Marketing Optimization in Retail Banking

Ramasubramanian Sundararajan (), Tarun Bhaskar (), Abhinanda Sarkar (), Sridhar Dasaratha (), Debasis Bal (), Jayanth K. Marasanapalle (), Beata Zmudzka () and Karolina Bak ()
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Ramasubramanian Sundararajan: GE Global Research, Bangalore 560 066, India
Tarun Bhaskar: GE Global Research, Bangalore 560 066, India
Abhinanda Sarkar: GE Global Research, Bangalore 560 066, India
Sridhar Dasaratha: GE Global Research, Bangalore 560 066, India
Debasis Bal: GE Global Research, Bangalore 560 066, India
Jayanth K. Marasanapalle: GE Global Research, Bangalore 560 066, India
Beata Zmudzka: Bank BPH, GE Capital, 80-387 Gdansk, Poland
Karolina Bak: Bank BPH, GE Capital, 80-387 Gdansk, Poland

Interfaces, 2011, vol. 41, issue 5, 485-505

Abstract: In this paper, we address the problem of making optimal product offers to customers of a retail bank by using techniques including Markov chains, genetic algorithms, mathematical programming, and design of experiments. Our challenges were large problem size, uncertainty about estimates of customer responses to product offers, and practical issues in training and implementation. The solution had an estimated financial impact of around $20 million; it also provided other intangible benefits, including structured decision making, the capability of performing what-if analysis, and portability to other markets and portfolios.

Keywords: marketing optimization; retail banking; customer relationship management; mathematical programming; genetic algorithm; Markov chains; fuzzy mathematical programming (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:41:y:2011:i:5:p:485-505

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