Through the Door Acquisition
Year on year growth
Customer acquisition in uncertain times
Growing volumes through intelligent prospecting campaigns
Woolworths Financial Services (WFS) is the financial services division of Woolworths, a major
South African food and textile retailer, operating over 130 stores country-wide.
Since 1993, WFS has been providing credit through its flagship ‘In-store’ private label card that
allows consumers to purchase Woolworths goods and services on credit. Today, WFS provide
credit to over 1.5 million consumers through financial services products covering personal loans,
unit trusts, visa credit cards and in-store cards.
Woolworths enjoys a strong brand recognition for quality
goods and services, despite this fact, certain challenges
were faced with the ‘Through The Door’ (TTD) applicant
population for the In-store Card.
• Declining year-on-year growth
• Risk of those applying was increasing, resulting
in lower accept rates and resulting in an overall
increased cost of acquisition.
Right: The graph indicates a trend towards decreasing
year-on-year volume growth rates
To accelerate In-store Card portfolio acquisition and stimulate growth, WFS took the strategic
decision to focus a greater amount of its energy on ‘below the line’ direct marketing campaigns.
These campaigns were focused on new consumer prospects to the WFS business.
New Customer Acquisition Growth Model
WFS recognized the need to improve customer acquisition rates and value contribution; and so
embarked on a two-point strategy to increase customer acquisition and share of wallet:
• Leverage three key assets of WFS. WFS enjoy a wealth of experience in card
management, risk management and credit direct marketing. WFS combined these key
skill sets to maximise customer value and acquisition opportunities.
• Grow the value contribution within the portfolios through direct marketing
initiatives. WFS have previously