Database Reference
In-Depth Information
As for the offers and incentives granted to customers, the adopted approach
included their adjustment to the distinct customer profiles portrayed by the
revealed segments. For instance, the bank encloses promotional brochures detailing
special prices and deductions for its customers in the monthly mailing of their
balance statements. This promotional material was tailored to each segment's
purchase profile, instead of flooding all the customers with every offer. Similarly, the
bank's up-selling and churn prevention campaigns include the offer of incentives
for promoting usage and inhibiting attrition, respectively. These incentives were
adapted to each segment's particular characteristics. For instance, a member of
the ''Travelers'' segment should be included in a draw for air tickets, or a member
of the ''Fun lovers'' segment in a draw for concert tickets, provided they increased
their card spending.
The segmentation results were also used in new product development and
the offer of customized products and reward programs. The selected strategy
involved offering specialized types of cards, with suitable rewards covering the
differentiated needs of customers.
''Telcos fans,'' for instance, appeared to use their card mainly to pay for
telecommunication services. Thus, the adopted marketing strategy included the
bank's partnership with a telephone operator in the development of a new
''telcos'' card. This card bore the operator's logo and could also be issued at the
provider's points of sale. It incorporated a reward scheme that offered reduced
telecommunication fees or free call minutes if the total card purchases exceeded a
specific amount.
For the ''Family men'' of segment 3, the bank's proposition included a
card with rebates and gift certificates based on card usage at gas stations and
supermarkets.
A travel-oriented card was the bank's offer to the ''Travelers'' segment.
Partnerships with specific airlines, travel agencies, hotels, and car rental companies
made it possible to offer specific benefits to frequent travelers. For instance,
customers could take advantage of the card's reward program and use their cards
to collect air miles or get a special booking discount at a partnering hotel. The
card's benefits also included the offer of travel insurance when traveling abroad.
Additionally, the bank started to address these customers through its subsidiary
travel agency and to send them travel offers on a regular basis. All customers
began to receive a leaflet on travel bargains and the card was further advertised at
airports, on travel Internet sites, and in magazines.
A new cardwas also developed for the ''Mature users'' segment. Benefits of this
card included zero-rate installments and discounts on purchases at partnering home
stores. Moreover, as members of this segment had shown high spending on health
expenses, the bank also partnered with an insurance company to include health
benefits in the card's advantages, such as increased credit limit for health expenses.
Search WWH ::




Custom Search