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Analytics for Retail

Solution Overview
One of the biggest problems many Retail Stores providing credit through their proprietary cards face is around what needs to be done post customer acquisition. Once the customer has been acquired and has been transacting, the behavior of the customer needs to be monitored and on the basis of this behavior differential strategies for customer growth need to be executed. Each customer cannot be treated similarly since customer behavior varies among individuals and hence they need to be treated differentially. The same can be achieved by utilizing analytics which provides insights in customer behavior to help distinguish amongst customers.

Leverage Customer Growth through Data Insights
You need to differentiate customers and treat them differently. For which you need to answer the following questions:

  • Do we understand the drivers of Profit?
  • How different Marketing Drivers (Response Rate/Sale/Geography) are related to Profit?
  • Are we maximizing for Marketing Drivers and Profit?
  • Do we know the Future Demand for our Products?
  • Do we know how customers behave at various stages of their account lifecycle?
  • Do we know the Life Time Value of Customers?

Create Customer Lifetime Value and Utilize in Credit Line Increase Strategies & Offer Timing resulting in Incremental Sales

Create Customer Lifetime Value and Utilize in Credit Line Increase Strategies & Offer Timing resulting in Incremental Sales

Utilizing Customer Insight to drive Strategies for the Right Customer at the Right Time
  • Identifying Profitable Segments
  • Offer / Product Design specific to segments
  • Build Predictive Models for Each Driver
  • Optimize Across Drivers
  • Use Secondary data to increase the Prediction Power
  • Incorporate Market Research Data for fine tuning
  • Develop robust Experimental Design framework using Fractional Factorial
  • Build Models to predict customer behavior like sales likelihood, time of buy, life of customer, offer response, offer incremental sale, revolve behavior, expected sale, attrition probability, etc
  • Creation of Customer Lifetime Value from these predicted values
  • Overlay Business Strategy
  • Robust Program Impact Tracking Mechanism
  • Feedback Loop for full scale rollout
Develop customer segmentation using external data for prospecting in the absence of internal performance data.
Create a Framework for Profit and other Customer Drivers and increase Profit With no compromise on Marketing Objectives.