Case Studies / Case Study 3: Say goodbye to attrition and hello to growth – using modelling insights to maintain a customer base for a financial client
Background
Our client, a leading financial supplier, approached us at Data2Decisions to help them develop a deeper understanding of the relation between advertising spend and awareness/consideration. They needed this in order to maintain and develop a solid customer base in a market where attrition was high.
Structural equation model – awareness/consideration, current accounts
Recommendations
Our analysis gave the client an understanding of the customer purchase cycle over time.
Our solution allowed us to combine previous analysis to identify relations between media investment, key tracking measures and product sales. This allowed our client to identify opportunities for short and long term growth.
Results
Our findings allowed our client to maintain and re-allocate budgets across the entire year and led to the following:
successfully increased both key tracking metrics
increased current accounts over 40%
Insights
A previous sales modeling project, conducted by Data2Decisions, had provided a strong understanding of the key sales drivers, and had allowed our client to make cost reductions and improve media optimisation to maximise sales.
Knowing this we then measured the impact of media on tracking measures, awareness and consideration to give our client a clear understanding of the purchase cycle across a number of products and channels:
Media has a 2 month lag on awareness measures
Awareness has a 1 month lag on consideration
This insight provided an indication of the current strengths and weaknesses of the client with respect to customer retention and therefore how to grow on the existing customer base.
