Being the highest-rated app with 4.5 for mutual fund investment, financial product companies has to count on cross-selling and up-selling for the business strategies to be on the top board, ET Money rightly acknowledged the fact of tracking that customer who are interested in buying health plan or term insurance, and that’s how investing on predictive analytics made them to grow by 180% in cross-selling in just 3 months.
ET Money was ready with 3a stage approach set up for this project, where it started to apply the certain model to predict the intent of the customer i.e. predicting the interested customer who are willing to purchase another product, the second was to prospect the approval from the customer, although the customer might show their interest but cut out to buy for the same. And lastly was to predict the time of swooping it down, because bombarding your customer with so many products will definitely create a great experience but on the same line it may seem like ads which have to land at some point. Hence, ET Money begin to fetch up its customers to know what kind of users they are who are investing and what they prefer, this made all data-driven from convergence to retention to cross-selling to a big promising results. ET Money has built a fair understanding of their customer’s demographic from income level, savings to analyze the spends of their customer.
The company also used another variable of data insights which is customer interaction with their application, they didn’t left that column blank as a customer gets literate about big cap of mutual funds through reading a blog or a video that equip them with tax-saving investments and this wide range of integrated spends pattern and purchase behavior on the application has acted as a strong set of indicator to feed the predictive analytics algorithms. And hence ET Money got the answer of “what’s” probability of their user’s next step, and this made the company to improve from wealth to credit line in cross-selling by 180% i.e. 1.8X jump in 60 to 90 days.
Undoubtedly data are the facts that cannot contradict what data says, it’s not only ET Money has witnessed the rise in their revenue, TESCO survived in the amid covid-19 by shifting to data-led price investment strategies which showed highly visible products have inelasticity demand, the company also learned about their data that these products brought along with other product which have low profitability and that has led to low return from the price investment. TESCO listened and reacted to its data insight and started to optimize the price of those products and associated products which turned into positive ROI for the business.
Therefore investing on predictive analysis is huge thumps up for all the firms who are surviving into this changing market environment, it gives you smart move to add more insight and more clarity towards the decision making for the business. Predictive analytics will always have hints and links to growth.
II MBA, DSCE