Industry Experience
- Financial Services Organization
- Challenges: 40% of customer relationships were
unprofitable. Due to mergers, customer base had increased significantly.
Bank wasn’t able to leverage this for cross-selling, up-selling.
Furthermore, it didn’t have the ability to distinguish profitable
from unprofitable cross-selling.
- Results: Marketing cycles shortened significantly.
On track to put $15 million in incremental revenues on the books
by 2004. As a result of early success, “information-based” marketing
initiatives slated to grow by 30% next year, while use of mass
marketing will decline.
- Challenges: 40% of customer relationships were
unprofitable. Due to mergers, customer base had increased significantly.
Bank wasn’t able to leverage this for cross-selling, up-selling.
Furthermore, it didn’t have the ability to distinguish profitable
from unprofitable cross-selling.
- Travel Company
- Challenges: >100% of profit from 25% of customers.
Limited ability to perform target marketing.
- Results: Cycle time reduced from 16 weeks to 6. Increased annual campaigns from 20 to 250. Complete return on investment in 6 months.
- Challenges: >100% of profit from 25% of customers.
Limited ability to perform target marketing.
- Bank
- Challenges: 110% of net income generated by
top 20% of customers. Attrition: 30% of new accounts closed within
one year (this is an industry average and not specific to this
particular client).
- Results: Identified top 20% and effectively cross-sell, up-sell and retain, as well as find more customers like them. Time to prep campaign decreased from one month to one week (sometimes less than a day when quick turnaround is needed).
- Challenges: 110% of net income generated by
top 20% of customers. Attrition: 30% of new accounts closed within
one year (this is an industry average and not specific to this
particular client).
- Telecommunications Company
- Challenges: Ad-hoc campaigns were difficult
to repeat and our client asked to help them to standardize their
marketing process. Poor tracking and reporting capabilities.
- Results: Campaign frequency from 1 - 2 programs per quarter to 10-20 per month, many in lights out environment. Cycle time reduced from 6 weeks to 10 days.
- Challenges: Ad-hoc campaigns were difficult
to repeat and our client asked to help them to standardize their
marketing process. Poor tracking and reporting capabilities.
- Insurance Company
- ROI Lift by Financial Category (Decreases shown as negative):
| Marketing Channel | Revenue | Gross Profit | Lead to Sales Closure | Cost Per Sales Closure |
|---|---|---|---|---|
| Direct Mail | +67% | +75% | +46% | -46% |
| Telemarketing | +62% | +60% | +45% | -31% |
| +92% | +80% | +75% | -79% |
Customer Acquisition and Management
Results/Benefits
- Reduced marketing campaign cycle time to market by two-thirds; improved
customer response rates by 4x
- Improved management control and decision making capabilities through enhanced analytics and reporting
