Originally published by Quantzig: Customer Analytics in Banking Helps an American Bank to Improve Customer Acquisition Rate by 17%

Synopsis

The banking sector is undergoing a seismic shift from product-centricity to customer-centricity. However, effective customer engagement remains a challenge, particularly in the critical moments of customer onboarding. For years, banks have focused on managing the entire client life cycle.

While banks possess rich customer insights, the real challenge lies in disseminating these insights across the organization. Customer analytics in banking offers granular insights into customer needs and behaviors, enabling personalized interactions. Leveraging Quantzig's expertise in customer analytics, an American financial services provider transformed its customer lifecycle management, achieving remarkable results.

Client Background

Headquartered in California, our client is a leading global financial services provider with a widespread presence across the United States, boasting significant market capitalization and total assets.

Business Challenges

Facing significant fraud incidents in 2018, our client sought assistance from Quantzig to enhance fraud detection capabilities through customer analytics. Additionally, they aimed to segment customers based on demographic and behavioral factors and boost customer acquisition rates, which had been declining over the past year.

Solution Provided

Quantzig's customer analytics experts developed a comprehensive solution to address the client's challenges. Leveraging advanced analytics and customer segmentation techniques, we implemented a framework to identify fraudulent activities and design an analytics-driven dashboard for proactive threat detection.

Business Outcomes

The implementation of customer analytics yielded impressive results for our client:

- Improved customer acquisition rate by 17%

- Enhanced customer retention rates by 54%

- Reduced financial frauds, resulting in a saving of US$2.5 million in FY 2019

- Personalized customer interactions and increased cross-selling opportunities

Conclusion

Customer analytics has emerged as a game-changer for banks, enabling them to deepen customer relationships, mitigate risks, and drive revenue growth. Through our collaboration with the American banking giant, we demonstrated the transformative power of data-driven insights in shaping customer engagement strategies and achieving tangible business outcomes.

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