financial services - loyalty and retention
Smart financial companies are identifying new ways to keep their
most profitable customers loyal, to enervate marginally unprofitable
customers and to minimise unnecessary expenditure
on costly, directionless customers. It makes plain economic sense:
protecting a profitable account means (at least) one less new business
to acquire, helping to underpin consistent company profitability and
To drive up loyalty and customer lifetime value, you need insight into each customer’s
present and future needs. Once understood, personalised communication
a technique proven to increase customer satisfaction. Customers
don't like to be overtly managed, especially where this takes place in
its crudest, most unpersonalised form.
Stealth Customer Management (SCM) is
the new evolution to traditional CRM that utilises predictive analytics
to deliver an utterly personalised product and service proposition
at the optimum time. The customer feels your business is really on the
and a lot less frustrated by irrelevant marketing messages.
objective of SCM is for your business to meet its Customer Lifetime
Value objectives by subtly managing accounts to an increased revenue
position, whilst increasing loyalty and satisfaction throughout the customer
how can Oceansblue
you achieve this ?
Score new customers to deliver a Customer Lifetime Value (CLV) estimate
Predict which new joiners will grow to profitability, filtering out "rate tarts"
Empower CMR and CRM applications with personalised customer needs and value
Uncover and convert more cross-sell opportunities - extend your financial portfolio
into the customer's space
Predict each account's propensity to churn, in time to successfully defend
Oceansblue has found that the most successful financial companies communicate
with their customers with both an understanding of their historical purchasing
behaviour and a future insight based on predictive analytics.
intelligence revealed by Oceansblue’s Information Inventor software
enables effective communication, delivering hard predictive data such
as Customer Lifetime Value, cross-selling product and services propensity,
proposition timing and future customer needs - these can all drive existing
business applications to increased efficiency.
clear winners adopting these
tactics have already appeared in the credit card, retail banking
and stock broking sectors. Efficacy can be proven in a production environment,
by targeting the insight delivered from Information Inventor toward
a control group of customers, then
measuring business performance across this group, versus the business at large.
Business Case Snapshot
Company Profile "before Information Inventor"
sector: financial services
monthly churn rate: 8% of accounts
monthly lost value: £5,000,000
Information Inventor for Churn Prediction
project duration: 1 month
overall classification accuracy: 99.8%
True Positives to False Positives ratio (expressed as percentage): 82%
Information Inventor monthly churn value captured £4,000,000
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