54% higher ROI through smarter routing.
Fragmented customer journeys holding back conversion rates.
Our client, a large financial services provider, faced challenges with a B2C online product that underperformed in both conversion rates and generated revenues. Customers could proceed through one of three routing channels:
- Online: customers completed applications directly on the client’s platform
- Telephone: Customers received guided assistance via call
- Marketplace: customers were routed to affiliate offering competitive deals.
The lack of strategic routing led to inefficiencies and misses opportunities. The client turned to NewNow to analyse the situation and offer a solution.
Randomized customer routing undermined results.
Before our involvement, our client relied on random calls during the online application process, resulting in low conversion rates and wastes resources. Customers with poor credit scores were automatically redirected to the affiliate marketplace without leveraging their potential value.
Our initial analysis revealed two key areas for improvement:
- Targeted calls: strategic outreach to selected individuals to improve loan application completion rates and increase ROI.
- Optimized affiliate routing: redirecting low-probability purchasers to the affiliate marketplace to generate higher revenues through commissions.
The absence of data-driven routing system limited the client’s ability to maximize channel efficiency and profitability.
Implementing smarter routing with machine learning
To address the challenges, we developed and trained a machine learning model designed to optimize customer routing decisions across all channels. Our approach included:
- Analysing data: we used historical sales data and customer profiles to predict conversion probabilities and ROI for each channel.
- Designing smart routing: our algorithm strategically directed customers to the most suitable channel, ensuring higher efficiency, boosted conversion rate and revenue.
- Seamless integration: the scalable machine learning model was embedded into our client’s product portal, enabling real-time decision-making and automated routing.
This solution transformed our client’s routing process, ensuring smarter and profitable decision.
21% revenue increase and 54% higher ROI through smarter routing
Our A/B tests validateed the success of the smart routing algorithm, achieving a 21% increase in revenue and a 25% growth in the loan application funnel. This performance gave our client the confidence to integrate the solution quickly and scale it across all new applicants.
By shhifting the call center from random outreach to a data-driven approach, our client achieved a 54% higher ROI per lead. The scalable AI model, embedded into the online application funnel, enabled real-time decision making, with the bank profiting from the solution just two weeks after deployment.
