Ask The Expert Featured Article

October 01, 2012

How to Achieve a Greater ROI in a Challenging Economic Market

By TMCnet Special Guest
Steve Brubaker, Chief of Staff, InfoCision Management Corp.

This article originally appeared in the Sept. issue of CUSTOMER magazine.

During these tough economic times, it’s not enough for a direct marketing partner to just answer the calls or send mass mailings; it takes creativity to generate ROI. Today, more than ever it’s critical for a company to partner with a company that has the ability to use Business Intelligence and technology when managing customer retention, acquisition and customer service programs to generate a greater ROI for your marketing dollar.

Leveraging your call center’s data

There have been great advances in the way consumer information is collected and applied, especially in the contact center environment. Every time a customer contacts you, makes a purchase or responds to a direct mail campaign, they are telling you something. Through data acquisition, you have the unique opportunity to listen to them.

The more data you collect, the better you can pinpoint customer need and use it to enhance the customer experience.

It’s not enough for a call center partner to have the data; it’s knowing what to do with it that produces a higher ROI. Using demographic, psychographic and transactional data is critical to maximizing the possibilities for creativity in a phone call or direct mail campaign.

On the phone, using data and technology to determine service level differentiations and boost conversion rates, improve customer service and customize real-time scripts will increase customer value and drive long-term growth. Transactional data, which is the historical purchase and call data on a household, can be used to determine best time to call strategies, up-sell and cross-sell opportunities as well reduce churn.

In direct mail, you can use data to create customized messages that speak directly to the individual. Online, you can generate personalized URLs so every customer receives a one-to-one Web experience. The opportunities to positively enhance the consumer experience by leveraging data are endless.

Capitalizing on your resources

During this economic downturn, customers are careful how they spend their money, so it is important to know what they want. With a little creativity from your direct marketing partner, you can create a message that is relevant to your customer and produces a higher ROI for your company.

A perfect example of how applying consumer data can drive ROI is a program InfoCision (News - Alert) worked on with a leading wireless provider that was looking for a more cost-effective way of recognizing and retaining customers. Their existing strategy was sending a single-channel, direct mail piece to almost all of its 30 million customers, which was leading to increased cost and diminishing retention rates.

They turned to InfoCision for suggestions on cost savings and increased retention.

With the client spending $130 to save just one customer, InfoCision knew there was plenty of room for improvement. InfoCision’s account management team, along with our Business Intelligence Group, designed a three-tiered retention strategy using text messaging, direct mail and phone. The goal of the program was also threefold – to increase retention, increase ROI and decrease renewal traffic to their retail stores, which are primarily used for acquisition.

Long story short, by using the big data already at our disposal, our Business Intelligence Group developed a criteria and an application to accurately identify and filter the client’s customer database.

We were able to save over 150,500 customers, nearly 60 percent more customers out of those who would have abandoned the provider. With a dramatically lower cost to save each customer – $14.65 compared to $130 – the return on investment increased significantly. The increased sales revenue realized from the saved customers was an impressive $161,837,687 compared to $96,130,800 prior to the campaign.

The bottom line is that customer care will continue to expand in scope and grow more challenging as we move into the future. By integrating consumer data and technology, you can build outstanding interactions that will enhance brand value and drive a higher ROI.

The bottom line is that customer care will continue to expand in scope and grow more challenging as we move into the future. By integrating consumer data and technology, you can build outstanding interactions that will enhance brand value and drive a higher ROI.




Edited by Braden Becker


Related Contact Center Solutions Articles

    Appeals Court OKs Redbox's Customer Info Disclosure to Third Parties

    The U.S. Court of Appeals for the Seventh Circuit, based in Chicago, has given its approval of Redbox's practices for disclosing customer information to a third party regarding customer service issues. [ Read More ]
    10/31/2014

    On How to Avoid Challenges and Added Costs of Open Enrollment Period for 'Obamacare'

    If you live in the U.S., consider this a type of public service announcement. We are about to enter the open enrollment period for 2015 as part of the continuing rollout of the Patient Protection and Affordable Care Act (PPACA), which has become better known as "Obamacare." As we are all aware, the initial rollout of Obamacare was problematic-to put it politely. However, the good news is that, thanks to some great work by the IT industry experts called in to fix it, healthcare.gov is working bet… [ Read More ]
    10/31/2014

    Getting Ready for the Holiday Rush-The Role of Customer Experience Transformation

    It should be no surprise to anyone that the holiday season is fast-approaching, which means "all hands on deck" in the contact centers of retailers. And, as we move into what can best be characterized as the "Omni-channel Era" when it comes to providing a compelling customer experience, retailers are busy transforming virtually every aspect of how to provide such experiences. [ Read More ]
    10/31/2014

    When it comes to Contact Center Agents 'Mind the Gap'

    As content curator and contributor to the Contact Center Solutions Community, part of my function is to review information and insights from around the Web and illuminate them to our readers. In this regard, I would like to recommend an insightful posting from IT-Online titled, "How to differentiate customer experience." [ Read More ]
    10/30/2014

FOLLOW US

Contact Center Solutions Glossary of Terms

Featured eBook

    All Things Customer Interaction Solutions eBOOK
    It has been said that customer interaction centers are the front door to any organization's value chain. This is an accurate description of the transformations taking place in contact centers as a result of enhancements in multichannel communications, speech analytics, IVR capabilities, integrations with unified communications capabilities (UC) and other collaboration tools and applications, and the move to the cloud...

Featured Whitepaper

    Microsoft® Lync® in the Contact Center: Integrating with Customer Interaction Center™ to Provide a Barrier-free Customer Experience To implement contact center functionality, organizations using Microsoft Lync Server 2010 can follow the unified communications blueprint of open standards interoperability and integrate to a contact center solution of their choice. Customer Interaction Center (CIC) from Interactive Intelligence is a proven best of breed contact center solution that merits consideration ...

Featured Success Story

    Contact Center Solutions Featured Success Story
    Interactive Intelligence all-in-one IP communications software suite integrated with Microsoft Lync helps Bentley save $200,000 annually.

Featured Product Demo

    Contact Center Solutions Interaction Analyzer™
    Interaction Analyzer™
    Real-time word and phrase spotting. Alerting. Analytics. Scoring. Coaching. Watch how Interaction Analyzer turns every moment, of every past and present call, into data that lets you deliver an exceptional customer experience.

Featured Resources

Ask the Expert