DbM Financial is a leading global investment management firm. Like many financial institutions, DbM Financial’s marketing focus had been on the acquisition of new customers. Unfortunately, the cost of customer acquisition is an investment that is recovered only if customers remain loyal over time. DbM Financial was losing customers as quickly as they were being acquired. Further DbM Financial’s wholesalers, who sell the company’s products to the intermediaries, had no way of identifying which intermediaries were in danger of attriting.
DbM Financial engaged Data Square to develop a solution that would effectively stem attrition and enable asset retention by providing wholesalers with the ability to target brokers with assets at the greatest risk. Data Square’s solution utilized a combination of Attrition Modeling (d2A) and Market Basket Analysis (d2MBA) to devise a cogent retention program. The Attrition Model evaluated brokers’ unique behavioral/attribute profiles and assigned an attrition probability to each. The model was developed using sophisticated statistical methods and our proven and proprietary methodology for variable transformation and selection. The Market Basket Analysis (d2MBA) was conducted to enable the crafting of personalized offers and messaging that were most likely to resonate with the high-risk “leaver” group of brokers identified by the Model.
The solution provided DbM Financial the insight to revitalize $1 billion in at-risk assets and to identify potential asset churners early by establishing asset-attrition triggers to monitor and manage broker performance on a continuous basis.