Using Data to Launch New Channels for Customer Acquisition
With the digital payments solutions space getting competitive, companies are increasingly turning to data to give them a competitive advantage.
Our client, a major player in this space, is an advanced user of analytics. We run exploratory analysis for them to help uncover deep consumer insights. One such analysis led to a very interesting finding.
An analysis of digital consumer data found that the probability of a consumer lapsing decreased significantly if used the payment solution a certain number of times within a fixed time period.
Furthermore, an optimal number of transactions over a time period was identified and defined for an individual to have a ‘high customer lifetime value’.
The insights derived from the exploratory analysis led to LatentView recommending a new offering – gifting services. This would help achieve the optimal level of transaction required while also adding significantly to new customers.
Text analytics was used to identify top gifting occasions around which marketing programs could be developed. In addition, messages and e-cards around these could be made available thereby restricting the consumer’s need to leave the client site.
The gifting solution has the potential to increase number of new customers by around 10%.
The Customer Lifetime Value of these customers is 66% higher than the average.