… for a bank marketing-campaign to target the right customers
Business Challenge
- A bank with more than a million accounts wanted to select customers for a marketing campaign — to increase debit card transactions
- They wanted to segment their customers before selecting the campaign target audience
Analytics Approach
- Recency, Frequency and Monetary (RFM) segmentation based targeting was used
- RFM value variables were created from 12 month transaction history
- Consolidated RFM score was developed and used to generate 5 RFM segments
- Segments were profiled on behavior and transaction levels to determine ideal target segments
Impact
- We targeted the mailer on the low and medium RFM segments – this led to significant incremental lift on debit card transactions