The client, a global luxury hotel chain, turned to HGS for pay-for-performance-based sales service for their loyalty membership programme. Their objective for HGS was renewal increase of existing memberships and acquisition of new customers for the loyalty programme.
1. HGS implemented end-to-end lifecycle process management enabling process enhancement.
How We Do It
We ensure engagement and coordination with the client’s customers throughout the year. Added to this customer engagement, HGS took up the initiative and suggested and implemented the process of contacting customers for celebratory life events like their/ immediate family members’ birthdays or anniversaries. The idea was to strengthen and enrich the engagement between the client’s brand and their customers, while personalizing the experience. As a result, we now contact customers on special occasions and offer assistance on bookings for the occasion. As expected, this had a positive impact on the client-customer relationship and enhanced customer satisfaction. Customers express appreciation for the calls and show more interest in loyalty membership renewals. The positive customer sentiment and satisfaction led to a significant increase in membership renewals.
We also call customers who have not used their membership at three-, six-, and nine-month intervals; check for the reason of non-usage; and offer booking assistance, if required. We also give these customers special offers. The process of lifecycle management and club coordination has enhanced customer experience transformation and contributed to CSAT and increased loyalty membership renewals.
As a result of our efforts through lifecycle management and special occasion calls, HGS provided a >38% increase in conversion rate for loyalty membership renewals. Against an industry standard of low renewals in the first year, HGS provided a 67% increase in renewals. Additionally, more than 20% of renewals are made with an upgrade in membership and only <2% renewals happened with downgrade in customer membership.
2. HGS introduced a predictive data analytics strategy to drive data-driven, result-oriented decisions.
How We Do It
HGS processes for this client are so data-centric that we have a dedicated data-reading team to identify gaps in closures and remedy them. In fact, now data is the backbone of all decisions made for this client
For existing client customers with rich historical data, HGS began customer segmentation into various categories in an entirely data-driven process. Today we apply predictive analytics and score leads based on the results of the predictive analytics. Our data scoring is based on the demographic data derived from a statistical model studying the variables (using the history of sale made and not made). The statistical model formula provides the detail on which customer is most likely to answer our call and at what time we should call them. We also use predictive analytics to classify customers into different segments based on their behavioural histories. For instance, the segments with customers who are most likely to buy are contacted with a plan targeting renewals. Renewal is predicted using customers’ demographic data (age, salary, spend patterns) and scored data. We also focus specifically on customers who have refused to renew their membership termed as “Refusal or VOC Analytics.”
New customer acquisitions are also driven by predictive analytics. HGS uses historical data about customers who have been contacted a few times, but haven’t yet made a membership purchase. We study interactions data patterns in customer behaviour. Calls are then made to those customers who have shown interest and are most likely to purchase a loyalty membership with the client. We also perform customer profiling using predictive analytics for customer renewals and new acquisitions.
Data analysis and data-driven decisions in new customer acquisitions and renewals resulted in an approximate 400% increase in revenue contribution from new sales and 50% increase in revenue contribution from renewals. We reduced the cost of revenue for the client by >13% and also increased the total yearly sales by >2X.
3. Offline advertising, expansion to digital channels and prospect database sourcing are designed to increase new customer acquisitions.
How We Do It
HGS suggested offline advertising to the client, and this was implemented by them. A part of offline advertising was a “missed call” campaign by which a number was set up for customers to register their number by calling and disconnecting as soon as it started ringing. These customers are then contacted by HGS on a real-time basis to enroll them in the client’s loyalty membership programme.
The client was not involved much in marketing and advertising before partnering with HGS. In order to meet the client’s new customer acquisitions expectations, we turned to digital channels like Facebook and Zomato to target, engage, and win new customers. We launch Facebook ad campaigns and event campaigns on the client’s website for new customer acquisitions. Once prospects click on the Facebook ad and provide their details, we call them.
In order to acquire more new customers, we source the list of customers who frequently visit the restaurants in the client’s India hotels. These customer details are captured and shared with HGS. We conduct a Recency Frequency Monetary (RFM) analysis on this data and study aspects like when the customer visited the client’s hotel, the amount of money they spent, and the frequency of their visits. The results help create more personalised interactions with customers when contacted.
As a result of focused efforts to gain new customers through digital advertising, HGS increased the rate of new customer acquisitions by 96%.
4. Designed a CRM and stabilised the delivery process
How We Do It
Before HGS was engaged, the client wasn’t using a CRM. Historical customer interaction data was present on the dialer, but was not captured in an organized manner and was stored in silos. There was no one-stop-shop for all the data. The CRM built by HGS eliminated this problem and is used it to record data better. Before the CRM was implemented, we were doing traditional cold calling to client customers. Once the CRM was integrated into the contact center, we used analytics to study the data and take informed decisions based on customer preferences. We called them based on the best time, when the impact was highest to call a high-profile customer base such as this client’s. This reduces effort involved and improves results.
We ensure close alignment with client culture and service standards. For example, we take care to not call customers who have opted out of promotional calls based on our CRM and dialer data. The client was very particular about not calling these customers to avoid escalations.
CRM usage made better organisation and utilization of customer data possible. With a CRM in place, HGS takes data-driven decisions that are more effective leading to a 40% improvement in membership renewal rates.
5. Ensured quality through organised planning and execution
How We Do It
To provide quality customer service for this client, we conduct audits, provide feedback to agents on their performance, run calibrations (on what went well and what could have been better), review call tapes with agents, ensure agent behavioural governance on calls (where red alerts are sent to supervisors on behaviour that might impact customers negatively), and provide quality sessions and Training Need Intervention (TNI). The quality team initiates corrective actions for repeat defaulters on behavioural governance. With TNI, if we find something wrong or lacking after listening to calls, it is included in the agent training.
We also conduct real-time sale audits for 100% of calls, which helps protect and preserve the client’s brand. In another practicethat contributes to quality, when an agent gives a customer wrong information, we follow up and make correction calls to rectify the error. We also implement HGS best practices for the client’s process with good success rates.
Our process and procedural emphasis on quality ensures we achieve 100% in six out of eight key customer critical accuracy parameters, with a 44% increase in quality scores.
6. Structured training to develop agent skill and expertise
How We Do It
HGS provides training to newly hired agents and also continuous, ongoing training when required for current employees. New hires and existing employees had different modules for each. The quality team helps in designing training modules based on learning gleaned from quality assessments. We also conduct mock calls as a part of the training programme.
We assess agents’ skills and allocate them to contact different customer bases based on their talents. For example, agents who are good at handling refusals engage with that customer base. Those agents who are good at cold calling are put in touch with new customers who are not yet contacted. Skill-based mapping and resource allocation are contributing to significant return on investment for the client.
HGS training processes incorporate valuable inputs from the quality team, to drive significant results in several areas. We saw a 70% improvement in quality parameters post TNI intervention, 40% improvement in sales performance, 8% improvement in agent quality scores post TNI intervention, decrease in Not Interested (NI) dispositions by 55%, 8% improvement in quality scores, and a dip in attrition of new hires from 7% to 4%.
Over time, our increasingly consultative approach has resulted in a strong business partnership. In fact, the client has increasingly implemented HGS’s own ideas and innovation.
During our partnership, the client also redesigned their loyalty membership product with new offerings. The client was selling an old product that we helped redesign with the current scenario in mind. HGS inputs were a major contributor in the design of the new product. The most notable point here is that even after product redesign, HGS persevered and sustained revenue delivered to the client.
A global leader in business process management (BPM) and optimizing the customer experience lifecycle, HGS is helping make its clients more competitive every day. HGS combines technology-powered services in automation, analytics and digital with domain expertise focusing on back office processing, contact centers and HRO solutions to deliver transformational impact to clients. Part of the multi-billion dollar conglomerate Hinduja Group, HGS takes a true “globally local” approach, with over 46,000 employees across 69 delivery centers in seven countries making a difference to some of the world’s leading brands across nine key verticals. For the year ended 31st March 2017, HGS had revenues of Rs. 3,711 crore (US$ 555 million).