Increase in revenue
Customer profiling module - Used a combination of customer profile and historical transactions' data to calculate propensity of a customer to purchase the product.
Price Elasticity Model - ANN based price elasticity models with the primary target of profit maximization
Pricing Engine - Using price elasticity and customer propensity models, the engine is able to generate scenarios based on differential prices to arrive at the decision of pricing.
The solution has a feedback loop which takes into account customers' response to campaigns and this data is fed as input to the pricing engine for further refinement.
We helped the clients prioritize a set of financial products and associated campaigns to be launched as a part of the pilot run. Analyizing the results and response to these campaings, laid the ground work in further scaling the model systematically for other products across major markets/regions.
Pricing experimentation carried out for the identified products led to incremental revenue realization of ~3. Understanding product drivers helped clients realize product differentiators. These helped the marketing team design a value-based personalized marketing campaign for the borrowers.