Measure customer engagement with a cluster analysis data tool
A client at a well-known retail bank wanted to go a step further than getting opens and clicks. So it set out to understand how different customer segments engaged with its CRM efforts. Thomas Silk, client director at Profusion, gives a glimpse.
What if you could see exactly how engaged your customers are with your CRM campaigns, every month? The data science team at Profusion has created an invaluable piece of data analytics that does exactly this.
The customer engagement cluster analysis tool, or CECA, separates customers into four pots: highly engaged, semi-engaged openers, semi-engaged interested clickers and unengaged. This is based on their opens, clicks and dwell time (how long they spent reading the marketing campaign). Once done, it’s time to create strategies depending on where the customer segments lie.
Slicing the silent segment
After creating the CECA, we worked with the client on analysing data and understanding why the segments were split as they were. Also, as part of our 12-month strategy proposal, we collaborated with them to incorporate the CECA into the KPIs.
Initially, the unengaged segment stood at 33%. We set a target to cut this by 10%.
In the next step, we put forward strategies related to CRM and customer experience, to roll out through the year. The aim? To create more engaging CRM communications tailored to each segment.
Shrinking pot of unengaged customers
Less than a year on, the unengaged pot is at 26%. That’s almost a 7% decrease so far. With several other CRM strategies rolling out, including updating the preference centre, we’re confident that this customer segment will drop below 10%.
Interested in finding out more? Connect with us.