ABC Bank Digital Marketing Strategy by utilizing Artificial Intelligence (AI) / unsupervised learning for customer segmentation

Overview

This project provides a detailed analysis and digital marketing strategy for ABC Multistate Bank using customer segmentation. By leveraging unsupervised learning (Artificial Intelligence) techniques, i identified distinct customer segments and developed targeted strategies to enhance customer engagement and retention.

presntation

The work is presented and accessible at the following link: ABC BANK Digital Marketing case study or download via : ABC BANK Digital Marketing case study.pdf

Key Points

• Unsupervised Learning: Utilized clustering algorithms to identify natural groupings within the data.
• Customer Segments:
  • Old Mostly Active Members: Mean age 40
  • Young Mostly Active Members: Mean age 35
  • Old Inactive Members: Mean age 45
  • Young Inactive Members: Mean age 35

Objectives

• Identify distinct customer segments.
• Understand unique characteristics and behaviors.
• Develop targeted marketing strategies.

Analysis

Churn Rates

• All old inactive members have left the bank.
• Some of the old active members have also left, indicating potential retention issues.

Geographic Disparities

• Spain: Active to inactive ratio is approximately 1:1 for all age groups.
• France: Active to inactive ratio is approximately 1:1 for older members.

Credit Card Ownership

• Older generation: 2:1 (having vs. not having)
• Younger generation: 3:1

Income Levels

Inactive members have higher predicted salaries compared to active members.

Recommendations

Targeted Marketing Campaigns

• Develop campaigns to increase activity among older customers.
• Use personalized messaging based on customer demographics and behavior.

Retention Strategies for Older Members

• Implement loyalty programs and personalized communication to retain older active members.
• Address specific needs and concerns of older customers to prevent churn.

Geographically Tailored Strategies

• Investigate inactivity causes in Spain and develop solutions.
• Address challenges faced by older customers in France through targeted surveys and feedback mechanisms.

Product and Service Enhancement

• Enhance appeal of credit cards for the older generation through tailored features and benefits.
• Offer financial education programs to highlight benefits and responsible usage of credit cards.

Engagement of High-Income Inactive Members

• Conduct qualitative research to understand why high-income members are inactive.
• Develop premium services or exclusive offers to entice high-income customers to engage more actively with the bank.

Conclusion

This analysis provides a comprehensive understanding of ABC Multistate Bank's customer segments and highlights key areas for improvement. By addressing the identified issues through targeted marketing and service enhancement strategies, the bank can improve customer engagement and retention, ultimately driving business growth.

Files

• ABC BANK Digital Marketing case study.pdf: The presentation slides summarizing the analysis and recommendations.
• Bank.csv: Contains the data set used for the analysis. retrieved from kaggle
• customer_segmentation_clustering.ipynb: Scripts used for clustering and analysis.

Contact

For more information, visit youssefjedidi.vercel.app. or contact in/youssef-jedidi.