Challenge
This subscription marketer rely on tactics such as low introductory rates and “bill me later” offers to build response — adding cost and risk. Alliant’s client was interested in repackaging its conversion offers to minimize attrition and bad debt.
Solution
Alliant developed a custom payment score that segments consumers into three tiers for offer selection. The scores are delivered in real time for conversion efforts online and in the call-center: top prospects with the highest probability of paying and staying receive the original “bill me later” option; middle tier consumers are offered a premium for up-front payment; bottom score groups are required to pay by credit card with the incentive of free shipping and handling. Real-time scoring allows the client to boost campaign performance by instantly generating the right offer for each lead.
Results
Increased retention rates, with significant reductions in intro-cancellation and bad debt.
Improved introductory payment rates across all enrollees.
Free shipping incentive proved to be so popular that it was adopted as a standard practice for retention shipments across middle and bottom tier groups.
