Standard Life is one of the world's leading mutual financial services companies. Its mutual status is a key factor in its success. This status brings many benefits, the chief one being that there are no shareholders to satisfy, only customers. All the firm's actions are therefore driven by the need to benefit its customers. The Standard Life group includes the Standard Life Assurance Company, Standard Life Bank, Standard Life Healthcare and Standard Life Investments.
Standard Life Bank launched its Freestyle Mortgage product in January 1999 with extensive TV and press advertising campaigns. In recent months a number of similar products have appeared from rival providers and so it is essential that Standard Life Bank can both consolidate and continue to expand its share of the mortgage market. To achieve these aims the company must:
A major part of the project was to develop models that could identify customer characteristics relevant to any mortgage product. Donald MacDonald, customer data analyst at Standard Life further explains, "Our vision was to increase both the speed at which we build our models and the sophistication of those same models. This ultimately leads to improved customer communications as well as greater returns on the bottom line".
With SPSS data mining software, Standard Life can undertake a growing number of projects. With the aid of SPSS, they were able to build a propensity model for the remortgage offer showing the types of clients attracted to this product. This model is easily portable and applicable to other client databases within the Standard Life group.
Using the propensity models, a remortgage mailing campaign was planned and executed by the Customer Data Analysis team in conjunction with Standard Life Bank. The mailing included a randomly selected control cell. The model allowed the bank to focus its efforts on the best prospects for the remortgage product and create scores for each customer. These scores enabled them to achieve more targeted direct mail and to score prospects with similar characteristics accessing the Web site.
Clementine has already paid for itself many times over and will continue to do so for many years to come.
Donald MacDonald, customer data analysis, Standard Life
Overall, Standard Life's data mining enabled it to better understand the characteristics of its mortgage clients so it could more accurately search for potential new clients. Also, the bank now has the capability to profile incoming prospects quickly and personalize their Web experiences accordingly. As a result of its data mining efforts, Standard Life:
Donald MacDonald sums up a highly successful project by explaining, "The effective targeting of our outbound communications achieved through data mining consistently produces significant cost savings for the company. I can honestly say that Clementine has already paid for itself many times over and will continue to do so for many years to come."
The complete list of global SPSS success stories can be found here
“Clementine has
already paid for
itself many times
over and will
continue to do so
for many years to
come.”
- Donald McDonald, Customer
Data Analysis, Standard Life
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