Case Study: New Product Design
When considering the introduction of fees on an existing product our client needed to determine the impact on customer profitability. Would conversion rates drop significantly and undermine the revenue increase associated with a fee? Our solution maximized conversion rates and profitability by matching customers to different versions of the same product offering.
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Mindswift helped identify segments of the customer base that responded well to the fee offering: |
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MindSwift enabled implementation of a dual-offer model, which matched customer priorities to offerings (fee / no-fee), maximizing overall customer conversion and increasing profitability over time.
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Situation: When a Top 10 credit card contemplated introducing a fee on one of its existing products, the institution needed to build a business case based on its impact on conversion rates and future profitability.
As with most inbound sales-to-service delivery of sales pitches vary widely across the floor. While there was an abundance of mythology about which approaches worked best, our client needed an empirical business case to make a confident decision regarding fees. Our methodology provided the means to use structured multi-variant testing to quickly determine the impact of a fee introduction as well as which dialogues were most effective at appealing to customer needs.
Solution: Mindswift provided our client with the ability to try fee variations on a baseline product dialogue in a “test kitchen” environment. We created structured experiments where hundreds of dialogue variations were tested against real customers via inbound and outbound calls.
The team conducted a three month test using hundreds of scripts, and results were subsequently matched to post-sale account profitability to identify the best dialogues.
Impact: The no-fee product conversion rates were substantially higher, but more importantly, Mindswift was able to also identify segments of the customer base that responded well to the fee offering — and recorded the specific dialogues that elicited favorable reactions.
Ultimately, the client was able to implement a dual-offer model whereby customer priorities were matched to the appropriate offer (fee / no-fee), maximizing the overall rate of customer conversion while also increasing profitability over time.
