Ready to achieve real impact with Data & Ai?
USE CASES
Omni-channel routing
Boosting conversion rates and profitability of a financial service provider with a smart omni-channel routing solution
Situation
Our client, a large financial services provider, had a B2C online product where conversion rates as well as generated revenues were below expectations. The bank sought to investigate whether any improvements could be made, and turned to NEWNOW to conduct a preliminary analysis and suggest potential solutions.
The product could be bought by retail customers through an online journey, where the company then decided between three routing channels where the customers was served:
- the online channel, where the customer remains within the client’s system and is expected to complete the application there;
- the telephone advisory, where the customer receives a call to get guided instructions on how to purchase the product;
- an affiliated marketplace where the customer can potentially receive product offers with more favorable terms, and where the client earns commissions from signed deals.
Challenge
Before our involvement, the client would call customers in the online process at random, while those with a bad credit score would be rejected from the process and sent to the affiliate marketplace directly.
In an initial analysis, we concluded that
- The telephone advisory could become significantly more efficient by targeting the calls to specific individuals rather than performing random calls. This would result in a higher percentage of people completing the loan application, following a call, and consequently a higher ROI.
- The bank could significantly increase their revenues by sending more of the customers with a low probability of purchasing the product directly to the affiliate partner, where customers are more likely to convert, and generating revenues through commissions.
Solution
To address these challenges and capture the opportunities, we trained a ML model that learns to choose the best channel and customer journey for each customer.
Using historical sales data and details of each loan applicant, our AI model determines conversion likelihood & ROI by channel and sends customers on the optimal journey to maximise the banks profit.
We delivered and integrated our scalable AI solution into the client’s product portal to enable real-time, automated decision making for each customer.
The optimized omni-channel routing approach
Two specific decisions were optimised with AI:
- Our Smart Routing algorithm was able to identify the customers with a low conversion probability and send them to the affiliate partner, resulting in a net increase in revenues and boosted conversion rates across all customers.
- The bank targeted the people who would convert most likely with a call from the telephone advisory, leading to higher conversion rates and better ROI in the telephone advisory.
Impact
To implement our solution, we carried out a series of A/B tests. The A/B tests proved that our algorithm resulted in 21% more revenue, and 25% more volume in the loan application funnel.
This confirmed our model's success and made the client confident about the performance of the model. This allowed fast integration of the smart routing tool into the banks processes, which was scaled across the entire loan process for all new applicants
While the call center previously randomly called loan applicants to guide them through the process, they now had a data-driven approach to targeting individuals based on their likelihood to convert following a call. This lead to an overall ROI per lead increase of 54%, across call center applicants.
The delivery and integration of the scalable AI solution into the bank's online application funnel enabled real-time decision making for each applicant. The bank started profiting from our smart routing solution after just 2 weeks of publishing our algorithm live.
