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Our consultants worked in a highly successful marketing campaign, conducted
by our client, to reduce home mortgage customer churn. The bank's marketing
division decided to run a campaign to encourage mortgage customers to stay
with the bank.
Our consultants carried out a predictive modelling exercise to identify those
customers most likely to leave. This process involved collecting data
on all mortgage customers and performing quantitative analysis on a three
month subset of customer churn data.
Applying statistical techniques, our consultants started to get a feel for those
factors that made a difference. This information was fed into a predictive
modelling tool that uses neural networking techniques to build a model
to predict churn. This model was applied to all mortgage customers. Our consultants
provided our client with a list of customers ranked in order of their likelihood to churn.
Through a targeted marketing campaign, our client has reduced the customer churn rate
by a half, providing a return that is several times the initial investment.
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