Handing over car keys from hand to hand

SUCCESS STORY — TOYOTA FINANCIAL SERVICES

Toyota Financial Services — Anticipating contract renewal with machine learning

To move from reactive end-of-contract handling to proactive retention, KPC built a renewal prediction model for TFS, developed and deployed inside Snowflake, with an explainable score for every contract.

KPC key performance indicator
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The impact in numbers

76%

Overall model accuracy

83%

Of non-renewing customers identified

8

Enrichment stages on the study dataset

The impact in numbers

76%

Overall model accuracy

83%

Of non-renewing customers identified

8

Enrichment stages on the study dataset

The impact in numbers

76%

Overall model accuracy

83%

Of non-renewing customers identified

8

Enrichment stages on the study dataset

RESULTS

Three concrete advances for Toyota Financial Services

A reliable model, built around retention

On a test sample the model had never seen: 76% overall accuracy, and 83% of non-renewing customers correctly identified.

Three concrete advances for Toyota Financial Services

The key factors behind the decision, identified

The model confirms that geography and financial terms (rate, deposit) are the main determinants of the renewal decision.

Three concrete advances for Toyota Financial Services

A decision-support tool for the business teams

Every active contract gets a probability of non-renewal and an automatic explanation of the factors behind it.

RESULTS

Three concrete advances for Toyota Financial Services

A reliable model, built around retention

On a test sample the model had never seen: 76% overall accuracy, and 83% of non-renewing customers correctly identified.

Three concrete advances for Toyota Financial Services

The key factors behind the decision, identified

The model confirms that geography and financial terms (rate, deposit) are the main determinants of the renewal decision.

Three concrete advances for Toyota Financial Services

A decision-support tool for the business teams

Every active contract gets a probability of non-renewal and an automatic explanation of the factors behind it.

RESULTS

Three concrete advances for Toyota Financial Services

A reliable model, built around retention

On a test sample the model had never seen: 76% overall accuracy, and 83% of non-renewing customers correctly identified.

Three concrete advances for Toyota Financial Services

The key factors behind the decision, identified

The model confirms that geography and financial terms (rate, deposit) are the main determinants of the renewal decision.

Three concrete advances for Toyota Financial Services

A decision-support tool for the business teams

Every active contract gets a probability of non-renewal and an automatic explanation of the factors behind it.

Handing over car keys from hand to hand

Background & core challenges

Moving from end-of-contract as something that happens to you to proactive retention

Toyota Financial Services France

For TFS, the life cycle of a vehicle financing contract is a key moment in the customer relationship: the decision to renew is a major indicator of loyalty to the brand. Every non-renewal means lost revenue and the risk of the customer moving to a competing brand.

Already running the imagino CDP, TFS wanted to work the data to extract scores from it, starting with renewal.

Predict the renewal of each contract at maturity

Identify the key factors behind the decision

Turn the analysis into recommendations for marketing, sales and customer service

Prioritize retention actions with a risk score

Handing over car keys from hand to hand

Background & core challenges

Moving from end-of-contract as something that happens to you to proactive retention

Toyota Financial Services France

For TFS, the life cycle of a vehicle financing contract is a key moment in the customer relationship: the decision to renew is a major indicator of loyalty to the brand. Every non-renewal means lost revenue and the risk of the customer moving to a competing brand.

Already running the imagino CDP, TFS wanted to work the data to extract scores from it, starting with renewal.

Predict the renewal of each contract at maturity

Identify the key factors behind the decision

Turn the analysis into recommendations for marketing, sales and customer service

Prioritize retention actions with a risk score

Handing over car keys from hand to hand

Background & core challenges

Moving from end-of-contract as something that happens to you to proactive retention

Toyota Financial Services France

For TFS, the life cycle of a vehicle financing contract is a key moment in the customer relationship: the decision to renew is a major indicator of loyalty to the brand. Every non-renewal means lost revenue and the risk of the customer moving to a competing brand.

Already running the imagino CDP, TFS wanted to work the data to extract scores from it, starting with renewal.

Predict the renewal of each contract at maturity

Identify the key factors behind the decision

Turn the analysis into recommendations for marketing, sales and customer service

Prioritize retention actions with a risk score

Our approach

A data science programme in three stages

A structured approach following the CRISP-DM standard, from building the data foundation through to deploying the model in production.

Data science foundation

A study dataset built in Snowflake

Building a study dataset through successive enrichments: contract and vehicle, financial data, customer history and services taken, interactions with customer service and sentiment analysis. Each stage is materialized to guarantee traceability and reproducibility.

Exploration & modeling

A robust XGBoost model, with no data leakage

Exploratory analysis to audit data quality and rule out the traps: information leakage, multicollinearity, the risk of geographic overfitting. Creating business indicators (financial ratios, rate gap against the local market), then an XGBoost model optimized by cross-validation.

Deployment & explainability

An explainable score for every active contract

An automated inference pipeline runs directly inside Snowflake on contracts coming up for maturity. Thanks to SHAP values, every score comes with an explanation of the factors behind it, readable by the business teams.

Our approach

A data science programme in three stages

A structured approach following the CRISP-DM standard, from building the data foundation through to deploying the model in production.

Data science foundation

A study dataset built in Snowflake

Building a study dataset through successive enrichments: contract and vehicle, financial data, customer history and services taken, interactions with customer service and sentiment analysis. Each stage is materialized to guarantee traceability and reproducibility.

Exploration & modeling

A robust XGBoost model, with no data leakage

Exploratory analysis to audit data quality and rule out the traps: information leakage, multicollinearity, the risk of geographic overfitting. Creating business indicators (financial ratios, rate gap against the local market), then an XGBoost model optimized by cross-validation.

Deployment & explainability

An explainable score for every active contract

An automated inference pipeline runs directly inside Snowflake on contracts coming up for maturity. Thanks to SHAP values, every score comes with an explanation of the factors behind it, readable by the business teams.

Our approach

A data science programme in three stages

A structured approach following the CRISP-DM standard, from building the data foundation through to deploying the model in production.

Data science foundation

A study dataset built in Snowflake

Building a study dataset through successive enrichments: contract and vehicle, financial data, customer history and services taken, interactions with customer service and sentiment analysis. Each stage is materialized to guarantee traceability and reproducibility.

Exploration & modeling

A robust XGBoost model, with no data leakage

Exploratory analysis to audit data quality and rule out the traps: information leakage, multicollinearity, the risk of geographic overfitting. Creating business indicators (financial ratios, rate gap against the local market), then an XGBoost model optimized by cross-validation.

Deployment & explainability

An explainable score for every active contract

An automated inference pipeline runs directly inside Snowflake on contracts coming up for maturity. Thanks to SHAP values, every score comes with an explanation of the factors behind it, readable by the business teams.

Our clients

Our clients

They trust us.

They trust us.

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Illustration of performance and growth

A DATA SCIENCE PROJECT IN MIND?

What if you could see your customers leaving before they do?

KPC supports you from building the data foundation through to putting explainable predictive models into production, directly inside your Snowflake platform.

Illustration of performance and growth

A DATA SCIENCE PROJECT IN MIND?

What if you could see your customers leaving before they do?

KPC supports you from building the data foundation through to putting explainable predictive models into production, directly inside your Snowflake platform.

Illustration of performance and growth

A DATA SCIENCE PROJECT IN MIND?

What if you could see your customers leaving before they do?

KPC supports you from building the data foundation through to putting explainable predictive models into production, directly inside your Snowflake platform.