Theory-Guided Analytics Process: Using Theories to Underpin an Analytics Process for New Banking Product Development Using Segmentation-Based Marketing Analytics Leveraging on Marketing Intelligence

Retail banking is undergoing considerable product competitiveness and disruptions. New product development is necessary to tackle such challenges and reinvigorate product lines. This study presents an instrumental real-life banking case study, where marketing analytics was utilized to drive a product differentiation strategy. In particular, the study applied unsupervised machine learning techniques of link analysis, latent class analysis, and association analysis to undertake behavioral-based market segmentation, in view of attaining a profitable competitive advantage. To underpin the product development process with well grounded theoretical framing, this study asked the research question: “How may we establish a theory-driven approach for an analytics-driven process?” Findings of this study include a theoretical conceptual framework that underpinned the end-to-end segmentation-driven new product development process, backed by the empirical literature. The study hopes to provide: (i) for managerial practitioners, the use of case-based reasoning for practice-oriented new product development design, planning, and diagnosis efforts, and (ii) for researchers, the potentiality to test of the validity and robustness of an analytical-driven NPD process. The study also hopes to drive a wider research interest that studies the theory-driven approach for analytics-driven processes.