Paymark (the payments gateway for 75% of all NZ merchants) processes over 2.4 billion transactions per year at the point of sale and, as a result, had an overwhelming amount of data on New Zealand businesses housed in one of the largest data sets in New Zealand.
Paymark’s core traditional business model of over 20 years was under threat from disruption by multiple forces.
There was a need to future-proof the organisation, through the creation of a data-driven customer segmentation which would build tangible customer relationships and achieve a wide range of commercial objectives spanning brand and communications, product and technology, sales and service and financial.
A truly innovative and world class approach was used to build Paymark’s segmentation, blending a range of techniques including advanced ‘big data’ analytics, third party data enrichment and quantitative and qualitative research to produce the final segmentation of New Zealand’s retailers.
This was then mapped back to the customer base to enable effective segmentation and targeting of customers.
The segmentation pushed beyond the boundaries of traditional approaches, creating a usable and human segmentation that is now the largest, most accurate segmentation of the New Zealand retail market.
The business results for Paymark were outstanding, including:
· An uplift in customer Net Promoter Score by 15 points
· Targeted direct communications by segment, with 80% click through rates and 15% uptake on a new product bought to market
· A targeted CRM system which identified cross-sell opportunities by segment, leading to an uplift in a new product to market connections by 100 since launch
· Proactive identification of customers at risk of churn
· Positive operating revenue, EBITDA and net earnings performance
Paymark is now a truly ‘customer obsessed’ organisation, better equipped to face a new future.