Creating Customer Acquisition Strategies for

a PLCC Business using Analytics in Retail

Solution Overview
In the years gone by, a Retail Store used to acquire customers for their Private
Label Credit Cards primarily through walk-in customers or through mass
mailings. Over time, these traditional methods have started giving very low
ROI and hence businesses are now demanding much more sophisticated
methods to target the right prospect through the most cost effective channel
and increase the response of these prospects to convert them to customers.
The introduction of various customer touch points has opened up various opportunities to target in a more cost effective manner.
Yet customer acquisitions are much harder than it might appear.

Business Problem - Acquiring the Right Customer through the Right Channel by Minimizing Marketing Spend

■ How do we increase the response to Direct Marketing offers? ■ Are we targeting the Right Customers with Right Offers?
■ Who responds to our Offers? ■ Are we targeting the Customer through the Right Channels?
■ How to increase the return on Marketing Spend? ■ Are we getting the best ROI for every Marketing $ spent?

Integrated Customer Selection Process – Targeting the Right Customer

■ Understanding the Response Behavior to be modeled ■ Develop Customer Segments / Propensity Models for Offers
■ Identify Data Sources and Clean Up and Channels

■ Select Advanced but Robust Model ■ Map to the outcome (Sale)

■ Build and Validate Model ■ Customer Selection Optimization to maximize Sale

■ Robust tracking and feedback loop

Pre-Screen Model for Customer Selection

Look at the existing customer base and identify key characteristics. Utilize the learning to

Responses to Offer 3
Responses to Offer 1

Responses to Offer 2
Customer Segments
identify ‘similar’ customers from a prospect pool and allocate credit limits which are similar

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to the existing customer base.

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Pre Selection helps in targeting “similar” customers for a product uptake. Since the
characteristics are similar to existing customer base, the probability for product uptake Responses to Channel 1

increases. Hence the responses to campaigns would be much higher as compared to Responses to Channel 2

random mailing and the campaign efficiency would increase. Responses to Channel 3

Customer Segments

Response Modeling to increase Campaign Efficiency

Develop a Response based model which would help in identifying customers most likely to respond to a specific campaign. This
would help in focused targeting which would help in reducing marketing spend and increase ROI for campaigns.

Predictive Pre Select Incremental

Population
Modeling Consumers Lift

Gains Chart
100% Lift
Customer/
80%
Prospect Response/ CUM% 60% Model
Database Conversion OF
Responders
40%
Historical Responder Model Build
Data from Rando
Random
20%
Mailing
0%
1 2 3 4 5 6 7 8 9

An automated optimization framework development will result in $ saving, using the same Marketing Budget
Our Services
CEQUITY’S services are powered with deep domain expertise and process excellence by adding Intelligence to Information. Our
banking Analytics consultants are capable of generating effective solutions to your business problems and quickly provide you with
a competitive price and turn-around time. Choose from a wide array of reports covering demographic trends, consumer spending
potential, business profiles, consumer segmentation, activity volumes and more.

Our Analytical Consultants are qualified to provide deep insights by objectively analyzing vast amount of customer transactional
lifestyle and secondary data to help make quick business impact. Our consultants have rich experience in key verticals like: financial
services, insurance, mortgage, retail, travel, entertainment & telecommunications.

Our analytics services include:

CEQUITY BIZACTION – Modeling Services

Insight2Action Acquisition Models Insight2Action Value-build Models Insight2Action Retention Models

Prospect Modeling and Scoring Cross-Sell/Up-Sell Analytics Churn Prediction

Lead Scoring and Enhancement Lifecycle Profiling Attrition Models
Optimal Contact Strategy Development Response/Conversion Modeling
Portfolio Analysis CLTV Modeling Segmentation Models

About Cequity
Customer Equity Solutions (Cequity) Pvt. Ltd. is an IT-enabled Customer Experience Management Company which will help
enterprises improve marketing performance and accelerates customer relationships.

We help enterprises by combining data, technology and services to build actionable analytical marketing frameworks, optimize
marketing performance and accelerate real-time customer engagement. Thereby, enabling greater ROI on their marketing
technology investments. Cequity brings a blended perspective which allows companies to bring the power of Marketing automation
technology to business problems. Our services include:

Customer Management Consulting Managed Campaign Management Services

Managed Analytics Marketing Operations and Measurement Services
Marketing Database Solutions Event Driven Marketing Services

Contact us:
Customer Equity Solutions Pvt. Ltd.
India USA
Mumbai Office: Chicago Office:
105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, 626, Grove Street, Evantson, IL 60201
Mahalaxmi, Mumbai-400 011, India
Phone: +91 22 23000133 / 23054039, Fax: +91 22 23053809

Website: www.cequitysolutions.com Email: info@cequitysolutions.com