Hyper-Personalized Sales Retention

Situation

A leading insurer struggled with persistent customer attrition, particularly during the Annual Election and Open Enrollment Periods. High churn rates threatened market leadership and necessitated an immediate and scalable solution.

Challenge

The insurer needed to pinpoint the drivers of attrition, retain high-value customers, and implement a predictive strategy to continuously refine retention efforts while optimizing budget utilization.

Approach

Mu Sigma crafted an advanced analytics-driven framework to address the insurer’s challenges and deliver sustainable retention strategies.

Key Steps:

1. Customer Profiling
   • Analyzed behavioral and demographic data to segment customers based on product type, usage, and payment patterns.
   • Evaluated promotional activities for each segment, tailoring approaches to address unique customer needs effectively.
2. Predictive Model Evaluation
   • Assessed three predictive models: Survival Analysis, Logistic Regression, and Recurrent Approach Models.
   • Selected the optimal model for targeting retention efforts and maximizing budget efficiency.
3. Message and Strategy Refinement
   • Identified retention drivers and at-risk customers, providing data-backed strategies to improve ROI.
   • Suggested adjustments to the product mix and promotional timing, targeting customers likely to churn during critical periods.

Impact

• 11% increase in sales from at-risk customers through targeted interventions.
• Retention of high-value customers, ensuring sustained profitability.
• Delivery of key customer retention metrics, enabling continuous refinement and future-readiness of retention strategies.