New Customer Acquisition (NCA) Strategy

analytics

#1

Hi Folks,

I would like to discuss one business problem with you.

A financial organisation does credit card business by offering Credit Cards to those customers who are rejected by other financial institution. You can assume that the organisation offers only one product i.e., Credit Card. Hence, there is no cross selling opportunity (up-selling possible!!)

Imagine two scenarios where the organisation 1) is New to business, 2) Has a vintage>3 years

Till now, their business model was simple. They get the data of rejected customers and offer CC through telecalling. Since, these customers are rejected by other banks, the conversion ratio for the financial organisation is significantly high.

Suppose you are analytic firm who offer analytic driven strategy to improve NCA strategy.

Now the question is,
What type of data analytics solution you will offer them to grow the sourcing business for the above two scenarios?
Note that, your main focus is increase in sales (both in terms of volume and value)


#2

Hi @aranya143

This is quite an interesting post. The concerned financial organization can make use of a customer credit scoring model (a predictive model) for the potential clients before offering them CC.

The credit scoring model would be helpful in estimating whether or not a customer would be profitable to the company. In this case, the credit cards can be offered to the clients with a decent credit score, or up-selling can be done with the clients with higher credit score.

Now to build such model it is better to get as much client-level data as possible. The data can be a mix of client’s credit history data, demographic data, and client’s data with the company (in case of existing client).

So, to prepare a credit scorecard a logistic regression model is a good choice to begin with.

Hope it helps!