CASE STUDY

Customer Engagement Analytics Helps Banking Client Increase Annual ROI by 60% 

Nov 30, 2022

Customer Engagement Analytics for the Banking Industry 

Let’s first understand the importance of customer engagement analytics for the banking industry. The fulfilment of any financial objective calls for exhaustive planning for it to achieve, every objection calls for a string of well-informed decisions whether we’re talking about saving, investing, steady income after retirement, or building wealth. Being an extremely dynamic undertaking, it calls on customers to go through the appropriate stages no matter where they are in their financial lives – beginning, dependents, development, and retirement. 

Considered these four stages, we can easily deduce that there is a plethora of data generated by the banks where these individuals decide to accumulate or manage their finances. Product developers employed in the banking industry employ data such as, previous purchasing pattern, customer feedback, performance commercially, and finally, acceptance of new portfolio. There developers create datasets from this information to provide bespoke offerings to the customers based on their stage of life.  

However, evaluating this data is a complex task due to the sheer amount of data. This is where customer engagement analytics comes in, through the power of AI and ML, the developers can evaluate the perfect combination for the customers in highly reduced timeframes. Due to this, we can safely assume that such applications improving speed, agility, and access to reliable information are going to change the way the baking sector operates. 

By leveraging Quantzig’s customer engagement solutions, companies can effectively track and monitor customer journeys and reduce churn. Request a FREE proposal to gain in-depth insights into our advanced analytics solutions. 

Companies operating in the banking sector are still working under the traditional business models with the sole aim of implementing secure systems. Although security is a primary focus of the industry, these models are unable to track and analyze customer journeys. Due to the increasing competition, it has become for players in the industry to deliver consistent services at every touchpoint to stay competitive, let alone surpass their competition. 

In order to gather customer data, it is imperative for players in the industry to maximize the value of their customer base and to gain insights, grab opportunities, and better understand customers. Not only this, but customer engagement analytics also increase customer satisfaction, reduces customer churn, and improves marketing responses. Considering the volatility of the banking industry, where banks must compete among themselves along with other financial institutions, it’s imperative for players to embrace customer engagement analytics. 

It’s no secret that banking and other financial institutions must spend a huge chunk of their budget to retain customers as banking offerings are easy to replicate, and hence often lose their customers to competitors. Did you know that global number of bank accounts are set to reach $13,080 billion by 2026, this is an increase of 2.1% year on year as compared to $11,480 billion in 2021. And data analytics have proven that keeping an existing customer on portfolio is much cheaper than initiatives to acquire a new one. Hence, proving the importance of customer retention or banks. 

Want to learn more about our customer analytics engagement and business intelligence solutions? Speak with our analytics experts today! 

Customer Engagement Analytics Challenges Faced by the Client 

Our client, a leading banking and financial institution based in the US, with operations across the globe wanted to leverage Quantzig’s AI-driven application to offer its customers exemplary services irrespective of their position on their journey. With the aim of focusing more on financial planning across customer journey, the bank aimed at helping its customers ensure retirement income, business transition, and managing market volatility. 

The client wanted to not only understand the potential success of financial but determine what they can innovate by creating a portfolio based on the age and risk tolerance of customers. The client’s in-house product developers also struggled in accumulating and leveraging detailed information on managing the portfolio of the customers.  

Once the client explained their challenges, our research team started working with the officials to determine extra pain points for the client. Here’s what we delivered: 

The client was also struggling with identifying profitable customer segments and improving customer relationships. The bank needed to deliver the right solutions to its customers in a consistent manner across all touchpoints. Our experts decided to implement customer engagement analytics services to analyze customer data through strategic use of information, hereby resulting in maximizing the value of bank’s customer base. 

The client also needed to accumulate all their data in a single data warehouse so that all relevant teams could have access to the data as and when they wanted. We also highlighted the need to develop an analytics solution to ensure consistency across all messages communicated by the client to its customers, developing retention strategies, and introducing proactive offers for superior results.  

Being an industry veteran, the client had an in-house data team to gather and collate the data, which the client was able to complete to a certain extent, however, the client was unable to derive insights from the valuable data that would have helped them provide tailor-made offerings to its customers. The inability to access the full power of the data meant the client faced a rapid increase in customer churn, significant loss in revenue, and increased customer acquisition costs.  

The client attended one of our webinars on customer retention, post which they decided to connect with our experts to understand what they can achieve with a robust customer engagement analytics model. 

The client was struggling with the following issues.   

  • Inconsistent customer experience  
  • Customer churn  
  • Employee disengagement  
  • Low customer trust  
  • Siloed views of the customer experience  
  • Difficulty in quantifying customer loyalty  
  • Venturing new markets 

With our experience spanning decades, the client decided to approach Quantzig and leverage our field expertise to implement customer churn analysis as well to implement a AI- and ML-led analytics framework, reduce churn, reach customers where they are, develop new marketing programs, improve customer experience, and more. 

Revolutionary Solutions for the Banking Client 

Once the challenges were identified, now the task of our data teams was underway. Our data teams decide to utilize cutting-edge big data analytics and pricing solutions to help the client identify strategies to mange the assets of their customers and effectively reduce their debts. There are three categories of financial life stages in the banking industry – wealth accumulation, distribution, and preservation. Our experts decided the best way to help the client realize their maximum potential was to assist it in all three verticals through superior analytical solutions.  

Our teams decided to collect different data points on customers and 360-degree view of the customers to improve cross- and upselling. To improve customer loyalty through consumer awareness of the product, our experts delivered strategies to create high emphasis on product marketing. In a bid to identify current market trends, our experts implemented AI-led tools to sort through the enormous amount of data generated through surveys, groups, and questionnaires.  

Are you finding it difficult to keep up with the safety measures and regulations of the banking and financial industry? Our customer service analytics solutions can help your organization keep up with BFSI regulations. 

Through our superior customer engagement analytics, the client was able to identify high-value customers, and ultimately develop loyalty programs to drive bottom-line results. Through the use of customer information, our team was able to deliver the right solutions to their customers consistently across all touchpoints. The analytics team used parameters such as, customer potential, lifetime value, customer loyalty, churn risk, and channel preferences to measure the profitability of each customer.  

Throughout the customer engagement analytics process, our experts segmented the customer into eight sub-sections to refine strategies and tactics and ultimately offer bespoke service. By developing a churn probability simulator, the team was able to estimate the chances of a customers leaving the bank based on their transactions, portfolios, and length of relationship. Finally, the team analyzed social media channels to understand brand perception among the customers and solved the woes of the customers proactively. These strategies improved the marketing response rates by almost 17%. 

Our experts developed a superior customer engagement analytics model to help the bank understand its customer better. Through this model, the client was able to effectively identify fraudulent activities and highlight customers capable of posing such threats. The framework developed was able to help the client identify the threats through a single-pane-of-glass view dashboard to understand patterns that cause concern even before the actual threat occurs. 

Our customer service analytics solutions combined with customer profiling and segmentation can help your organization understand your customers’ preferences. Request a FREE proposal to gain in-depth insights. 

Key-Takeaways 

churn analytics in banking

Quantzig’s customer engagement analytics helped the client unlock the following benefits:    

  • Increased system security and offered the right service to the customer  
  • Competitive benchmarking analysis for products through cross-category benchmarking and balanced scorecards   
  • Enhanced customer experience levels by identifying all customer touchpoints  
  • Improved accuracy in churn forecasts by 2X  
  • Enhanced customer retention rate by 70%  
  • Improved overall annual ROI by 60%  
  • Reduced the gap between the bank’s products and customer’s needs  
  • Reduced financial frauds which further helped in saving US$2.5 million 

Recent Case Studies

Industries

Our advanced analytics expertise spans across industries, sectors, and functions, which enables us to deliver robust, agile solutions to all our clients. These are our core competencies, formed through years of experience.

Insights

Our free resources shed light on our extensive expertise and equip you with information to accelerate decision-making, growth, and innovation.

Talk to us
Talk to us