Effective customer segmentation processes are critical for financial services firms. Many companies have realized that their most valuable customer segment accounts for the overwhelming majority of total customer profitability—while many other segments not only provide very little profit, they represent a loss. A number of customer-centric financial services institutions are even assigning managers to their key customer segments and sharing profit and loss responsibilities with related financial product managers.
First Union Corp.—one of the largest U.S. banks—and consultancy Market Advantage used SPSS predictive analytics to identify new customer segments. This provided First Union executives with the insights needed to restructure the delivery of their services—simultaneously increasing customer value and decreasing delivery costs.
Understanding customer value segments is the first step in any customer strategy for winning profitable customers, growing those relationships, and keeping them longer. SPSS customer segmentation solutions help financial services companies differentiate the value of their customers more accurately using data and business expertise.
Improve your customer segmentation by applying your organizations’ understanding of customers to guide the automated SPSS segmentation process, using all relevant data—including behavioral, demographic, text, Web, and attitudinal data. Accurately segment customers by current and predicted lifetime value using unrivaled segmentation techniques proven over more than 30 years. The more you know about your most and least profitable customers, their purchase patterns, buying behaviors and demographic profiles—the more intimate and profitable your relationships become.
Accurate customer segments are the essential foundation of any customer strategy—helping your organization improve every customer interaction and focus on the areas predicted to generate the highest returns. Combine customer segmentation with predictive modeling of each segments’ lifecycle for the insight needed to acquire, grow, and retain those customers and maximize their value.
Contact SPSS sales to learn how predictive analytics can deliver rapid return on investment for your organization.