OBJECTIVE
20% Q-o-Q growth in active customers i.e. 4L inactive customers to be activated on debit card in 3 months (Jan - Mar'20)
APPROACH
Segmenting customers based on their transactional behaviour
The first step was to study the current debit card customers’ transactional behaviour and use that to design an integrated marketing communications plan. We deduced that in order to increase the number of active customers, there are four segments of customers we need to target:
- Debit Card Inactive Customers - Those who have used their Debit Card online/offline but have not in the last 3 months.
- ATM Active, Debit Card Inactive Customers - Those who use their Debit Card to withdraw cash from the ATM but have never used it online/offline for direct payments.
- Active Debit Card Customers - Those who use their Debit Card online/offline at least once in a quarter.
- In addition, LR’s data science team developed an Attrition Prevention model that was able to predict which customers were on their way to becoming dormant or inactive. This allowed us to create and target an exclusive segment of customers.
Multi-channel targeting and incentive-driven behavioural change
Based on the defined target groups, a communication plan was developed including direct and digital marketing channels which included 4 targeted campaigns:
- Reactivate customers who have been inactive for the last 3 months
- Activate customers who use their debit card only at the ATM
- Sustain customers who actively use their debit card every quarter
- Prevent active customers who are likely to become inactive in the quarter
Customers within each target group were reached out to on the channel of their preference to ensure maximum channel effectiveness. To drive sustained behavioural change, an incentive structure was also part of the communication plan - exclusive offers from the bank in top transacted categories and Bonus Reward Points on transactions.
Insight & affinity-based creative approach
With Federal Bank’s audience largely based in the state of Kerala and a majority of them falling in the age group of 25 to 45 - the creatives were designed to resonate with the bank’s aspirational positioning and persona of a young, urban customer. Through historical transactional data, we also learnt of the top spend categories among customers allowing us to focus the communication on the same to drive spends.
