The financial services marketplace was selling multiple products – credit cards, vehicle loan, personal loan, insurance from multiple financial services providers. They wanted a customer centric focus rather than a product centric view. This meant developing a solution that would allow them to offer products to each customer based on financial value, propensity to accept an offer and business priority, rather than single products being marketed through an expensive outbound campaign.
Optimized offers to customers, through the right channels
Using Next Best Action approach, the client was able to integrate multi-channel interaction with the customers to make offers valuable to both – the customers & to them.
Net uplift of ~18% on outbound campaigns (for the pilot)
Cost reduction of ~40% on outbound campaign cost
Consistent and consolidated communication across multiple channels
Making the customer as the central focal point optimized the campaign and offer strategies, generating better experience for the customers and a higher lifetime value
Customer focus instead of product focus
The client was using propensity modeling based cross sell approach for outbound campaigns. They were able to generate the usual benefits of cross sell i.e. higher uplift and lower spends. They were also able to identify factors that were driving subscription to a specific product. Cross selling was driving undesirable behaviour from a significant number of customers.
The client was looking for something more – a solution that would allow them to market the right product to each customer and integrate the multi-channel communication that the customers were having with them. We proposed a real-time decision engine to find the right product and integrated communication across channels – to make the right offer. With this approach, offers are now only made to customers when it adds value.
Manage multi-channel customer interactions
Next Best Action (NBA) is focused towards relevance and timeliness of push campaigns.
If done effectively, NBA implementation has the potential to boost multiple KPIs, including:
a. A better informed and updated communication stream
b. Making more relevant offers based on customer needs
c. Improved response rates and better campaign RoI
d. Marketing all products, and having a best offer for each customer
NBA drives smart, cost effective and value based reach out through the right communication channels.