Improve your company’s strategy through Portfolio Analytics!

Taking a portfolio approach to managing customer relationships, will help your company maximize its value, since it will help you as managers to effectively deploy customer acquisition, development, and retention resources on the segments with the highest ROI. Managing customers as assets is a long-term strategy that produces value.

Case A

Optimize strategic business initiatives in Retail Sector using the intelligence of customer analytics 

The issue: ClientIQ was called by a multinational retailer, to assist on the optimization of its physical catalogue distribution strategy, using the intelligence of customer analytics.
 

The actions: Applying a combined view of basket analysis & GSIS analytics, ClientIQ’s analytics team measured the effectiveness of the physical catalogue distribution to generate incremental business impact by residence area. Based on the findings of the analysis, the team developed a revised catalogue distribution proposal prioritizing the distribution to residence areas with high profit generation ability and excluding areas with low or marginal impact.
 

The results: Through the revised business strategy developed by ClientIQ, our client achieved a 9% increase in sales with a 13% cost reduction resulting overall to a 25% increase in the revenue to cost ratio for this strategic business initiative.

Case B

Design your marketing strategy using the intelligence of customer analytics

The issue: ClientIQ was called by a multinational retailer, to assist on the development of the overall marketing strategy of a specific business unit.
 

The actions: Applying a combined view of basket analysis & portfolio segmentation techniques, ClientIQ’s analytics team identified the prevailing trends, challenges and opportunities of the business unit in review. Capitalizing on the finding of customer analytics, ClientIQ’s strategy & marketing teams, developed in cooperation with the client, the set of strategic & tactical marketing initiatives, covering the areas of digital marketing, tactical direct marketing, quality research and offering.
 

The results: Through the revised marketing strategy, customer penetration to the specific business unit increased by 13%, basket size increased by 5%, resulting to an overall growth in revenues of 6%. Also by improving the targeting mechanism of direct marketing campaigns, the ROI has been increased by 3.5 times, setting the basis for budget optimization in future campaigns.

Case C

Retention Process Optimization

The issue: ClientIQ was called to redesign the re-active Retention Strategy of a credit card issuer through its call center, focusing on Customer Equity maximization and resources optimization.
 

The actions: First call of action for ClientIQ's strategy and analytics team was to measure the life time value of every single customer of the issuer's portfolio and then classify the incoming attrition calls into segments based on the expected profitability. Second step, was to set the appropriate handling priorities among segments, i.e. the level of retention efforts and the appropriate mitigating offers. The above, were coupled with the design and the roll out of an enhanced infrastructure that could automatically provide customer information (i.e. segment and offering) on retention agents and an ongoing tracking mechanism to management, to monitor all stages of the retention process.
 

The results: Through the enhanced retention strategy, the credit card issuer managed to increase saved customer equity by 8%, while keeping retention unit's resources unchanged

Case D

Line Management Optimization

The issue: Regulatory changes, coupled with macroeconomic conditions may transform businesses. The credit cards industry is a great example that has gone through a tremendous transformation, moving from being one of the most profitable lines of business in banking in late nineties to a business that consumes equity and creates losses. The credit card businesses often fail to meet the ROE thresholds, with the most common reaction to the issue being the deleveraging of credit card portfolios, either by quiting the business altogether or imposing drastic reductions of the asset exposure. But is this the only solution?
 

The actions: ClientIQ – using advanced modeling techinques – can help you establish a methodology that will transform contingent liabilities and especially unused credit lines optimizing capital cost while revealing growth opportunities for your business.
 

The results: Applying ClientIQ's methodology for unused credit line management we helped our client release €1.2Mn (i.e. 3%) of its risk capital and materialize a €4.2Mn net financial benefit.