Enhancing Customer Segmentation with CLTV Analytics for an Insurtech Company .

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