Boosting a financial services client’s revenue by 20% with our omnichannel routing solution
Combating decreasing margins and a low lead-to-sales conversion rate for online customers, we transformed the way in which customers are directed through their purchasing journey. Omnichannel optimization & lead management matters
Authors: Petros Polychronis, Callum Parker, Miranda Zachopoulou
Situation
Our financial services client had a B2C online product that could be bought by retail customers through an online journey, but also through telephone advisory or in an affiliated marketplace. The client found that convergence rates as well as generated revenues were far below expectations. Wishing to investigate whether any improvements could be made, the client hired NEWNOW to conduct a preliminary analysis and suggest potential solutions
Customers enter the online product portal by first providing their financial background information (e.g., credit score, salary etc.) to the client’s system. Based on the customer’s information, the system estimates a conversion probability score and reroutes the customer to one of three channels to complete their application:
a) the online channel, where the customer remains within the client’s system and is expected to complete the application there;
b) the telephone advisory, where the customer receives a call to get guided instructions on how to purchase the product;
c) an affiliated marketplace where the customer can potentially receive product offers with more favorable terms, and where the client earns commissions from signed deals.
Before our involvement, the client would call customers in the process at random, whilst those with too low a probability of conversion would be rejected from the process and sent to the marketplace. Our initial analysis deemed this ineffective, and we found an opportunity to support the client by optimising their omnichannel routing.
Firstly, we found that the telephone advisory could be used more tactically to target calls to specific individuals, rather than randomly calling customers. Secondly, we found the client could increase revenues by sending more customers with a low probability of purchasing the product to the marketplace, and generate revenue via commissions.
Solution
We constructed a ML model that learns which customer segments convert best via which channel and customer journey. Our AI model takes into account conversion likelihood & ROI by channel and sends customers on the optimal journey e.g. suggesting that they talk to an agent on the phone instead of completing the product purchase online only. We delivered and integrated our scalable AI solution into the client’s product portal to enable real-time, automated decision making for each customer.
Business impact
From start to finish, the project took us 3 months. The client started benefiting from our omnichannel routing solution after just 2 weeks of publishing our algorithm live.
We carried out a series of A/B tests which confirmed our model’s success and gave the client great confidence in our solution. This meant they committed early on to integrating the omnichannel routing tool into their processes to boost ROI, and scaling it across the entire product portal to all new customers. The A/B tests proved that our algorithm resulted in
20% more revenue!
Sound interesting? We can help your business make smarter and faster decisions. Reach out to us at info@newnow.group and let’s get started!