A MNO with operations in several emerging markets was experiencing significant churn and was looking for greater insights to understand its customer lifecycle and increase ARPU. Existing marketing campaigns were not delivering the business results they wanted, and the MNO was losing market share.
Maxymus Marketing Solutions
Cignifi created a suite of behavior-based marketing campaign models across multiple categories such as Churn, Best Offer, pre-to-post paid conversion and Lifetime Value in order to increase lift and drive ARPU.
Across the Board Increases
Cignifi delivered an average of between 50-60% increase in lift vs. the traditional segment-based marketing approach. In one country Cignifi models provided a 70% increase in the sale conversion rate from contacted customers while decreasing default rate by 56%. These astonishing results were achieved by Cignifi data scientists using Maxymus proprietary behavior based analytics.
• • • RISK SCORES • • •
Creating opportunity with Thin-File and No-Hit customers
Emerging Market Opportunity
Many consumers in emerging markets lack traditional credit scores for underwriting. A large retail store chain was seeking ways to increase approval rating for installment credit without increasing default rates.
Cignifi Risk Scores
Cignifi created scores for thin-file/no-file consumers using mobile device usage data. The scores provided a highly predictive and reliable alternative to traditional credit scores.
Cignifi credit scoring using non-traditional data enabled underwriting and risk pricing of underserved store customers who would otherwise have been denied credit. Cignifi scores helped the retail partner reduce the default rate by 72%, with a significant impact on bottom-line profit.
• • • BEHAVIOR BASED MARKETING • • •
Customer Acquisition Credit Card Marketing
Low Consumer Response
A major Financial Services Provider in Brazil was having difficulty expanding its customer base credit cards. They were experiencing high new account acquisition costs due to poor response and activations rates
Maxymus Marketing Solutions
Cignifi worked with the Financial Services provider and a major Mobile Network Operator to develop a co-branded credit card marketing campaign to target qualified mobile customers without exposing the personally identifiable information of the customer to either party.
Default Rate Reductions
Cignifi’s data scientists developed behavior-based marketing scores that decreased the cost of new account acquisition by 55% while increasing the approval and activation rates for net-new customers by 24%. With Cignifi predictive analytics the Financial Services company was able to reduce the overall default rate in its portfolio from 12% down to 9%.
• • • MARKETING ROI • • •
Driving Adoption and Mobile Money Use
Anemic Market Penetration
A major Mobile Network Operator in Africa was having trouble driving the adoption and usage of their mobile money services, and was looking for an innovative approach to increase market penetration.
Cignifi analyzed a sample of 7 million prepaid subscribers and found significant correlation between GSM usage and the propensity to use mobile money. Cignifi data scientists identified a set of key variables that were highly predictive for identifying users likely to adopt mobile money. Cignifi scored the sample set and provided the MNO with a targeted customer list to market their mobile money products to.
Cignifi’s data driven approach delivered a 90% lift on the top 30% of potential mobile money users within the sample data set, and an average of 10-20% across the entire sample set. Cignifi’s predictive analytics drastically improved business results by significantly increasing revenue while decreasing time, money, and effort spent on marketing to customers who are less likely to respond.