BI - Session 7

In-class activity – Campaign management

MXT wallet, an upcoming payment wallet in USA is planning to launch a campaign.
The campaign will last 3 months, where up to a million people can be targeted. It
would cost MXT ~ $2 to advertise to a lead. As such, a budget of $ 200000 has been
allocated to the campaign. Its expected that the campaign will see a conversion
rate of ~ 1%.
You have been hired as an external consultant by MXT to help increase conversion
rate and / or bring down costs. Please help MXT with the following:
a) In the absence of previous data (MXT is a new firm), can analytics be employed
by MXT?
b) If yes, how? If no, how should the leads be identified?

CLTV: $220
 In-class activity – Vehicle insurance
Vaidehi is the newly appointed head of General Insurance department of Dravya
Bank. She is unhappy with the current vehicle loan policy of Bank, where the policy
premium is determined based on broad parameters like age, educational
qualification and city. She believes that the premium should be more personalized,
which not only would help manage risk better, but also lead to a greater customer
delight. In other words, she wants to have a policy where a higher insurance
premium would be charged for accident-prone drivers and vice-versa, and a lower
premium for safe drivers. She has hired you as a consultant to help her in this
regard, and asked you for advice on the following:
a) Can the data available with Dravya Bank about the customers be used to solve
the problem?
b) If yes, how? If no, then what is the solution?