introductory offers were sent only to select clusters.
This specifically targeted action plan yielded a higher response than it would otherwise have had the exercise been conducted randomly on all present customers.