Customer Engagement Solution

Transcription

1 Solution Overview Customer Engagement Solution Improved One-to-One Marketing Channel Optimization Easy-to- Measure ROI Regulatory Compliance Simple End-to-End Solutions for Targeting and Executing the Right Offers any payment, from anywhere, at any time, through any medium

2 customer engagement solution Does your customer base respond as well as you d like to your company s offers? Identifying which consumers are more likely to respond to certain offers can help you maximize the effectiveness of your campaigns.

3 Help inspire your customers to take action by designing and implementing specialized one-to-one marketing campaigns. By incorporating proprietary analytics to segment your customer base and choose the best delivery channels, we can help you along each step of strategy design and execution. A seamless integration of our premier tools and processes provides a unique, all-encompassing solution to optimize your campaign efforts. Easy-to-measure return on investment (ROI) and continuous effort optimization help ensure you meet and exceed your goals. TSYS, an industry leader in payments, offers simple end-to-end solutions for targeting and executing the right offers. We specialize in combining optimal offerings with the right customer segments at the right time through elite segmentation strategies. At TSYS, we believe that acquisition and activation tactics have evolved from the days when the financial industry used the same static, one-size-fits-all approach. Our program enables you to increase profits from a decreasing pool of viable clients. The Benefits For marketing: Improved one-to-one marketing of your offerings. The key is to replace basic personalization with timely, relevant messaging to more effectively communicate and make offers to customers on an individualized basis. Ad revenue generation and crosssell opportunities for statements and e-statements. Documents like statements enjoy uniquely high levels of readership by your customers. We help our clients take advantage of the fact that about 95 percent of transactional documents are opened and read, according to InfoTrends 1. We can manage and broker white space on your correspondence, filling previously wasted blank space with prompts to act on intra-company cross-selling offerings. We can also help generate ad revenue from your commercial partners or other third parties. Easy-to-measure ROI. You can measure and compare ROI by analyzing different efforts to determine which ones have the best ROI. We can help you expand them to a larger population in your target market. Channel effectiveness. We recognize that the more avenues you have available to reach your customers, the more likely they ll be to receive your offers. Some consumers respond better when communicated through IVR; others prefer and even more may prefer mobile 1 InfoTrends August 20, 2007 Strategic Assessment

4 The Process Step 1 Define and establish goals for your campaign. What measurable goal would you like to meet? For example, increased recency (last usage), frequency and monetary value, or perhaps increased cross-selling, improved customer loyalty, or additional wallet-share. Step 2 Analyze and segment existing customer database. Segment customers into similar groups and create control and test groups with differing offers, such as APR rates or redemption time lengths. Establish key customer behaviors for card usage and the preferred method of contact. For TSYS accounts, the data and criteria available to segment are readily-accessible resources, facilitating easy-to-build predictive models. Step 3 Design the messaging and offerings for a variety of channels and deliver from any or all channels. These include real-time interactive voice response (IVR) or customer service scripts, , SMS-text for mobile or traditional mail. Step 4 Receive and collect responses to offers and measure the ROI of campaign. Step 5 Analyze the results, contrasting and comparing the test and control groups. How did results compare to the goals defined for the campaign? You can modify offerings based on your analysis and expand the campaign to additional groups within each segment. Step 6 Track s of different segments. Compare the control group with baseline offer and the test group with a different offer. For example, use convenience checks with 15% APR for the control group and give other sub-segments a lower APR. outreach when compared to traditional printed mailings. We can help determine which channels are most effective for each of your individual customers. Retention of your best customers. We can design and track the efficiency of your retention campaigns, such as loyalty and rewards points. For operations: Simpler vendor/partner management. You ll benefit from a single-source solution with one point of accountability for statements, payment cards, e-statements and e-messaging, IVR and customer service. Security. You ll have the comfort of working with the industry s standard bearer for data security. Our security exceeds industry standards and we ensure that no external data is transmitted to third parties for data analytics, IVR or live customer service agents, , card and card mailer production. We even offer on-site USPS mailing facilities. Regulatory Compliance. We are ready for impending legislation and regulations from all levels of government so you need not invest as much money or resources. We closely monitor the increasingly regulatory environment and how it impacts our clients communications. Reduced costs. Among several ways to reduce costs are decreased call center expenses and improved postal rates. Decreasing call volume to your customer service agents can be accomplished through improved messaging in different communication channels, including mobile, , IVR or print. TSYS clients can take advantage of the latest tools and technology to receive highly discounted postal rates for their print-based initiatives. The Process In Practice Example #1: Increase spend among top 10% customers. Step 1 - Goal definition: Increase wallet share of your top 10 percent of customers by 5 percent. Type of Account Holder Accounts Portflio % Big ticket but infrequent 321, % Front of wallet 612, % Day to day 175, % Inactive 908, % Revolver only-no purchases 225, % Low usage 302, % Step 2 Segmentation: Segment 10 percent using FICO or other scoring tools. Step 3 Strategy design and implementation: Offer a 2 percent discount in APR for future spend with control and test groups of differing percentage discounts. Implement the strategy among different channels such as or e-statements, mobile, statements/ printed documents or real-time customer service script. Step 4 Measure ROI: You can immediately track s instead of measuring the dollar value of respondents in an ongoing way. You can also compare and contrast the costs of offering lower APR rates to customers of varying risk. any payment, from anywhere, at any time, through any medium

5 Design 3 Design 3 Use Analytics to segment and customize 2 4 Receive Responses Use Analytics to segment and customize 2 Design 3 4 Use Analytics to segment and customize 6 Track Receive Response Responses Rates 2 5 Analyze Results 4 Receive Responses 6 Track Response Rates 5 Analyze Results 1 Define Goals 5 Analyze Results Control Group Test Group 1 Test Group 2 Test Group 3 Offer 0% discount in APR 2% discount in APR 3% discount in APR 4% discount in APR Result 500 responses 20% increase in 60% increase in 80% increase in Steps 5 and 6 Analyze differences in control and test groups: Use findings in the next campaign to optimize new efforts and increase s. Example #2: Reactivate your most promising inactive accounts. Scenario: You ve already spent upwards of $150 to acquire your customer. Do you want to lose the initial investment or incent your customer to reengage with the card? Step 1 Goal definition: increase recency (the last time your customer used your card) by 30 percent of your highest 20 percent of risk-worthy clients. Step 2 - Segment 20 percent of the 908,007 inactive card users with FICO and other scoring tools to target 181,601. Step 3 Strategy design and implementation: Offer a $10 prepaid card to a control group and activate it when the consumer spends $100 on a credit card you d like reactivated. Offer differing value prepaid cards in test groups. Implement the strategy among different channels such as or e-statements, mobile, statements/printed documents or real-time customer service script. Step 4 Measure ROI: You can immediately track s instead of measuring the dollar value of respondents in an ongoing way. You can also compare and contrast the costs of offering different value prepaid cards to customers of varying risk. Steps 5 & 6 Analyze the differences in control and test groups. Use findings in the next campaign to optimize new efforts and increase s. Type of Account Holder Accounts Portflio % Big ticket but infrequent 321, % Front of wallet 612, % Day to day 175, % Inactive 908, % Revolver only-no purchases 225, % Low usage 302, % Effort 1 Effort 2 Effort 3 Offer $5 Prepaid card $10 Prepaid card $15 Prepaid card Result 3% increase in 4% increase in 10% increase in

6 governmental regulatory concerns TSYS has a team dedicated to closely watching legislation being considered in Congress. As a strong partner, TSYS is positioned to support your compliance needs in a proactive rather than reactive nature. Expertise and Integration. With each step of the process, we employ a unique blend of proprietary tools and expertise to help you get the most out of your campaign efforts. With more than 25 years of experience, TSYS Output Services provides industry-leading print, payment card and electronic document solutions for multiple industries that range from financial services and insurance to health care, retail, and communication. With regulatory, data security and personalization requirements on the rise, TSYS is a trusted business partner that manages billions of business-critical documents and payment cards securely and efficiently for many of the best organizations in the world. any payment, from anywhere, at any time, through any medium

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8 One TSYS Way Columbus, GA About TSYS As one of the world s largest payment services companies, the people, service and technology of TSYS enable hundreds of millions of consumers globally to navigate their lives with confidence and convenience everyday. TSYS (NYSE: TSS) offers unmatched flexibility, quality and control through a broad range of issuing and acquiring payment technologies, including consumer-finance, credit, debit, debt management, healthcare, loyalty, prepaid and other related services for financial institutions and retail corporations in any global region. TSYS global headquarters are located in Columbus, Georgia, with other local offices spread across the Americas, EMEA and Asia-Pacific. TSYS serves more than 300 clients in 75 countries, including relationships with 11 of the top 20 international banks. The people of TSYS are respected around the world for the spirit of true partnership they invest in every relationship and business decision. By the passion they bring to the world of payments, the people of TSYS are known as good people to do business with. Get to know us at tsys.com, or contact us at to learn more about how we can serve as the trusted agent in your payment strategies. asia-pacific commonwealth of independent states europe +44 (0) india & south east asia japan middle east & africa +971 (4) north & central america, mexico & the caribbean south america Total System Services, Inc.. All rights reserved worldwide. Total System Services, Inc., and TSYS are federally registered service marks of Total System Services, Inc., in the United States. Total System Services, Inc., and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. (06/2009)