The project team worked to collect customer information, extrapolating it from the client’s current customer base. With this information in hand, an exploratory analysis of the data was conducted. This approach enabled the team to identify outliers and determine the most important variables in the data set.

Advanced analytics techniques were performed on the dataset in order to enable the project team to uncover the customer groups. This approach ensured the data, rather than human intervention, determined the number of customer groups as well as the variables on which each group was based. The groups were then profiled, based on demographic and financial characteristics.

The analysis was further enhanced by illustrating how each customer group could be effectively incorporated into the client’s business strategies, and what type of business value each group could potentially generate.

In order to illustrate this, the following analytics techniques were included:

• Distribution analysis of customers relative to:
  • the speed at which loans are paid
  • preferred product per customer
  • group the likelihood of default
• Geospatial analysis was performed on each group, which included external data, to understand not only the current customer distribution by location but also the market potential per province
• Data mining techniques were used to discover relevant insights hidden in the large dataset
• Correlation analysis was used to evaluate how the client’s sales relate to the industry’s relevant Consumer Price Index

By analysing existing data, coupled with external data, the BSG project team was able to assist the client in segmenting its existing customer base more effectively, thus allowing the data to complement its business strategies. Through this segmentation, the client was able to more easily identify opportunities to increase profit through cross- and on-selling of complementary product options. Similarly, the advanced customer analytics provided to the client ensured a better understanding of its customers, which in turn allowed the client to begin a journey towards increased customer-centricity