Retention and Marketing Analysis Case Study: Using MAP AVM to empower customer services teams

Client’s Challenge

  • This midsized commercial bank client uses various tools to help identify retention and marketing opportunities in the bank’s mortgage portfolio.
  • Competition for borrowers in their footprint is strong so they needed to increase the ROI on marketing opportunities.
  • Identifying quality retention candidates is critical to proactively maintaining relationships with existing customers.

Our Solution

  • We worked with business owners to identify appropriate use cases for the automated valuations for both retention and purchaseactivity modeling
  • We integrated the MarketAssessed Price (MAP) AVM directly into the retention call center webbased applications to provide instant access to customer service teams of potential valuations
  • We interfaced valuation feeds with client NPV models
  • We provided bulk feeds into their modeling environment to help calibrate their models.
  • We helped create scorecards for clients to monitor and track the performance of the retention and solicitation process
  • We helped client build, test, and document statistical model components used in assessing customer performance and risk profile. Assessed the robustness, accuracy and significance of the model results by executing various statistical tests and advised client on mitigation techniques where the model failed certain criteria.
  • We produced technical model documentation and user guide in a wellstructured document which follows regulator guidance.

Outcome

  • Client increased retention rates for current borrowers and solicitation rates for prospective customers
  • Client was able to provide customer services teams with realtime valuations used while in contact with potential clients.
  • With the help of MAP, significant improvements to model execution and run time over legacy process were made without material loss in accuracy.
  • A transparent process was implemented which improved model performance monitoring and business understanding of forecasting process.