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Do you know what's preventing your growth?

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CRM HealthCheck boosts credit card portfolio revenue by 25%

The Business Challenge

Our client's credit card division was facing stagnant acquisition rates, increasing attrition rates, and declining spends per customer. In order to improve performance, the client needed to reassess their marketing strategies, processes, and intelligence functions.

The Solution

Fractal's analytics team conducted an Analytical HealthCheck to assess the bank's processes and skill sets to carry out CRM (Customer Relationship Management) initiatives. This engagement analyzed and identified gaps in the current systems, processes, and strategies for the credit card division compared to established benchmarks. We then designed and implemented a revised marketing organizational structure that would support the analytical initiatives of the bank.

After completing the HealthCheck, key business areas requiring immediate attention were identified and the need for continuous analytical support was established. Next, our consultants recommended a BOT (Build, Operate and Transfer) engagement to tackle all the challenges faced by the credit card division, including:

  • Customer segmentation model
  • Attrition models (short-term and long-term)
  • Activation model
  • Revolve increase response model
  • Cash advance usage model for varying CA rates
  • Merchant scoring model
  • Analytical MIS reporting system

An integral part of the engagement consisted of training and transferring knowledge for the new solutions to an in-house business intelligence team, so that they will be capable of handling the complete set of proactive and ad-hoc analytical activities independently.

The Results

Fractal's Analytical HealthCheck and subsequent recommendations on marketing and acquisition strategies helped the bank yield a higher return on marketing investment. The bank realized an increase in active portfolio growth rate and reduced attrition.

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These achievements included:

  • A 25% increase in revenue from the main marketing segment in subsequent quarters.
  • A 4% decrease in attrition rates.
  • A 3% increase in active portfolio acquisition rate in the post analysis period.