COE ae eC MCT} adventity” Leading Asian bank achieves a 206% return on marketing investment by carrying out an effective below-the -line campaign ‘A leading Asian bank carried out an above-the-iine (ATL) campaign directed towards a specific set of customers, They requested VISA Consulting and Adventity to leverage the above campaign and use a separate below-the-line (BTL) campaign to Increase intemational spend carried out by all customers. An effective campaign management process was developed to increase dollar return on marketing spends. CASE STUDY: A LARGE ASIAN CREDIT CARD ISSUER Challenge: To increase the international spend and interest income Solution: Below-The-Line campaign was designed and executed for the right set of customers. Results: Intemational spend saw anincrease of 48% andinterest income increased by 35%; Overall ROM| was 206% Challenge: (Our client, a leading Asian credit card issuer had executed a tremendous ATL campaign targeted at their niche customer ‘segment. They wished to further leverage this campaign by another BTL campaign whereby specific offers would be targeted towards spedticsetof customer segments. This challenge translated into the folowing key objectives: > Primary -To increase customers international spend > Secondary- Toincrease interestincome This required that certain hypotheses be tested: > Tolesteliforent hypotheses foridentiying potential Intemational spending customers 4 Past International Spend (PIS) as good indicator of potential International spending customers 4 Exploratory Profiling Analysis (EPA) is @ belter approach than PIS for identifying customers likely to spend Intematonaly > Totestthe responsiveness of targeted customers for three diferent types of incentives + Preferential rates + Differential treatment through customer education 4 Preferentialtreatment Solutions: ‘The bank, wished torun a separate BTL campaign using direct mailers with three types of offers — ‘a. Preferential rate b. Preferential reatment ©. Differential treatment Approach: Portolio analysis to understand the currentscenario Identification of business segments of interest for rolling out he international spend campaign ‘Twohypotheses were used toselect customers for offer, 12 different offers was designed ‘Total 24 test cells were created and campaign was launchedMethods for selection of customers eas) Etre ee Peer) Transaction a ueUsed [ey Results & Learning Inlornatonal spend Customers who had have atleast one International ansaction real orcash) inthe last 12 months (uly 2008 to June, 2007) Only applicable for customers with past Customer profling based on past behaviour 1 predict potential international spending ‘eustomers and sagregate them accordingly In order to be able to focus on they key objectives, four key business questions were asked and subsequently answered: Question 1: Does a BTL campaign give better returns than an ATL? ‘Answer 4: BTL campaign gives better return for dollar spend, than anATL campaign ‘Aaage trata Spend dng eanpaign = ae : sete Key learning BTL campaign gives better retums for dollar spend as ‘comparedtoanATL campaign BTL campaign has managed to increase the intemational ‘spend by 215% as compared to the ATL campaigr Question 3: Have offers managed to increase intemational spend? Answer 3: The olfers produced 48% incremental intemational spend Average ternational Spend rng camesion =~ Key learning Offers have managed to increase the international spend of targeted customers by 48%, fecal UES Colao ER oR Uk Adventity, Ine. Adventity India ‘448 Park Avenue Sout, ‘Adventity House ‘Suite 1202 ©-2, Wagle industial Estate, New York NY 10016 Thane - 400 604, INDIA Tel+1 212.679 8510 “el +81 22.67 969 000 Question 2: Which isa better method for selecting customers {orlntemational spend campaign; EPAor PIS? Answer2: EPAis a better method for selecting customers to induce higher overseas spends than PIS Ao 2 EPAisa etter methodthan PIS ‘Average international spend of EPA customers was 7% higher than PIS customers Question 4: Has the BTL campaign managed to increase interestincome? ‘Answer: Incremental interestrevenue 35% ‘ine. 38% es Key earning Yes, the BTL campaign has managed to increase interest, ‘Average interest revenue of Test Group was SG$ 3.12 more than Campaign Control Group Le. 36% higher Meee ‘Adventity Hong Kong _Adventty Singapore ‘ate 12F RogentCenre Sez Havelock Rona Baeens tad Cowal Grand Gono Warton Holl Hong Keng Site 0820, Sigapore 168000 Tol +852 2526 0196, ‘el: +65 6756 1802