The Customer Engagement Score (CES) is a unified measurement of customer engagement with your bank. As a direct indication of the quality of a customer’s relationship, the score represents a powerful grouping mechanism and an entirely new way to think about loyalty and retention. Zafin’s CES methodology delivers two key data-driven outcomes, grouping customers:
By engagement breadth and depth
By behavioural pattern
Depth and breadth: CES engagement attributes
As the engine behind Zafin’s loyalty analytics solution, the CES analyzes transaction activity, relationship depth and product usage, reward utilization using a combination of five behaviour-oriented engagement attributes.
Based on this behavioural analysis, the solution assigns a numbered score to each of your customers, ranging from ‘Best in class’ customers to disengaged customers at risk of attrition – the higher the score, the higher the quality of customer engagement.
For example, customers with a higher score may be eligible for discounted pricing, preferred rates, access to exclusive rewards or some other form of additional benefits, while customers with a lower score may be targeted with specific incentives to retain the relationship.
Segmentation by engagement and behavioural profile
In addition to the depth and breadth of your customers’ engagement, we can also categorize your customers into one of five distinct behavioural segments.
Crown Jewels. These are your most engaged customers, with strong spending, utilization, and redemption behaviour.
Travelers. These customers exhibit primarily travel-related seasonal spending, such as airlines, accommodations, and food and beverage, with a moderate engagement quality overall.
Essential Shoppers. These customers focus their spending on non-discretionary items, such as grocery, fuel and food. Although spending is generally limited, this group demonstrates active redemption behaviour and solid engagement overall.
Low-Value Transactors. With a moderate level of engagement quality, consider this group as a ‘poor cousins’ of Crown Jewels. The upside is that some of these customers may become Crown Jewels in the future.
Disengaged Occasional Spenders. With the lowest levels of engagement quality amongst the five segments, this group may require the most attention. Retention-oriented loyalty measures are required for this segment, as is addressing a potential lack of profitability.
The output of this analysis is a “re-segmented” list of customers based on the depth and breadth of their engagement and behavioural profile. With this insight, you can optimize your marketing campaigns accordingly.
Customer Engagement Score: Key benefits
- Reduce customer inactivity.
- Be proactive with early warning triggers of customer attrition.
- Drive additional cross-sell/upsell opportunities by tailoring offerings to specific customer needs and engagement behaviours.
- Enhance the customer experience with differentiated, tailored offers.
- Supercharge marketing strategies by optimizing market budgets, campaign response rates and tactics.
The Customer Engagement Score serves as the centerpiece of the bank’s intrinsic loyalty strategy, helping attract, influence and retain customers. By making the most of your data, the end goal is to build long-term, profitable relationships with the bank.
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