Rabobank

Using predictive analytics to lower costs and generate higher returns on marketing campaigns

Published on 25-Mar-2011

"After a thorough investigation of the analytical solutions in the market, we selected IBM SPSS predictive analytics software for its ease of use for the business users and the extensive insight it provides into customer behavior and profitability. The software generates results rapidly. In addition, the software fits smoothly into our current CRM environment, thus providing a solid, future-proof platform for us to engage with our customers on a personal basis across any channel." - Paul Groenland Project manager, database marketing Rabobank

Customer:
Rabobank

Industry:
Banking, Financial Markets

Deployment country:
Netherlands

Solution:
BA - Business Analytics, BA - Business Intelligence

Overview

Rabobank uses IBM SPSS predictive analytics software to create and execute targeted direct marketing and lead generation campaigns. By combining knowledge obtained from market research and data mining, the Marketing Intelligence department can offer the commercial organization an up-to-date picture of the marketing possibilities within new and existing target groups.

Business need:
The financial services leader wanted to optimize its market and customer information – getting a better picture of individual customers – to create strategic offers for cross-, up- and deep-selling initiatives.

Solution:
Rabobank uses IBM SPSS predictive analytics software to create and execute targeted direct marketing and lead generation campaigns. By combining knowledge obtained from market research and data mining, the financial services provider has an up-to-date picture of the marketing possibilities within new and existing target groups.

Benefits:
• Acquisition, cross-selling and retention campaigns are more accurately targeted – reducing campaign costs and increasing success rates • Rabobank can now determine the best way to approach the customer, considering a customer’s background and preferences, such as being contacted in person by an advisor or via a mailing • Local banks and advisors have access to timely and targeted leads, so they can quickly respond to individual customers’wishes • Marketing initiatives can be launched much faster thanks to user-friendly models – completion time decreased by up to four weeks

Case Study

To read a Dutch version of the story click here.

Rabobank is a cooperative in which all banks of the Rabobank Group, the largest financial services provider in the Netherlands, have combined their forces. Headquartered in Utrecht, Rabobank functions as the general and technical services company of all 328 affiliated Rabobank offices. The organization supports and advises the local banks on strategy, policy, marketing, product development and information technology. In addition, the local banks can offer personalized and complete financial offers to their 7.5 million private and corporate customers via the specialized subsidiaries of Rabobank, such as Interpolis, De Lage Landen and Robeco.

Challenge
Rabobank aims to strengthen its position as a market leader in financial services by further developing and expanding its relationship with its private and corporate customers. Information about and knowledge of each individual customer and market segment is essential for achieving maximum return on customer contacts and marketing efforts. Within the Marketing Intelligence department, a team of database marketers and market analysts continuously strives to optimize the market and customer information to generate qualified leads that will support the local branches in effective cross-, up- and deep-selling initiatives.

In doing so, the emphasis is on combining three kinds of information: information related to planned outbound interactions such as mailings and call center campaigns, “event-driven” customer contacts (based on events that could change customer behavior and needs) and “incoming customer signals” (in which case, the local bank is informed by the central CRM system about possible leads with existing customers). Combining the details of all interaction forms results in a complete picture of the customer, his or her needs, and the best channels to approach him or her with new offers – a truly effective marketing plan.

Solution
Rabobank uses IBM SPSS predictive analytics software to create and execute targeted direct marketing and lead generation campaigns. By combining knowledge obtained from market research and data mining, the Marketing Intelligence department can offer the commercial organization an up-to-date picture of the marketing possibilities within new and existing target groups.

The software enables Rabobank to accurately target its customers and considerably increase the success rate of its actions. Acquisition, cross-selling and retention campaigns are created for various financial products, such as savings, loans, mortgages and investment funds. IBM SPSS predictive analytics software can indicate, for example, the likelihood that a customer who now holds a savings account will also invest in stocks or shares if he or she receives a specific offer to this end. In order to do so, the software analyzes customer events. For example, when a customer transfers a large sum of money to his account, that could be an indication that he or she is interested in an investment product. However, Rabobank must respond quickly; already within a week the customer may have transferred the amount to a competitor. The software enables Rabobank to give a timely response by quickly sending a lead to the responsible financial advisor.

The software also determines the best way to approach the customer, considering his/her background and preferences, such as being contacted in person by an advisor or via a mailing.

Results
Marketing initiatives can be launched much faster thanks to user friendly models. The completion time has decreased, on average, by two to four weeks.

The quality of the leads is higher, so marketing campaigns are much more cost-efficient and effective. In the past, there was usually not enough time to make a model. The current models present more standardized customer profiles.

In addition, Rabobank provides timely and targeted leads, to local banks and advisors, so that they can quickly respond to changes and to individual customers’ wishes.

Rapid start
Every month, the Rabobank Group initiates two to three large marketing campaigns and tens of sub-campaigns for private and corporate customers. In addition, five large seasonal campaigns are launched each year. To ensure that actions can be set up and carried out quickly, predictive models have been developed using IBM SPSS software, which automatically link the right target groups to the most suitable channels and result in a highly effective selection. The software enables marketers to deploy these predictive models immediately, without having to perform complex analyses over and over again.

“Because of the many actions, we must process huge quantities of data. Previously, our marketers spent a great deal of time making the right selections,” said Paul Groenland, project manager, database marketing at Rabobank. “As we have now developed our marketing environment on the basis of fixed models, our marketers can concentrate on the more complex marketing issues, while still being certain that their mailings will be targeted at the right people.”

High quality leads
“Eventually, as a financial services provider, we aim to have more frequent customer interactions, though we will only focus on those actions that really meet the customer’s needs, ” added Groenland. “Optimizing the profitability of our interactions with private and corporate customers is key for the future development of the group. By synchronizing customer data with the analytical environment in real time, the result is high-quality and up-to-date information serving as the basis for marketing actions. The offices are informed on a daily basis which customer should be approached with which offer and via which channel. As a result, marketing initiatives will become much more profitable and costs can be reduced significantly.

“The productivity of our marketing efforts has gone up considerably thanks to the IBM SPSS platform, because we are now in a position to continuously ensure the correct implementation of our marketing activities, both for private and corporate customers,” concluded Groenland.

About IBM Business Analytics
IBM Business Analytics software delivers complete, consistent and accurate information that decision-makers trust to improve business performance. A comprehensive portfolio of business intelligence, predictive analytics, financial performance and strategy management, and analytic applications provides clear, immediate and actionable insights into current performance and the ability to predict future outcomes. Combined with rich industry solutions, proven practices and professional services, organizations of every size can drive the highest productivity, confidently automate decisions and deliver better results.

As part of this portfolio, IBM SPSS Predictive Analytics software helps organizations predict future events and proactively act upon that insight to drive better business outcomes. Commercial, government and academic customers worldwide rely on IBM SPSS technology as a competitive advantage in attracting, retaining and growing customers, while reducing fraud and mitigating risk. By incorporating IBM SPSS software into their daily operations, organizations become predictive enterprises – able to direct and automate decisions to meet business goals and achieve measurable competitive advantage. For further information or to reach a representative visit www.ibm.com/spss.

Products and services used

IBM products and services that were used in this case study.

Software:
SPSS Modeler, SPSS Statistics Professional

Legal Information

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