Transitioning from a Product-Centric Approach to a Customer-Centric Strategy Using CLV Segmentation

The context

Generali, a major player in the insurance industry, places a high value on customer relationships and personal connection through its network of agents. However, faced with limited agent time and a desire to enhance customer engagement, the insurer identified a critical need: to shift from a product-centric approach to a Data-Driven, Customer-Centric Approach.

Three main objectives have been defined within the framework of this program:

Actively work on multi-device customer engagement,
Look for ways to boost productivity, particularly by improving the performance and conversion rates of marketing campaigns,
Evolve the customer relationship model by distinguishing between customers with a short-term growth potential and inactive customers who require reactivation programs.

The solution

To address this challenge, Numberly proposed a Customer Lifetime Value (CLV) segmentation strategy. Unlike traditional segmentation based on historical data, CLV is a predictive approach that estimates a customer’s future value to the company. This method was chosen because it allows to:

Prioritise targets for maximum marketing impact;
Assign each segment a value level, an action plan, and development goals;
Facilitate adoption by the network through segments with clear marketing definitions.

The methodology developed by Numberly was based on four key pillars:

Data Access: Data processing is performed directly within Generali’s ecosystem to ensure agility and full GDPR compliance. No sensitive data left Generali’s infrastructure;
Extrapolation and descriptive analysis: processing of certain raw data (e.g., location, area) to estimate the potential standard of living. Analysis of multi-subscription patterns by age and tenure;
Predictive modelling: use of decision trees. Development of five separate models (one per product family), which were then streamlined to create a single, robust model, resulting in the eight final segments;
Recommendations and Implementation: Providing detailed segment profiles (characteristics, key metrics, challenges) to make the segmentation immediately actionable by marketing teams.

Implementing CLV segmentation marks a shift in Generali’s approach, moving from a product-centric model to a strategy based on future customer value. This change has a threefold positive impact on the company. The success of the project hinges on obtaining actionable segments immediately and optimising marketing and sales efforts. An iterative co-creation process with Numberly and strict test protocols facilitated team buy-in.

distinct and immediately actionable segments

39%

of clients represent more than 60% of future multi-device users

3x more

conversion potential separates the best segments from the lowest-performing ones.