Case Study – Union Investment GmbH
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Union Investment GmbH
Predictive analytics used to fine-tune market segmentation and drive higher sales
Based in Frankfurt, Germany, Union Investment GmbH is one of Europe’s leading asset managers for both private and institutional investors, providing a wide range of investment solutions in various asset classes and investment styles. Founded in 1956, the company employs approximately 2,500 people and manages assets worth more than EUR200 billion.
Selling mutual funds and other investment options requires a keen understanding of the unique financial needs of the customer. Union Investment’s sales agents relied on gut instincts rather than facts in their sales strategies. To increase sales and reduce churn, the company required a deeper knowledge of the lifestyle nuances influencing customers’ financial decisions.
An advanced analytics solution provides detailed insight into the company’s diverse customer base, combining sales data with social media information to identify characteristics such as location, marital status, and cultural background that affect financial decisions. Assessments of market segments recognize patterns that influence each customer’s unique needs, their affinity toward certain finance products and their investment behavior. This insight at the individual customer level allows the company to improve sales through qualified high-potential leads for new business while reducing churn of existing customers.
Using this solution, Union Investment has identified 300 – 1,000 characteristics per customer that contribute to the decision of whether to purchase mutual funds and other investments, 10 times more than the previous solution. By better understanding the characteristics of specific customer segments, Union Investment has increased sales of mutual funds through direct sales agents
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