Banks and consumer credit: Marketing and Sales

The delineation of client behaviour profiles, the measurement of the probability of purchasing a new product/service or, contrarily, to leave the institute, comprise the ambitious aims for which we use Data Mining.

The fundamental prerequisites needed to reach these aims are:

• an appropriate technological infrastructure;
• a data environment for marketing analysis;
• a methodological knowledge for data analysis.

In summary, the main issues for analysis are:

• constructing a profile of our clients
• scoring Models for cross-selling campaigns
• scoring Models for Customer Attrition

Constructing a profile of our clients

The steps that banks take to gain client loyalty and the evaluation of the reaction to new services offered to them are based on knowledge of the features, preferences and specific needs of these clients.

The identification and quantification of distinct behavioural segments and the analysis of the dynamic of these segments with time, form the basis with which to reach fundamental marketing objectives:

• the evaluation of potentials to personalise the offer;
• cross-selling activities;
• the identification of targets that guarantee the profitability of specific commercial actions;
• the possibility of reporting the fundamental evaluation points on the commercial plan to managers;
• the planning and feedback of the commercial strategies for client loyalty.

Scoring Models for cross-selling campaigns

Nearly all of our hundreds of thousands, or millions, of clients have a bank account, but only a limited percentage possess a debit credit card on the account and an even smaller percentage have chosen a revolving product.

The construction of a scoring system for a cross-selling campaign aims to assign a score to each bank client, who is a potential purchaser of a product that he does not have. This score is in proportion to the probability that he buys the offered product/service on the basis of a comparative analysis of the potential purchaser profile, compared to the profile of the clients the bank already has.

Scoring Models for Customer Attrition

For a banking institute, forecasting the phenomenon of abandonment of its clients is an important element amongst many actions that a bank takes to develop a privileged and long-standing relationship with these clients. The operative context that must be achieved is as follows:

• allocating a probability of abandonment to each client for a definite time period,
• selecting a list of "high risk" names,
• activating the agency network, that will use the channels it deems most appropriate to contact the above-mentioned people,
• formulating service proposals that will meet needs which had not been met until that point,
• registering retrospectively the content obtained in the "Customer Attrition" rate.

 

our services on the topic of Risk Management

• Banks and Consumer credit
  • Marketing and Sales
  • Risk Management
  • Fraud Detection
• Insurance
• Automotive
• Publishing
• Telecommunications
• Mail-Order
• Other Sectors