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CLIENT CASE STUDY

Latin American bank: Using customer analytics to increase credit card revenue

Overview

A Latin American bank was experiencing relatively low usage, along with high rates of attrition, in its credit card business. The client turned to Accenture, the bank’s analytical reference partner, for customer analytics. Accenture developed an analytics-based decision system to recommend the next best card action (NBCA) for each cardholder. With each update of the source data, the system produces recommendations, suggesting actions and how best to achieve the desired results. Accenture forecasts first-year results will grow by millions. As the system becomes more sophisticated, potential revenues can rise as the customer base grows.

SOLUTION

Accenture developed an analytics-based decision system to recommend the next best card action (NBCA). Two components combined to deliver personal recommendations:

  • Predictive models estimated the probability and profitability of various behaviors, such as reactivation, growth in number and amounts of transactions through installment purchases and cash advances.

  • Multiple segmentations revealed the needs satisfied with the card. The first looked at transactional or financing needs, and another detailed the revolving installment in cash advances. Further segmentation revealed the types of shops in which the client used the card and typical paths of engagement with merchants.

Accenture implemented the models in the client’s analytical-probes platform. With each update of the source data, the system produces recommendations. The system suggests actions and best ways (e.g., favored stimuli for higher rates of commercial effectiveness) to achieve the desired outcomes.

RESULTS

Through NBCA, the bank can conduct sharply targeted promotions that improve management of the client lifecycle and boost business outcomes. Based on experience in similar customer-analytics projects, Accenture forecasts results will grow by millions over the first year of system usage. Additional revenues are likely as the active customer base increases and the system gains sophistication.

Multiple Accenture assets allowed for fast development and enabled smooth integration into the client’s processes. The solution was built from a predefined data model, with analytical-model accelerators and predefined decision architecture. Built on an open platform, the solution is ready to be enriched with further predictive models designed for high performance.