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Define clearly the purpose of the DMTM team

Definition: Direct Marketing

• The practice of delivering promotional messages directly to potential
customers on an individual basis as opposed to through a mass medium.

• Direct Marketing is a promotion mechanism that allows focused messages
to be received by a targeted audience. The main difference between
direct marketing and other promotion is that you can closely qualify your
audience to deliver a message those appeals to their specific needs.

• By definition, direct response marketing is when a business practices
promotions that allow or ask consumers to immediately respond to an
advertisement that has been sent by mail, email, telephone, fax or other
form of communication.

• For some FI, direct marketing means going direct to the customers vs.
intermediaries like agents or brokers.

Various Direct Channels

Frequecy / Response
Customer Reach Message Channel
Timing Rate

Newsletter /
Brief and key
Statement / When they read Limited 0.02% - 0.05% Pull
highlights only
Magazine

Website When they click in Informative When they click in ? Pull

Rely on customer
Take-ones Informative When they visit ? Pull
visits

Updated address & Informative /
As and when
Direct Mail depends on passive 0.2% - 0.5% Push
required
customer interest acquisition

DMTM: A Trend • Trend towards reducing reliance on branches with increasing popularity of ATMs and Internet banking • Bank “walk-in” traffic reduced • “Walk-ins” may not be targeted segment for e. Office workers walk-in during lunch breaks • TM is an important tool to get in touch with targeted customers who do not visit branches Current Marketing Tactic Penetrate banking products into the customer base utilising outbound personalised customer contact as the principal media & then increase value per customer via upgrades and cross-sells Mail - Phone Personalised Customer Contact Loyalty Response rate Campaign Nurture Get of 5%-35% Personalised Personalised Customer Contact Build Customer Contact Upgrade / Add on response rate .g. E.g.20%-30% Cross-sell response rate . CEOs. housewives.20-40% . VIPs • “Targeted segment walk-ins” may not have the time for a financial review. retirees.

20-40% Savings/Investment Linked Products TM Lead Generation “Face to Face” sales Increasing Long Term Value with your customer Retain customers via lifecycle marketing & loyalty bonus benefits Reaping long term profits Increase average premium per customer Recover investment at via cross-sells & upgrades acquisition stage Utilize outbound TM & low cost products to maximize “Existing customers are database acquisition your best prospects” .Marketing Tactic – Evolution Simple Products Mail - Personalised Phone Customer Contact Loyalty Response rate Campaign Nurture Get of 5%-35% Personalised Personalised Customer Contact Customer Contact Build Upgrade / Add on response rate .20%-30% Cross-sell response rate .

Guaranteed acceptance (or very limited t&c) e.Define Specific Business Objectives that the DMTM will work toward Vision: Offering the “right product to the right customer at the right time via the right channel” Telemarketing Products Key Attributes Product Attributes a. Easy to enroll Proven Product a. CaSa c. Easy to understand d. Credit Revolving . Low cost c. Accident & Health insurance b. Simple b. Credit Card & Loans d. FD Investment e.

Credit Accident & Health insurance Direct Lifecycle FD Investmen Marketing CaSa t CC & Loans Current DMTM Structure Mass – RTC Prime existing – RTC Potential Preferred / existing – RTC & mRM New to bank – RTC Future DMTM Break into 2 teams: Team A: Potential Preferred Existing + Prime Existing Team B: NTB + Mass Existing .

How Do We Get Right Product to Right Customer (at right time via the right channel) Quality of Database Strong Affinity • No. . banks base. office and home nos • Updated • Credit Card Number to be provided • Need to avoid asking customer for credit card information – Time consuming – Affect impulse buying – “Trust” Issue…doubts on caller • Bank to provide unique Identification No. Product c. Others e. 1 priority • Sponsors lend credibility (e. Price Threshold d. credit card) • Calls made “from Financial Institutions” always generate higher response rates with less complaints – Affinity with the trusted organization – Customer secure with data usage – Manages Privacy Ordinance concerns Information provided for calls • Availability of mobile. Quality of database b.g.Establishing the key goals / measures of success for DMTM a.

Minimize Insurance Phobia • “Confuse them. Limited space (in DM) b. Lack of face to face personal touch d.g. – Sensitive information How to improve quality of database • Store invalid records / records with limited information for future deduplication with later batches (especially if database owner cannot accept and revise invalid records in their system) • Short survey (3 questions) at end of call to update information Product • Product Attributes – Simple. easy to enroll • Proven Products a. FD Investment e. Credit card no and HKID no. Minimize information request from customers. Automatic monthly deduction d. CaSa c. lose them” . Direct debit c. Accident & Health insurance b. e. E. easy to understand. low cost. Credit Card & Loans d. Facilitate impulse buying . Credit Revolving • Innovative packaging to complement target base • Easy to understand a. Credit card b.Paul Goldbert • Convenient payment mode a. guaranteed acceptance. especially those that are difficult or time consuming to provide. Limited time c.

No questions asked / no CCRIS / CTOS check c. Guaranteed acceptance b. Simple enrolment form d. Ensure price does not exceed premium tolerance level • Easy enrolment a. Ability to enroll over phone Price Threshold • FI TM is based on impulse buying & customers are unlikely to compare benefits but there is an average acceptable premium • Challenge is to constantly test and increase average premium without compromising response rate too much – Also depends on what the objective is : • Higher response rates to build database for future “build” activities • Higher average premium per account Others • Call list to arrive on schedule • Delays may cause TMO turnover & hence affect results • Add buffer for de-duplication • Further details provided in Campaign Management module How Do We Get Right Product to Right Customer • Current a. Analysis of account holders based on basic criteria . Reduces price b. Feedback from TMO c. Based on “past experience” b. • Premiums Paid Monthly a.

therefore greater number of ‘hooks’ into customer • Lower brand attrition and longer customer tenure/retention • Increased customer value .Datamining Apply Sponsor Models Data Outbound Build Campaign List Models Campaign Analysis Execution (Eg Call Ctr) Benefits Analysis Campaign Outcomes • Reduced cost per sale Data • Increased ROI • Potentially reduced losses on certain segment of products over time (selection issues) • Increased value of customers through more targeted ‘build’ programmes • Lower level of customer contact required to deliver commission stream • Lower level of ‘customer exhaustion’ and annoyance • More targeted offers thereby increasing the relevance and brand proposition to customers and prospects • Increased penetration of banking products into base.