Refining a Prospecting Target

Challenge: The company wanted to pursue the middle-income market, but had very little idea how to identify the more productive sub-groups within that market. At this time they were using Claritas, a vendor which provided inefficient, block-level data.

Actions: Utilized a data warehouse to identify profitability and potential of company's clients, creating gold, silver, and bronze segments. Further segmented customers by lapse probability. Used customer profiles to identify optimal prospects. Created systems to communicate this data to the distribution channels, and developed marketing and retention programs to take advantage of differences between these segments.

Results: Company was able to customize sales and relationship-building activity to the profitability and potential of individual households, greatly increasing the efficiency of prospecting, retention, and marketing efforts. Eliminated need for $200,000 annual vendor expense in the process.