Financial Services
Examination of customer auto insurance behavior for increased renewal rates
05 Jan 2024
ContextClient
wanted to analyze the auto insurance policy purchase and renewal behavior of
its customers and identify upside possible from increasing renewal rate as well
as opportunities to sell them other insurance and financial products to
increase the customer lifetime value
Approach
Studied
existing patterns
- Crunched
a comprehensive dataset spanning five years and over 40 million rows to
understand renewal patterns based on customer demographics, vehicle
characteristics, location, and channel partner type
- Further
analyzed data to check for average order value, repeat purchase rate, revenue
churn rate, net promoter score, etc., to develop actionable insights
- Understood
the sustainable revenue streams and the current competitive advantages and
possible advantages as a result of expanding offerings
Conducted
research and analysis
- Conducted
in-depth consumer research and interviews to understand their willingness to
buy other financial products from client and hence identified cross-sell
opportunities
- Understood
the channel partner research and willingness to assist client in meeting its
objectives
- Assessment
of potential gains through increased business scale, earned commissions, and
overall revenue growth
Implementation
and prioritization
- Preparation
of charters with key action points for implementation
- Prioritization
of various opportunities was done considering feasibility and potential upside,
resulting in a realistic assessment of achievable gains
Praxis value delivered
- Client
got detailed insights on purchase and renewal patterns of their customers and
channel partners and identified initiatives to reinforce sales by increasing
renewal rates
- Client
also obtained an understanding of cross-sell opportunities of other insurance
and financial products
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