Benefits & Results

Improved customer retention through the evolution of a customer-centric view from a certificate-centric view; Increased operational efficiency and optimized resource allocation; Enhanced long-term customer value fostering a culture of data-driven decision-making

Early detection of monthly client leaks by 71%; 80% accuracy in predicting policies that would leave the company within the next 6 months

Background

The Sancor Seguros Group, based in Sunchales, Argentina, is a leading insurance provider. The company faced challenges in identifying customers likely to churn and implementing targeted retention strategies.

Challenges

Issue Identification: Sancor Seguros struggled with the challenge of identifying customers likely to churn due to the customer information being available at the insurance certificate level. This made it difficult to see an integrated customer-level view when customers held multiple certificates, leading to limited customer insights and effective retention strategies; Issue Impact: High customer churn rates resulted from the absence of a customized churn mitigation strategy stemming from insufficient customer data insights

Solution

NowVertical's Role: NowVertical developed a leakage model with a unique focus on client churn rather than certificate churn. The solution involved creating two models: a certificate leak model to serve as input for training the client leak model

Implementation

Used Logistic Regression for initial insights and Gradient Boosting for enhanced predictive accuracy; Integrated the models into the CRM system for real-time analysis; Enabled the company to proactively identify customers at risk of churn and deploy customized retention strategies within 6 months of certificate expiry