To design a comprehensive model to categorize the customers according to demographic perspective to assess their financial services requirements.

1. CUSTOMER PROFILING FOR
RURAL FINANCIAL SERVICES
Presented by :
Maruthi Nataraj
Sudhanshu Ranjan
Santosh Koppada
Madhumita Ghosh
Rohit Kumar
Ayan Das

2. AGENDA
• INTRODUCTION
• DATA DESCRIPTION & PREPARATION
• METHODOLOGY
• ANALYSIS & INFERENCES
• RECOMMENDATION

3. INTRODUCTION
We, SSRM consultants were approached by leading financial
company that required profiling of customers in rural and
semi-urban areas to identify their target market for extending
loans and also to design marketing strategies to achieve other
key benefits to the organization.
Objective:
To design a comprehensive model to categorize the
customers according to demographic perspective to assess
their financial services requirements.
Customer
Profiling
Targeting
Positioning

4. DATA DESCRIPTION & PREPARATION
Data Description:
 Dataset contains 1917 responses taken from respondents residing in rural
and semi-urban areas spread across pan India
 490 attributes, both numerical and categorical attributes
 No missing values
Preparation:
 All the respondent data who have not answered(6) a single question were removed
 All the no responses(6) at attribute level were replaced by respective mode
 All the neutral responses at respondent level were removed
 For Cluster analysis we have used total 16 variable(Q38- Q53) with 1816 responses
Tools Used:
SPSS, MS Excel 2013

5. METHODOLOGY
• We have used cluster analysis for customer profiling.
• Two cluster have been formed as per customer preferences
like loan repayment, loan availed, banks visited, etc.
Sl. No. Mean
Std.
Deviation
Q38 3.504 1.0964
Q39 3.453 .9936
Q40 3.651 .9599
Q41 3.195 1.0268
Q42 2.765 1.0909
Q43 3.067 1.0725
Q44 3.463 .9305
Q45 3.813 .8425
Q46 3.539 .8812
Q47 3.485 .9174
Q48 3.604 .9284
Q49 3.433 .9897
Q50 3.775 .7564
Q51 3.758 .7873
Q52 3.640 .8951
Q53 3.797 .8806
Low
Income
Clusters
Agriculture
More
Educated
Working
Professional

6. ANALYSIS & INFERENCES
0%
5%
10%
15%
20%
25%
30%
35%
40%
East North South West
Percentage
Zone
Respondent Location
Segment 1 Segment 2

7. ANALYSIS & INFERENCES
0% 5% 10% 15% 20% 25% 30% 35%
Class 4 – Class 9
Graduate / Post graduate (General - BA, MA, B.Sc. etc.)
Graduate / Post graduate (Professional – B.E, B. Tech, M.B.B.S, etc.)
HSC+, but not graduate (Diploma etc.)
Illiterate
Literate, but no formal education
Not answered
SSC/HSC
Up to Class 4
Education
Segment 2 Segment 1

8. ANALYSIS & INFERENCES
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
18 to 25
yrs
26 to 25
yrs
36 to 45
yrs
46 to 55
yrs
56 to 65
yrs
66 and
above yrs
Percentage
Age Group
Respondent Age
Segment 1 Segment 2
0%
5%
10%
15%
20%
25%
Salary Tuition income
etc
Agriculture
income
Rental income
(shop etc.)
Percentage
Source
Repay Loan sources
Segment 1 Segment 2

9. ANALYSIS & INFERENCES
0% 5% 10% 15% 20% 25% 30%
Bz/Ind <10 Emp
Bz/Ind >10 Emp
Bz/Ind 0 Emp
Clerk / Salesman
Officer / Executive – Jr
Officer / Executive – Mid/Sr
Self Employed Professional
Shop Owner
Skilled manual worker
Small trader
Supervisor
Unskilled manual worker
Respondent Occupation
Segment 2 Segment 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Single
instalment
(end)
Weekly
instalment
Monthly
instalment /
EMI
Yearly
instalment
Percentage
Repay Option
Repay loan options
Segment 1 Segment 2
City Segment 1 City Segment 2
Aligarh 61 Chennai 65
Gorakhpur 54 Indore 47
Siliguri 50 Kolkata 36
Durgapur 35 Jaipur 27
Vijayawada 31 Trichy 24

10. ANALYSIS & INFERENCES
0% 20% 40% 60%
Television ads
Newspaper ads
Agents
Television ads Newspaper ads Agents
Segment 2 12.49% 8.97% 44.04%
Segment 1 9.84% 9.84% 49.95%
Information about Loans
0.00%
2.00%
4.00%
6.00%
8.00%
House
Segment 1 4.71%
Segment 2 7.59%
Property mortgaged to get Loan
0%
1%
2%
3%
4%
5%
6%
7%
8%
Crop Loan Education
Loan
Housing
Loan
Segment 1 6.63% 0.11% 5.13%
Segment 2 4.54% 0.57% 7.72%
Type of Loan requirement

11. ANALYSIS & INFERENCES
0% 5% 10% 15%
Agriculture purpose
New business /shop
setup
Construction or
purchase of house
Agriculture
purpose
New business
/shop setup
Construction or
purchase of
house
Segment 2 9.99% 7.95% 11.01%
Segment 1 13.05% 12.19% 8.98%
Immediate requirement of Loan
0%
5%
10%
15%
20%
25%
30%
Loan Amount (INR) willing to avail
Segment 1 Segment 2

12. Segment 1 mainly deals with agricultural activities and could be targeted for crop loans, gold
loans, livestock loans etc.
 As it includes low salaried employees like manual workers, self employed professionals, junior
level employees, we can make them use of the banking resources by creating more awareness.
 As the television viewership is low among them other media like local
newspapers, banners/hoardings etc. should be used. Campaigns can also contribute in people-
turn up to banks.
 Since the repayment is dependent on agricultural income to certain extent, suitable time period is
to be fixed taking crop seasons into consideration.
Segment 2 focuses on people who relate to personal activities like construction of house, mortgaging
property for regular pension etc.
 They can be targeted with high ticket loans such as a housing loan, mortgage loan etc. and proper
appraisal has to be carried out by checking their CIBIL score etc. in order to avoid the defaults.
 At the same time, they need a quality service from the staff which is an important area to be taken
care of.
RECOMMENDATIONS

13. THANK YOU