Occasionally an extra push is required to motivate customers to extend their current contract. This is especially the cast in the private lease market, consumers are frequently triggered with commercial promotions. Flowresulting conducted research to establish which (price) promotions are most effective in retaining customers.
Result: >10% increase in conversion
With the results of the study and flowresulting’s advice, VWPFS managed to improve their retention strategy for various car brands (AUDI, SEAT, ŠKODA and Volkswagen) and target groups. New price promotions were implemented and both the content and look-and-feel of digital communication (e.g. website and mailings) were improved. The result: >10% increase in conversion.
The study answered the following questions:
- What type of promotion is most effective?
(e.g. cash discount, free fuel, driving a new car for free, etc.)
- How should promotions be articulated?
(e.g. €500 fuel credit, half a year of free fuel or fuel for 6,000 km)
- How can we target more effectively?
(e.g. drivers of different brands, age, gender, contract duration, etc.)
- Which psychological / influencing principles can we use to increase conversion?
(e.g. how do we employ the principles of scarcity, reciprocity and social confirmation?)
- Which ‘best-kept secrets’ should we communicate better?
(e.g .which important proposition elements are not well known to customers?)
In an online survey, various offers were presented to hundreds of customers. Advanced research methods provided insight into the attractiveness of different promotions and the probability that promotions actually result in conversion.
Figure 1. Simplified example of results.
flowresulting shows that they understand the goal and the contact of the customer, which leads to concrete results which can be implemented directly