Banking and customer loyalty

delivering incremental card spend through loyalty and customer acquisition

Trusted Data supported a leading regional bank in revenue generation by customising a loyalty programme to drive additional consumer spend

How our client realised an additional $18 mn revenue

Trusted Data supported a regional banking group who had seen credit card usage stifled in a competitive market.

With an opportunity to realise significant revenue uplift by refining the customer loyalty programme, the Client was convinced that an analytically-rigorous approach would help them quickly identify a more innovative way to engender customer loyalty and acquire a higher transaction count.

Trusted Data were engaged to apply advanced analytics to classify customer purchasing habits, which would reveal lifestyle segments such as individuals that are: fashion conscious, family orientated, or travel oriented.

This would enable marketing teams to design tailored customer loyalty programmes with vertical partners.

AI-driven marketing to design bespoke customer offers

Challenge

Poor credit card loyalty and activation had hampered growth of the Clients’ card channel.

The Client wished to better understand their client spend habits and effectively segment customers based on their preferences.

Clients that could be grouped according to their card usage habits could be offered more personalised loyalty offers to drive loyalty.

 

Solution

Extensive customer transaction data needed to be mined alongside customer profile data to help focus on the needs of a particular demographic to generate the best results.

To design effective loyalty programmes, the bank needed to understand those features / services their clients consider most important.

Clustering algorithms helped solve this problem by uncovering meaningful patterns within the customers’ profile and transactional data.

Examples of behavioural clusters using a bank’s transaction and profile data included: family orientated individuals, fashion conscious ladies and students with an interest in foreign travel.

These clusters then formed the segments of the loyalty based programmes to maximise their effectiveness by connecting customers with the most appropriate discount offers.

Incremental Card Spend

$18 mn

customer retention increase

21%

Client satisfaction increase

29%

Solution development time

14 wks