Business Case
Business Rules Engine for Customer Management assessed to deliver potentially 700% ROI in five years
Business Challenge
The client operates in a highly competitive market which has experienced significant growth. With a number of large operators in the market the competition for new customers is intense and margins have been squeezed as acquisition costs rise.
To realise the potential of the existing account base, the client knew it needed to enhance its systems and processes in order to implement the most effective customer management strategies.
It recognised that the existing
systems limited its ability to use
data effectively for customer insight,
and it did not have the flexibility to
quickly develop and implement new
customer management strategies.
The Decision Analytics answer
The last 25 years have seen the gradual introduction of sophisticated BusinessRules Engine (BRE) technologies into global Financial Services organisations.
BREs have a long record of giving business value by delivering the capability to deploy complex credit risk management business strategies, which leverage sophisticated decision analytics, into the business user’s hands (typically via a Windows-based Graphical User Interface).
The client selected Experian to participate in a Business Review to prepare a detailed business case, or Return on Investment (ROI) model, to establish the opportunities for delivering value to the business by deploying an industry-leading Business Rules Engine (BRE).
The Benefits
- ROI achieved in the first year of deployment
- ROI for 5 years was assessed as 700% of total solution cost
- Increased revenue from deployment of advanced account level and customer level limit management capabilities
- Reduced bad debt from enhanced Limit Management of high risk customers
- Higher numbers of authorised transactions using on-line transaction authorisation control, leading to improvements in revenue from lower risk customers and reductions in bad debt on higher risk customers
- Reduced losses through deployment of collections scorecards, enhanced strategy segmentation and more effective collections actions
- Improved revenue from re-pricing customer accounts according to risk and profitability drivers