How ICICI Bank used Marketing Services to drive $9.75 million in incremental spend

Problem

Debit activation rates were dropping

ICICI Bank, India's second-largest private sector bank, faced a significant challenge. Despite strong marketing efforts, debit card activation rates dropped from 6% in FY '21-'22 to 4% in FY '22-'23. This decline mirrored a broader trend in India, where activation rates fell from 21% in Q3 2022 to 19% in Q3 2023. The crowded card market, with the rising popularity of UPI and credit spending, was impacting debit cards. Additionally, there was a decline in transactions per active card.

The strategy used a data-driven approach, consolidating insights from persona mapping, spend patterns, and merchant-level analysis to understand the target audience across card tiers—Standard, Platinum, and World. Customized campaign constructs were developed, featuring tiered spend thresholds, differentiated reward rates, and tailored communication channels for each card segment.

The campaign was divided into cycles, with 0MOB consisting of four cycles of one month each and 1MOB consisting of two cycles of one month each. A multi-channel approach, including email marketing, push notifications, and SMS, was used to reach users with personalized messaging. Automated workflows sent reminders to customers who had not activated their cards, and real-time analytics monitored the campaign's effectiveness.

Results

Targeted customer engagement boosts debit activation rates

The campaign yielded impressive results:

Through this strategic partnership with Mastercard, ICICI Bank successfully tackled declining debit card activation rates. By leveraging data insights, personalized messaging, and a multi-channel approach, the campaign not only increased activation rates but also drove significant incremental spending. This engagement highlights the power of targeted customer engagement and a well-executed marketing strategy.