A Case Study from Spain
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What was the challenge?
- After an initial project to improve customers’ lapse rates reactively, we started to work on a solution to reach out to customers at a stage before they expressed desire to lapse.
- There was concern that by contacting policyholders proactively we would end up enticing them to lapse (i.e. „wake them up “).
What was the solution?
- We designed an enhanced communication plan based on behavioural economics that used multiple contact channels.
- Through machine learning, we identified the policyholders that were most likely to lapse in the coming month.
What were the results achieved?
- Up to 50% improvement in lapses (by call) with an average of 20% improvement across all channels.
- Extend the initiative to more customers not just those identified as at risk and vary timing of communication.