Business Challenge

    • 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.

Solution

  • 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.

Impact

  • 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.