Lead Generation from previous customers

3AI August 16, 2020

Leading Life Insurance Company In Japan

Problem Statement

• Loss of premium due to customers lapsation.
• The premium attached to the ex-customers totaled up to 595 billion Yen (US $ 6 BN)

Analytics Led Approach

• A methodology for developing a lead generation model: with an approach to seek homogeneous segments and a segmentation schema that is meaningful, actionable, stable, sufficient in size and defensible was built
• Segmentation is carried out using 3.5 million policies related to 46 active products
• Customers are segmented based on demographic, attitudinal, behavioral, income , and region basis.
• Product affinities of segments of customers was identified
• Developed an optimized techniques to recommend products for each customer

Business Impact

• Identification of product affinities of segments of customers
• A product recommendation engine to provide new product recommendations (5 each) with their probability of conversion for all 3.5 million lapsed customers was designed

Critical Success Factors

• US $ 300 MN worth of leads generated. 1% conversion of these leads will result in US $ 3 MN in additional premium to the insurer
• Up to 20% improvement in upsell through targeted marketing
• identified 234 Bn Yen that can be obtained from Ex-Customers
• Campaign Feeding solutions have been implemented with a feedback loop to improve the accuracy of the future recommendations