Segmentation of customers for better acquisition and cross-sell through Analytics
Published Date:Feb 02, 2010
US-based financial services major.
Analytics Services, Data Mining and Micro targeting
Segmentation of customers for better acquisition and cross-sell through analytics
Client is a Fortune 500 financial services company offering banking, investing and insurance to people and families that serve, or had served in the United States military.
Our customer was keen on cross-selling of their college savings product with non-active customers. This product penetration was very weak (<0.05%) and our customer was keen to expand their active customer base for this product. Our customer wanted to target potential academy students with career refinance loan and cross sell other products with respondents.
- Segmentation of active customers using cluster analysis and 650+ data elements
- Segment profiling to identify main differentiators and key characteristics of the identified segments
- Segment affiliation in the inactive customer base identified through application of business rules learnt from segment profiling
- Rank ordered list of potential cross-sell customers within identified segments provided to customer’s campaign execution list
- Design of specific offers with relevant messages for individual segments based on profiling insights
- Products for co-promotion identified
- Shortlisted target students for e-mail campaign
- Built dashboard to track business results across 18 business accounts
Benefits in business operations
- 7% new acquisitions (vs. <0.05% prior to campaign launch)
- Over 37K new relationships in co-promoted products
- Win back and increase product penetration
- 20-40% better acquisition rates than control groups