Axtria Insights

Axtria Insights

CASE STUDY
Acquisition Decision Optimization for a Leading Credit Card Issuer

Situation

  • A top 5 credit card issuer was faced with low response rates of 0.2%-1.5% for its mail campaigns.
  • Over 66 MM pieces were being dropped per year in over 20 campaigns annually.
  • Acquisition efficiency needed significant improvements

Approach

  • We used advanced analytics to develop models to predict response, risk, approval, spend and spend activation.
  • We also created a decision engine to score population.
  • The universe was segmented along response and risk to optimize for overall response and approval (ORA)

Acquisition Decision Optimization For Credit Card Issuer


Result

  • The decision engine resulted in response and approval rate to jump up by 100%.
  • The acquisition cost per card came down by 66%.
  • The gross margin improved by 80%

Acquisition Decision Optimization For Credit Card Issuer