Cannes Lions

RETAIL ELECTRICITY

GREY DIRECT, Oslo / OSLO ENERGI / 2003

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Credits

OVERVIEW

Description

Our strategy was to create a platform for differentiated communication and customer handling by making a foundation for loyalty building towards the right customers. We wanted tooffer relevant information to each customer segment. By identifying the value of each customer group we were able to target sell to customers with high potential for new services. To maximise life time value of the customer we implemented proactive activities towards defined customer groups using an optimised mix of dm and tm related to the customers value and lifecycle.We developed two types of dialogues: Fixed (e.g. welcome, invoice explanation, cross sales and questionnaires) and action based (e.g. confirmations, moving package and termination).

Outcome

The results prove that a CRM approach toward the market really works! We can show great results such as: 1. Increased share of top customers by 52.9%2. Increased loyalty (netto movement to a higher segment) by 10.2% Results on some of the dialogues: TrippEL insurance (TM/DM), 15% accepted offer. Questionnaire top and pot.top, 35% response. Follow up program (on questionnaire), 50% sales on alarm leads. 25% sales on EL-check leads. Response automatic payment dialogue, 5%.

Churn dialogue, 16% response.3. Improved profit margin per customer with 2.8%. Reduced churn: Low value customers, 37% higher churn than average.Potential top value customers, 21% higher churn.

Active low value customers, 32% lower churn.

Top customers, 42% lower churn.