Big data and return on marketing investment in a South African insurer
| dc.contributor.author | Grater, Darryl | |
| dc.contributor.supervisor | Beder, Laurence | |
| dc.date.accessioned | 2024-09-26T08:38:56Z | |
| dc.date.available | 2024-09-26T08:38:56Z | |
| dc.date.issued | 2021 | |
| dc.description | A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master of Management | Strategic Marketing, Johannesburg 2021 | |
| dc.description.abstract | The purpose of the study centres around the enablement of the information and knowledge harvested from big data into increasing the return on marketing investment (ROMI). Many financial services providers offer a wide variety of financial products which include life insurance, health insurance, investment products, wellness and short-term insurance – most of these markets are saturated with multiple product providers all competing for share of potential customers’ attention and ultimately share of wallet. Although there are various studies involving the use and interpretation of big data in terms of propensity models and product recommender systems, cross-sell propensity modelling using personalisation based on existing financial products enjoyed by a customer has not been sufficiently or adequately researched - particularly for a short-term insurer within a Southern African context Considering this was a big data study, the research was quantitative whereby 566,758 customer profiles from a South African financial services provider (FSP) were extracted from the FSP’s databases, and thereafter scrutinised. The data was analysed using statistical methods which included Extreme Gradient Boosting to investigate and assess the impact of various existing customer characteristics and the acceptance of a personal lines short-term insurance quote when offered. The study embarked to understand if certain characteristics of existing customers could be identified which indicate materiality to short-term insurance product acceptance, and how one by using this personalisation information can create ring-fenced segments of existing customers for focused insurance product cross-sell campaigns, with better sales results versus standard busines development. Results identified in this research conclude that the theoretical framework supports the results exposed in this study. Certain customer characteristics from their product utilisation from life insurance, health insurance, banking, wellness and investment products indicate traits which are highly material to their conversion rate and short-term insurance product acceptance. By using this personalisation information and creating segments which portray the best conversion rates, focused sales campaigns result in higher sales ratios and therefore marketers and business development executives see better sales conversion rates versus mass-market, broad-based initiatives (for example random blind, cold calling). Sales resources can therefore be deployed to quote short-term insurance products to these customer segments and will render higher sales and thus a higher return on marketing investment. In conclusion, the contribution of this research study enables the financial services industry to focus on cross-sell and upsell campaigns with higher sales performances by using the personalisation insights from their existing customer base. Furthermore, marketers and business development executives can use similar frameworks to develop similar propensity models for other financial products. The research also opens a path for future similar research to be conducted across various other financial products (not only on short-term insurance impact) and across geographies extending further than a South African customer base | |
| dc.description.submitter | MM2024 | |
| dc.faculty | Faculty of Commerce, Law and Management | |
| dc.identifier.citation | Grater, Darryl. (2021). Big data and return on marketing investment in a South African insurer [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/41073 | |
| dc.identifier.uri | https://hdl.handle.net/10539/41073 | |
| dc.language.iso | en | |
| dc.publisher | University of the Witwatersrand, Johannesburg | |
| dc.rights | © 2021 University of the Witwatersrand, Johannesburg. All rights reserved. The copyright in this work vests in the University of the Witwatersrand, Johannesburg. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of University of the Witwatersrand, Johannesburg. | |
| dc.rights.holder | University of the Witwatersrand, Johannesburg | |
| dc.school | WITS Business School | |
| dc.subject | Investment | |
| dc.subject | Big data | |
| dc.subject | Marketing investment (ROMI) | |
| dc.subject | Financial services providers | |
| dc.subject | life insurance | |
| dc.subject | Health insurance | |
| dc.subject | Investment products | |
| dc.subject | Wellness and short-term insurance | |
| dc.subject | UCTD | |
| dc.subject.other | SDG-8: Decent work and economic growth | |
| dc.title | Big data and return on marketing investment in a South African insurer | |
| dc.type | Dissertation |