Customer Segmentation

Segmentation of credit card customers based on their demographics, transaction patterns, payment behavior etc. to understand the portfolio, design marketing strategies, customize product / service offerings for the customer, run focused campaigns and locate opportunity areas. Some of the benefits could be activation of unused plastic, increased spend per card, identifying profitable segments for retention et al.

Campaign Management – Response Modeling

Various campaigns such as increase spend, activation, loyalty programs etc. can be managed even more efficiently and at a lower cost by use of response modeling. Campaign management offers target marketing approach for enhanced response rate. At the same time, it gives full control over the campaign right from the conceptualization stage by comparing ROI across combinations of target customer segments, applicable policy, appropriate channel, and suitable offer.

Cross-sell

Sell other assets and liability products to the card customer at the right time and right price. Adventity’s host of cross-sell models are based on customers’ demographic, behavioral details and industry trends. Success of these models relies on identifying the customer needs which could be as typical as requirement of personal loan or accident insurance cover. We do it by studying customers’ purchase pattern on cards clubbed with payment behavior, demographic, psychographic details. Cross-sell models segments customers based on their propensity to buy a particular product along with appropriate time when the sales efforts should be put in.

Customer Life-Time Value

For each card customer, Life Time Value (CLTV) answers two fundamental questions for any company -

• Life time value (in value terms) of a customer
• Life time (In terms of period) of a customer

Depending on the value of the customer and phase of life a grid is prepared which is used to assess the unlocked potential of every customer

Behavior Modeling

Studying customer base to manage and retain customers. Various benefits of behavior modeling include Objective & proactive limit renewal, Early warnings of default, Revise collection policy based on customers’ payment behavior, Reducing long term delinquencies and write-offs.

Collection Management – Risk Modeling

Collection Scorecard is an indicator of the collectibility coupled with probability of a customer going severely delinquent. These scorecards are built using customers’ demographics and recent behavior like delinquency status, due amount etc. Collection scores help devise collection strategies - reminders, soft-calls, hard-calls, legal notice. Scores when coupled with value at risk can also lead to strategic decisions like outsourcing vs. in-house collection. Important decisions like agent allocation for efficient collection can also be made using these scorecards.

Churn Management

With fierce competition in the credit card space, it is not surprising to find customers holding more than one card. This becomes even more important for card issuers to not only be aggressive on acquisition front but also be proactive on retaining customers. Our Churn Management solution precisely addresses this concern by identifying cases of voluntary attrition in advance along with likely reasons for the same. Further to this, it also entails profitability analysis to identify choose-to-lose segment, formulating a design for the Proactive Retention Program and arresting attrition through implementation of retention strategies on target population.