Analytics in Action

Targeted Prospecting. Increasing Profits by 14%.

Client : An Insurance Provider in the US
Business Situation :
The insurance provider generated leads through cross-selling. Potential customers were targeted in a 4-stage process, and they generally displayed 4 possible outcomes:

Targeted Prospects

Approved Declined

Completed Forms Did not

Paid Premium Didnt Pay

Resources were being wasted on pursuing unlikely Prospects classified in red boxes above. The insurance provider wanted to determine which members were more likely to complete at each stage , and then fast track the application through the approval process. By reducing the proportion of declined and incomplete applications, operating costs could be optimized.

The Task :
- Develop a framework of predictive models to calculate the probability of a prospect purchasing the insurance product - Get a more targeted base of Prospects, and hence reduce costs by removing prospects with least probability of buying the Product

Analytical Framework :
Historical data , which contained information from both, internal and external sources, was analyzed Logistic models were built for identifying separate probabilities for each stage of the approval process Testing was done if Oversampling or Undersampling would improve the performance of the predictive models All the models were then combined to identify the best leads The models were validated and implemented as SAS Macros to enable real-time scoring

Target : 100
Approved : 85
Completed: 68 Paid : 58

Target : 75
Predictive Models
Completed: 62

Approved : 70
Paid : 55

The Result :
The framework of 3 models provided useful insights on probabilities associated with approvals and important factors affecting it Up to 25% of total applications were removed with a loss of just 5% of Paid customers With costs going down by 25%, we were able to achieve an increment 14% net profits.

Y O U R PA R T N E R I N A N A LY T I C S C O N S U LT I N G
ADVANCED ANALYTICAL SOLUTIONS
Industry
Consumer Finance Credit Cards Loans and Mortgages Retail Banking Insurance Wealth Management Consumer Goods CPG Retail Travel & Leisure Auto and Consumer Durables Telecom

Business Focus
Investment Optimization Revenue Maximization Cost and Process Efficiencies Forecasting Predictive Modeling Risk Management Pricing Optimization Customer Segmentation Supply Chain Management Strategic MIS

Tools and Techniques

SAS, SPSS, R, VBA Cluster analysis Factor analysis Conjoint analysis Perceptual maps Neural Networks Chaid / CART Genetic Algorithms Support Vector Machines Regression / Logistic Regression Sentiment Analysis

MANAGEMENT TEAM
Roy K. Cherian CEO Roy has over 20 years of rich experience in marketing, advertising and media in organizations like Nestle India, United Breweries, FCB and Feedback Ventures. He holds an MBA from IIM Ahmedabad.

GLOBAL EXPERIENCE. PROVEN RESULTS.

Anunay Gupta, PhD COO & Head of Analytics Anunay has over 15 years of experience, with a significant portion focused on Analytics in Consumer Finance. In his last assignment at Citigroup, he was responsible for all Decision Management functions for the US Cards portfolio of Citigroup, covering approx $150B in assets. Anunay holds an MBA in Finance from NYU Stern School of Business. Buck Chintamani EVP, Strategic Initiatives & Business Development Buck has extensive experience working with global clients across sectors. He was an early employee at Infosys, a founding team member at supplychain software startup - Yantra, and part of the management team at RFID sector startup - Reva. Most recently, he was the Vice-President for Service Partner Strategy and Programs at product lifecycle management software company, PTC. Buck has an MBA from IIM Ahmedabad. Issac Mathew EVP, Client Services Issac has over 12 years of experience servicing clients in the Retail and Manufacturing sectors in the US and India. He has held key positions with Cognizant and PricewaterhouseCoopers. In his last assignment he was leading PricewaterhouseCoopers Business Intelligence practice for Southern India. Issac has an MBA from IIM Calcutta.

CONTACT
MARKETELLIGENT, INC.

www.marketelligent.com

80 Broad Street, 5th Floor, New York, NY 10004 1.212.837.7827 (o) 1.208.439.5551 (fax) info@marketelligent.com