Optimizing ROI through Marketing Modelling within a Financial Institution

BACKGROUND AND CHALLENGE

• Marketing upsell efforts within this financial institution were becoming increasingly inefficient
• Prior strategy was to use business rules which were becoming increasingly outdated.
• The challenge was to build a model that optimized the likelihood of a person acquiring an upsell product.

 

WHAT WE DID

Built the upsell model that comprised the following factors:

• • Behaviour Score
  • Average Spend
  • Have an RRSP Product
  • # of Fin. Instit. Products
  • Avg. % of Credit Limit Used
  • Live in Prairie Provinces

 

WHAT WAS THE RESULT?

• • Listed above is a chart where names are ranked by descending model score into quintiles
    • Assumptionsare:
      • $60 of incremental spend per customer
      • $.80 per marketing effort
  • Top 200000 names were highly profitable(positive ROI)
  • Bottom 300000 names are not profitable as attested by negative ROI.