Business to Consumer: Inc Direct and Eclipse GB's campaign for Scottish Power

Objectives

Reduce customer attrition during the critical first 90 day period, create an exceptional first impression, mitigate competitor winback, improve customer satisfaction, reduce customer inbound and outbound calls, deliver cost-effective comms strategy and increase responses to online requests.

Strategy and targeting

Energy consumers switch suppliers; customer attrition varies depending on: route to market, product, payment method and market dynamics but is driven primarily by previous suppliers’ winback activity and buyer’s remorse. The first 90 days after a sale see the most customer losses, and service is the main driver of satisfaction for 73% of new customers. We had to demonstrate excellent customer service to have maximum impact on churn. Our pilot targeted customers acquired through doorstep sales, where winback activity’s at its most competitive. The initial pilot was focussed on Direct Debit customers, a high value customer group. Previously new customers received a disjointed mix of up to eight generic letters with various static leaflets. We tailored comms to the individual customer and deployed a media mix to maximise integration, moving away from print-only comms, introducing a logical and timely mix of email, print and Personalised URLs (PURLs). It was critical to address buyer’s remorse, mitigate high levels of competitor winback activity and increase perception of excellent service and early stage loyalty. It was also imperative to make the client feel valued by providing specific information rather than a plethora of often irrelevant static information. Not only has this campaign allowed greater retention and improved perceptions, it’s opened up this increased intelligence to improve the communications we issue.

Database

PURLs allow customers to interact and allow us to obtain information, particularly data collection and analysis, to gauge behaviours of different segments, allowing us to target future communications more effectively. Up to 50% of visitors to the relevant PURLs completed feedback surveys, revealing improved satisfaction levels and allowing further improvements to design and content.

Results

39% reduction in attrition using PURL. 81% reduction in cancellations using PURL. 12% reduction in inbound calls. 59% email open rates and 64% click-through rates. Improved customer satisfaction: Control=7.67, PURL users=8.17 (out of 10).