Insurer triples home insurance cross-sell with predictive analytics

Use Case

Cross-sell prediction

A leading insurance and financial services provider wanted to identify and execute cross-sell opportunities for various insurance types. The marketing and sales teams for auto and home insurance worked with Pecan to improve their cross-selling success.

Industry: Insurance and finance

Company Size: Over $60B in assets

Solution: Predict likelihood of cross-sell among policyholders

Platform Use Case: Cross-sell prediction

3x

higher campaign conversion

10x

improved model performance

2 weeks

to effective vs. 6 months for in-house model

Challenge

Negative customer experience with unfocused upsell campaigns

The sales team was conducting generic upsell campaigns that offered home insurance bundles to current auto policyholders. The traditional outreach approach resulted in low upsell conversion rates, reduced sales representatives’ productivity, and negatively impacted customer experience.

Solution

Tailored, targeted home insurance upsell to maximize conversion

Pecan’s platform ingested all raw historical sales and customer data from the insurer and built a predictive model to identify the customers most likely to purchase home insurance.

The primary end result was tripling of the campaign conversions. But like many instances of upgrading standard BI to predictive analytics, benefits spanned the entire customer journey. Sellers saved time by not having to target accounts unlikely to convert, while customer experience benefited because the team directed campaigns only to those likely to convert.

Results

Tripled conversion rate from 5 to 15%

In only a few hours, Pecan delivered a fully functional model that outperformed a competing model developed by the internal data science team over 6 months. Pecan’s model improved the conversion rate by 3x (from 5% to 15%).

Moreover, Pecan was able to enhance performance even further (up to 10x) by combining the platform’s model with the internally developed model, maximizing impact and demonstrating the power of combining traditional data science with the innovation and automation offered by the Pecan platform.

Contents

It’s time to refine your outreach with customer foresight