- June 18, 2015
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How Western Union Stays Relevant While Building Loyalty
Western Union is a 164-year old financial and communications company that originally built its name in the telegraph business. But Western Union stopped sending telegrams in 2006.
So how has Western Union kept up with consumer tastes, which have been changing ever more rapidly in recent years? In a word that’s familiar to every integrated marketer: relevance.
As reported by Direct Marketing News, Western Union’s CMO, Diane Scott, says the company has stayed relevant by taking two main approaches to business: hold on to customer needs that never change (e.g. speed and convenience); and quickly respond to new standards and demands.
All easier said than done, of course!
Nevertheless, Western Union has managed to evolve with the financial needs of today’s global citizens. Customers sent and received over $82 billion using Western Union signature services in 2013, including person-to-person money transfers, money orders, and other services.
Understanding What Drives Customers
Mike Hafer, SVP of global CRM, loyalty, and social media at WU, elaborates on the company’s philosophy: “I think the first way to connect and create loyalty is to speak to a customer in his or her language. And I don’t mean dialect or words. I mean the things that matter to them,” he said. “First, you need to understand who the customer is; know what their needs and wants are. Learn what really drives and motivates them personally and with a brand.”
The WU marketing team discovered that one of the more powerful drivers among Western Union customers is being able to help friends and families. By understanding individual customer stories better, marketers at Western Union are able to establish trust, increase brand affinity, and generate ultra-faithful fans.
Leveraging Connections To Build Loyalty
Western Union created a customer loyalty program in 2003 called My WU to build brand affinity, loyalty, and sales by leveraging family connections.
Customers in the My WU program earn discounts on transfer fees. The recipients of funds can also receive discounts if they are enrolled. To join, customers only need a mobile phone number or email — valuable information collected for later use by marketers at Western Union.
My WU builds revenue two ways: through transaction fees and foreign exchange fees by encouraging consumer-to-consumer sales. The My WU loyalty program now has millions of members worldwide.
The company keeps in regular touch with members to make sure they understand and take advantage of their discounts and benefits. According to Western Union, My WU members generate more revenue than non-members, but only if they’re actively participating.
Said Hafer, “For people to join and then not use the program isn’t good for anyone — for them or marketers at Western Union. So, we do everything we can, mainly direct marketing through email and text messaging, to remind them of point balances and program benefits.”
For more ideas on how to build customer loyalty, check out some of our previous posts: Let Customers Play Games and Win Their Loyalty; Woo More Customers with Relevant Targeted Data; and How a Chainsaw Brand Swayed Consumers to Buy Local.
