Collective marketing: the key to Direct Debit cost savings
During 2010, Bacs joined forces with councils from the London Revenues Group to show how collective marketing can deliver significant cost savings to organisations offering payment by Direct Debit.
We ran a groundbreaking initiative which saw 20 authorities take part in a collective marketing campaign – supported by a major prize draw. Its aim was to maximise the councils’ Direct Debit conversion rates and thus deliver significant cost savings, based on a typical return of £10 per conversion per annum.
This collective approach delivered marked improvements in Direct Debit conversion rates. Figures showed increases that ranged from 15% to more than 600%. An efficiency saving of approximately £435,000 per annum (based on a £10 saving per conversion per annum) was achieved and the councils typically saw a full return on their investment within 2.8 months.
Read more about this groundbreaking initiative in this case study.