Electricity is a commodity product, differentiated almost exclusively by price – exacerbated by the Electricity Authority’s “What’s My Number” campaign encouraging switching to save money.
As a result, the electricity industry in New Zealand is pretty much the most competitive in the world.
Expensive acquisition programmes rule: providers race to fill their leaky buckets, offering huge switching bonuses and stirring unrest amongst existing customers who get pretty much nothing. But Mercury believed in changing the game: persuading customers to stay loyal, by treating them well – obviating the race to the bottom amongst all the other providers.
Yet customers spend barely 9 minutes annually engaged with their provider (most of that paying bills). Why would they want to hear more from Mercury?
To break through, new loyalty offers were created – and a way of communicating them – that beat all projections. Mercury used multi-channel CRM to talk to their existing customers via a test and learn, list-driven retention campaign over the high churn months, gaining:
- improved redemption rates
- an increase in customer satisfaction for offer recipients
- churn rates dramatically reduced against the uncontracted Mercury customer base
- extraordinarily low cost-to-retention quotient
- new customer behaviour discoveries
- massively positive stories
- a programme that can run for years.
Proof that using multi-channel CRM to treat your customers right plugs a whole lot of holes.