Maximizing Customer Value through Data- driven Marketing · Value through Data-driven Marketing...
Transcript of Maximizing Customer Value through Data- driven Marketing · Value through Data-driven Marketing...
Maximizing CustomerValue through Data-driven Marketing
Uroš Breznik, BDOBarbara Frank, Data Science Project Manager
Churn Definition in FinanceSupporting Slide
Customer Churn:
When an existing customer stops doing business or ends
the relationship with a bank on the level of a product or in
total.
Data Science Approach:
Build models using data to understand when and why
your customers stop interacting with your
business.
Cleopatra Financial for Churn Prediction
Cleopatra Financialpredicts churn andmeasurements to retainclients with up to 96 % accuracy.
Churn Hurts Sales, Hurts Bank
Total Revenue – Total Cost
ROI = -------------------------------------- x 100
Total Cost
Cleopatra FinancialChurn Model - ROI
ROI of Customer RetentionSupporting Slide
CAC (customer acquisition cost) in banking = approx.
300 € per customer
In case aunnual churn rate =
20.000 customers
6.000.000 €needed for acquisition
annually
Churn prediction model with 80 % accuracy = 16.000 potential churners
identified
Retention rate 30 % = lowered
acquisition costs by1.600.000 €
Cleopatra Financial Enables Data-driven Decision Making
Offer selection
Segmentation
Product pricing
Retention
Content creation
Customer service
Possible Upgrades for Cleopatra Financial
EWS (early
warning system)
Scoring
Fraud detection
Treasury management
Risk management
R&D
Supporting Slide
Useful Information for Different Purposes
Output from deep learning prediction
model
Output from deep learning model explanation module
Data from customer data mart
360o view of customerthese are input variables to the model
Business rules defined by marketing and/or product development department
Deep learning model
Used for defining
Supporting Slide
Cleopatra
Cleopatra Financial
Cleopatra Product Family
Cleopatra Enterprise
Cleopatra Industrial