Achieving Retail Credit Card Profitability Through Marketing Optimization

July 19, 20210

BACKGROUND AND CHALLENGE

  • Alongside its insurance partners, a retailer offers relevant insurance products and services to its credit card database
  • ┬áNames are selected randomly at various time intervals throughout the year which result in inefficient higher marketing costs
  • The challenge was to create a framework and approach that improved efficiency of its insurance acquisition marketing costs

 

WHAT WE DID

  • Built the following models:
    • Upsell/Cross Sell Models┬áby Insurance
    • Contact Models Retention
    • Product/Service
  • Built a marketing contact database in order to utilize prior information based on marketing interaction.
  • Allowed us to select right names with the right insurance offer and at the right time.

 

WHAT WAS THE RESULT?

  • Below table looks at number of months of sales revenue that were required to pay back the initial acquisition costs
  • Prior to any data science activity, approx. 50 months of sales revenue was the B/E point which decreased to approx. 8 months of sales revenue with our data science solutions.

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Copyright by Boire Analytics. All rights reserved.

Copyright by Boire Analytics. All rights reserved.