Client Activity:

Retail

Headline:

Customer recruitment costs reduced by £1.1 million

Background

The average cost of recruiting new customers using internal sales teams was almost 9% over budget.
With no corresponding increase in customer spend and a deteriorating bad debt profile, recruitment quality was also a problem for the business. Something had to be done.

Action

- New more targeted ways of working were introduced aimed at economically increasing sales activity levels
- Focus on recruitment in areas where demographics matched current / desired customer profile versus current offer penetration
- Risk analysis of potential credit uptake versus projected debt levels by postcode sectors to aid activity planning
- Detailed profiling of desired customer types and associated product demand by line to aid customer selection

Result

Through the implementation of these and other measures, activities reduced costs by over £210k within the first 3 months and a net financial benefit of £1.1m projected for the end of the first financial year.