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Enhancing Customer Segmentation with CLTV Analytics for an Insurtech Company .

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Overview.

An Insurtech company aimed to identify the characteristics of their most profitable customers to acquire more valuable clients. Coforge implemented a comprehensive CLTV (Customer Lifetime Value) analytics solution, evaluating key components, determining present and future customer value, and classifying customers into high, medium, and low LTV categories. This enabled the company to optimize resource allocation and focus acquisition campaigns effectively.

Challenges.

The client faced significant challenges in customer segmentation: 

  • Identifying Profitable Customers: Needed to discover the characteristics of highly profitable customers to attract similar prospects. 
  • Resource Allocation: Required optimized allocation of resources among different customer segments. 

Solution.

Coforge implemented a comprehensive CLTV analytics solution: 

  • Component Evaluation: Evaluated and refreshed the list of components crucial for determining CLTV. 
  • Customer Value Determination: Used SAS OROS and Enterprise Miner to assess the present value and future potential of each customer. 
  • Future Value Modeling: Determined future value based on cancellation value, claim value, and cross-sell value through separate modeling exercises. 
  • Customer Classification: Classified customers into three distinct classes – High LTV, Medium LTV, and Low LTV. 

Key Highlights: 

Coforge's solution delivered significant value to the client's operations: 

  • Focused Acquisition Campaigns: Enabled targeted acquisition campaigns tailored to different customer classes. 
  • Optimized Resource Allocation: Helped the client allocate resources more efficiently among various customer segments. 

The Impact.

Acquisition Campaign Effectiveness 

Increased through targeted efforts 

Resource Allocation 

Optimized across customer segments 

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