Challenge: High customer churn

As a result of multi-banking behavior and new niched competitors gaining share, a large retail bank was experiencing a significant churn in their customer base as well as a decreasing share of wallet. For more than two years, the bank had tried to develop a new concept for how to package and price their products and services, while still being a bank for all types of customers. QVARTZ Analytics was together with Vertical and QVARTZ asked to help accelerate the development and implementation of such a new customer offering, including an associated logic for package pricing and loyalty reward, which differentiated prices and products across customer segments, without excluding anyone.

Solution: Data-driven customer offering

The project was delivered by leveraging the collective strengths of QVARTZ Analytics, Vertical and QVARTZ, combining complex data analysis with innovation and strategy. In order to get a holistic view of the customer, customer segments were developed using both a qualitative and a quantitative approach, which were executed in parallel. The qualitative approach was executed through classic problem solving, interviews and workshops, while the quantitative approach utilized machine learning to understand customer buying behavior and the type of products, customers were likely to buy. Based on the results of the two approaches, pricing and loyalty models were developed, resulting in a data-driven customer offering.

Impact: Maximizing share of wallet

The qualitative segments from interviews were challenged and aligned with the quantitative insights, which  showed that e.g. many young customers need new services, however, the percent of revenue from young customers was significantly lower. A scenario which created the required constructive conflict of "what are we solving?". Should the bank address the key revenue segment in the next coming year or build future segments?

QVARTZ Analytics, Vertical and QVARTZ delivered a proposed package offering a new structure of the bank's products, including sub-bundles and pricing depending on the life stage of the customer. In addition, the bank was recommended to reward loyal customers to a larger degree using the new loyalty model.