This PPT slide, part of the 78-slide Guide to Delivering Best-in-Class Customer Care PowerPoint presentation, focuses on leveraging targeted analytics to uncover profitable cross-selling opportunities within a banking context. It highlights a common issue: traditional propensity models often overlook the varying profitability of different product combinations. For instance, the financial impact of cross-selling an overdraft product can differ significantly based on the specific customer segments being targeted. The slide illustrates this with an example comparing two scenarios of cross-selling overdrafts to different customer profiles, revealing a stark contrast in indexed total contribution per household.
The left side of the slide shows a scenario where cross-selling to customers with checking accounts, money market accounts (MMA), and bankcards results in a 10% decrease in contribution. Conversely, targeting customers with checking, savings, and bankcards yields a 15% increase in contribution. This discrepancy emphasizes the importance of understanding customer profiles and their respective product combinations.
On the right side, tactical analytics are outlined as a means to integrate propensity to buy, product profitability, and channel behavior. The steps include identifying the most profitable product combinations, understanding key household characteristics, and defining “look alike” households. This structured approach allows for a more refined targeting strategy. The slide also suggests assessing customer channel behavior, which can enhance the effectiveness of cross-selling initiatives.
This content serves as a guide for organizations looking to optimize their cross-selling strategies by utilizing data-driven insights. It underscores the necessity of tailoring approaches based on customer characteristics and product profitability to maximize revenue potential.
This slide is part of the Guide to Delivering Best-in-Class Customer Care PowerPoint presentation.
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