Published on 08-Feb-2012
"“Our primary goal in using IBM Campaign was to migrate from a product-centered business to a customer-centered one. We wanted to provide personal attention to our customers, and offer them truly customized banking solutions, based on their needs. IBM Campaign is giving us the ability to do just that.”" - Senior Manager Marketing Analysis North American Financial Services Provider
North American Financial Services Provider
EMM - Cross-channel Marketing Optimization, Smarter Marketing
This large North American financial services provider has average assets of USD247 billion and more than 33,000 employees.
In the past, this bank outsourced both the management of its campaigns and its database. This approach, with its inflexible structure, limited the bank’s ability to design and execute marketing communications with the timeliness and relevance it desired.
Leveraged IBM Campaign to design, implement, execute and automate marketing activities, and to implement daily event-triggered communications
·Improved customer relations · Increased frequency of campaigns · Achieved USD6 million in balance growth and commensurate profit and reduced customer attrition through a single campaign · Already achieved 100 precent ROI on its IBM Campaign investment
This large North American financial services provider has average assets of USD247 billion and more than 33,000 employees. It provides a broad range of personal and retail banking, wealth management and investment banking products and solutions. The bank has over 1000 branches serving individuals, institutions and large and small businesses.
In the past, this bank outsourced both the management of its campaigns and its database. This approach, with its inflexible structure, limited the bank’s ability to design and execute marketing communications with the timeliness and relevance it desired. Specifically, it wanted to move faster and to have more control over—and access to—its data to build richer, more relevant and more timely customer conversations. This was not possible with its existing system.
After evaluating several solutions, the bank selected the IBM® Unica® Enterprise Marketing Management (EMM) suite to help design, implement, execute and automate its marketing activities. Specifically, the bank chose IBM Campaign, IBM’s best-in-class campaign management application.
One reason the bank chose IBM Campaign was that another division within the bank already had an existing, positive relationship with IBM Unica. Another reason was that IBM Campaign’s process for implementing daily event-triggered communications was easier than any other vendor.
The bank used IBM Campaign to design and implement a series of marketing campaigns to improve communications with its customers. Two examples are highlighted below: the “Priority Lead” and the “Integrated Campaign.”
Priority Lead Campaign
The Priority Lead campaign was a pilot targeted at customers who made deposits significantly larger than their typical deposit. The specific goals were to increase lead quality and volume, engage customers in targeted dialogues, and quickly respond and react to time-sensitive opportunities.
On a daily basis, IBM Campaign looks for individuals who meet the criteria of a “significant deposit” based on pre-defined models that look at investment patterns for the individual over three months. If a customer is identified as one who made a significant deposit, he or she is marked as a lead. The system then leverages business rules and logic to determine the best product offering and communication for each customer. Due to IBM Campaign’s open architecture, the system places the customer’s contact information and proposed offer in a central area that both the Siebel call center and the bank’s homegrown branch application can access. Within 24 hours, a representative from the bank conducts an outbound call with the customer.
Since the national launch of this campaign, the bank has generated an average of USD2000 for each lead identified. As a result, the bank has recouped its investment in IBM Campaign within the first year of this campaign.
The bank’s marketing team designed a campaign to determine the best offer strategy across all products for each customer. The main goals were to create an integrated customer view across initiatives, increase share of wallet by one to five percent, boost cross-sells and, ultimately, product penetration while managing contact fatigue and eliminating offer cannibalization.
To do this, the bank first created a series of models to determine the propensity of specific product purchases. This resulted in a matrix of product solutions by customer. Ultimately, each customer would receive offers for the top three products they qualified for: one product through an outbound call, and then all three products through the Siebel call center if an individual called in and a representative had the opportunity to present the targeted offer.
The company defined the Integrated Campaign within IBM Campaign using a series of suppressions and business rules to determine the three best banking solutions for each customer. More specifically, the bank created two communication strategies within the Integrated Campaign: a proactive and a reactive strategy. The two strategies leveraged more than 40 business rules defined around events such as pre-approval, mature investments, mortgage renewals, and so on. Each event equated to a flowchart within IBM Campaign where rules, models, and logic were used to determine whether an individual was a good target from a business and response likelihood standpoint. The bank used test and control groups so they could measure the lift between those customers that received a targeted offer versus those that did not.
Ultimately, IBM Campaign used one overarching set of arbitration rules to determine, of all the communications an individual qualified for, which three were the best and which were best for the proactive outreach.
The results of the Integrated Campaign were impressive. The company realized a 10 percent profit from contacts over the control group. The Integrated Campaign contributed USD6 million in balance growth and commensurate profit and has reduced customer attrition.
Because of its successful experience with IBM Campaign, the bank plans to roll out the Priority Lead Campaign to its entire retail banking business. All integration will be with the bank’s Siebel call center. It will also move from “prioritizing” integrated campaign events to “optimizing” integrated campaign events. This will help the bank better determine the priority of proposed offers at the customer level rather than as a consolidated bank view. Additionally, the company will be able to use more mathematical algorithms to determine the best communication strategy across channels, products and time, rather than just business rules.
|Web Abstract ( not more than 290 characters with spaces)||This bank wanted to move faster and to have more control over and access to its data to build richer, more relevant and timely customer conversations. It chose IBM Campaign to design and implement a series of marketing campaigns to improve communications with its customers.|
|Key words||IBM Campaign, integrated campaign, integrated marketing, campaign management, personalized marketing, customized marketing, targeted marketing, targeted campaign, personalized campaign, customized campaign, RPO, customer attrition, customer retention, increase revenue,|
Products and services used
IBM products and services that were used in this case study.
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