With a wide spectrum of financial service providers in the market, it is vital for banks to deliver the right solutions in a consistent, professional manner at every touchpoint to stay competitive. Due to growing competition in the banking sector, maximizing the value of a bank’s customer base can prove to be a competitive advantage. Gathering and mining customer data is critical to the client’s CRM strategy to gain insights, evaluate opportunities, and better understand customers. Customer data analytics engagement improves marketing responses, decreases customer churn, and increases customer satisfaction.
Quantzig’s customer analytics engagement offers consistent customer engagement and communication across distinct business units such as deposit accounts and loans, mutual funds, asset management, insurance services, mortgages, and card services. The solutions offer organizations the most effective ways to reinvent themselves, drive revenue, and mitigate risks. Our analytics solutions ensure consistency in the messages communicated to customers, offer precise retention strategies, and appropriate proactive offers for best results.
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The Business Challenge and Quantzig’s Approach
To capture the full potential of the customer base, the client, a leading bank in Europe approached Quantzig to perform a customer analytics engagement to deliver the right solutions to their customers in a consistent, professional manner at every touchpoint. Due to growing competition in the market, a strong regulatory environment, and the challenge of meeting demands from customers spanning the length and breadth of their operations – 1000+ branch offices, 5000+ ATMs, 90,000+ POS terminals, the bank needed in-depth insights from its customer data. By using information from customer interactions, the bank aimed to streamline processes based on customer knowledge and the use of advanced analytics.
The primary objective of this customer analytics engagement was to maximize the value of the bank’s customer base by analyzing customer data and through the strategic use of information. Quantzig’s customer analytics engagement team developed an analytics solution to ensure consistency in the messages communicated to their customers, precise retention strategies, and appropriate proactive offers for best results. The team identified relevant data fields such as call center data, campaign data, customer profile, transaction profile, and marketing response data and integrated it with disparate data sources.
Business Benefits and Insights
With an objective of helping the client maximize the value of their customer base, Quantzig’s customer analytics engagement team captured the full potential of their customer base using customer information to assist them in delivering the right solutions to their customers in a consistent, professional manner at every touchpoint. The solutions equipped individual bank tellers and staff with customer information that enabled them to provide a tailored and consistent customer experience, irrespective of points of contact. The customer analytics team measured the profitability of each customer based on parameters such as potential, lifetime value, churn risk, loyalty, and channel preferences.
During this customer analytics engagement, the team segmented the customers into eight major segments to tailor sales and service-specific propositions. Further, the team also defined multiple sub-segments to refine strategies and tactics. The team also developed a churn probability simulator to estimate the likelihood of a customer terminating his relationship with the bank based on transaction history, product portfolio, and length of the relationship. The engagement increased the amount of time branch employees spent on sales and service activities from an average of 40% to 70% of their time. Moreover, the team analyzed the social chatter to understand brand perception and product feedback and identified the next best action at the individual customer level. The customer analytics strategies improved marketing response rates by almost 17%.