BNP Paribas Cardif Turkey, a case study of Loyalty & Anti-Attrition program targeting life & pension customers with spesific results...

1. Achieving Customer Loyalty in Savings
a case study from Turkey
Uğur Çağlar
BNP Paribas Cardif, Turkey
CMO & Head of Agents
April, 2013
Barcelona

2. Agenda
• brief introduction
• achieving customer loyalty
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3. BNP Paribas Cardif Turkey
 100% subsidiary of BNP Paribas Cardif, part of BNP Paribas Group
 Operating in TR since 2007, acquired Fortis Pension & Life in 2010
 Providing pension, life protection, life saving, personal protection insurance
BNP Paribas Cardif Turkey - Channel Based Structure
BNP Paribas Cardif Hayat Partners
BNP Paribas Cardif Sigorta Partners
TEB [Retail Bank]
BNP Paribas Cardif
Emeklilik
Tied Agents
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4. Agenda
• brief introduction
• achieving customer loyalty
4

5. Introduction
 Experience mainly based on retirement products (pensions)
 All of them tried & tested...
 interaction, welcome...
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6. Achieving Customer Loyalty in Savings
Understanding “why” customers leave &
1
what makes them loyal
2 Establishment of metrics
3 4 5 6
Structure Provide Effective Anti
Use of
Healthy Good Attrition &
“Surprise”
Acquisition Service Activation
trans Monitoring & Controlling of Actions
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7. Understanding “why” customers leave & what
1
keeps them loyal
 Customer surveys  A priority list of top “exit”
 “lost customers”
reasons & top “loyalty” criteria
 “overall satisfaction surveys”
 Preferable broken into
 Consulting those involved in anti-
 Type of exits
attrition & customer service
 Lapse, transfer...
 Call center retention team
 Salesforce  Early, late...
 Agents
 Customer segments
 Listening to issues on social media
 Channels
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8. 2 Establisment of Metrics
 Can’t manage what you can’t measure
 Metrics of loyalty + metrics of attrition + metrics of activation
 Metrics of stock versus metrics of flow, [by vintage at best]
 Absolute versus relative
 .... but one key metric for each activity for the company....
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9. 3 Structuring Healthy Acquisition (1/2)
 Embed “realistic” & “strong” attrition criteria to incentive &
compensation schemes
 Sales force  a mechanism taking into consideration the facts (e.g. turnover)
 Agents  commission clawbacks
 Call center anti attrition team  incentive model based on retention value not #
 Usually a big change that needs to be managed carefully.... with some
conversion costs...
 Very strong and immediate impact...
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10. 3 Structuring Healthy Acquisition (2/2)
 Improved targeting of customers via propensity modelling
 Analytics team to define “best” customers (retention, collection, activation, value)
 Match those with the distribution channels’ potential customers
 Structure a flow to sales force to target those leads
 Incentivise sales force & customers
 A big change that involves several teams and delicate data exchange
 Potentially very strong long term impact...
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11. 4 Provide good service on....
 Provide good service on.... whatever the customers value most
 What customers value & managers think they value may not be the same
 What customers value & expect usually differentiate per customer segment
 What you choose to do economically, as well, potentially changes per distribution
channel as per the “roles & responsibilities”
 Measure...
 Very strong long term impact...
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12. 5 Use of “surprise”
 Enrich customer experience by the use of “surprise”
 Customer campaigns
 Gift to selected clients
 Customer events
 These actions potentially make “fans” out of your already delighted
customer base , (which is also important) but not significantly increase
the core loyalty of your customers......
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13. 6 Effective anti – attrition and activation actions (1/4)
 Dedicated central team in call center for retention
 Scripts constantly reviewed
 Scripts should be differentiated per exit type
 Incentives aligned on value and take into consideration turnover
 If possible, provide offers to help retention
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14. 6 Effective anti – attrition and activation actions (2/4)
 Dedicated process for retention
 Who does what, when
 Different per customer segment & channel of the customer as per the “roles &
responsibilities”
 May choose to “let go” certain customers, this increases the efficiency...
 Effective monitoring & reporting and performance management is key...
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15. 6 Effective anti – attrition and activation actions (3/4)
 Proactive & targeted anti - attrition
 is there a statistically significant time to leave,
 establish a life cycle action to counter that
 Propensity to leave
 can you or measure? establish a proactive offer
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16. 6 Effective anti – attrition and activation actions (4/4)
 Activation
 Timely contact, based on the preferred channel & time
 Customer contact information updateness is key
 Some sets of customers are gone, don’t overinvest in activation
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17. 7 Monitoring & Controlling of Actions
 Monitoring & Controlling of all those actions require
 dedication
 empowerement
 Cross functional know – how (pmo, sales, marketing)
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18. Results...
 Significant increase in the
loyalty score of 2012
Understanding “why” customers leave & what generation of customers
1
makes them loyal
 Attrition rate decreasing
2 Establishment of metrics
by c17% compared to
3 4 5 6
2011YE
Effective Anti
Structure Healthy Provide Good
Use of “Surprise” Attrition &
Acquisition Service
Activation  2012Q4 versus 2013Q1
exits decreasing in
7 Monitoring & Controlling of Actions absolute terms...
 Collection rate increased
by c10% in 2012
 Dormants are at level....
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19. Questions...
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