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Driving Growth with Marketing Analytics
Jill Enabnit
U.S. Bank
“How can analytics influence
customer satisfaction?”
“Which marketing programs
ring the cash register –
and how do we find
more like that?”
“What are we doing about
this Big Data thing?”
Questions and answers…….
are becoming more
COMPLEX
ProfitabiliyMatrix
Retention
RegulatoryImpacts
OpenSource
NetLiftModeling
Geogra
phic
Assessm
ents
DesignofExperiments
BigDataPlanning
Triggers
K-M
ea
nsF
acto
r
StructuredSemi-StructuredAndUnstructuredData
IncrementalRevenue
ProcessImprovements
NextBestActionR
eactiveO
pport
unitie
s
NewDataSources
RealTime
SelfServiceReporting
CFPB
LogisticRegression
Clickstream
PathingAnalysis
ClientAdvocacy
DataGovernanceControls
DataModeling
LifeEvents
Solutions
Search&Display
Tra
nsactionA
naly
sis
ServiceToSales
MarketingMixOptimization
Segm
enta
tion
CustomerExperienceFocus
Om
niC
ha
nn
elS
trate
gy
ReturnOnInvestment
IncentivePlanning
$$$
RiskTolerance
Hadoop
OrganicGrowth
Behavioral Economics
Where to begin?
III.Is this the rightchoice for the
enterprise?
II.Have we provided
incrementalrevenue?
I.How does itimpact ourcustomers?
Identify simple tenets
Single View of the Customer
LifeEvents
ChannelUsage
CreditRisk
Segments
ServiceInteractions
BalanceDrivers
MarketingHistory
Note: Sample data fields
ClickstreamPatterns
TransactionBehaviors
Leveraging customer data for many uses
RetentionTactics
TreatmentStrategies
MarketingActions
Measures& Metrics
CapitalAllocation
Conversational Data
Next product to market?
Out of pattern transactions?
Activate or deepen relationship?
Approve this loan?
Pay this overdraft?
Authorize this transaction?
Likely to attrite?
Appropriate concessions?
Meaningful potential?
Marketing Analytics Data
Expand or contract?
Need a new branch?
Channel investments?
Increasing return?
Champion or challenger?
Met strategic objectives?
Analytics actively shape the U.S. Bank Customer Experience
“Conversational Data” about customers’
financial objectives & existing relationships
Prioritized offers and consistent treatment
for each customer
Behavioral InsightsMining up to 17
million transactions each day to identify
out-of-pattern behaviors that may
signal needs
Predictive AnalyticsEvaluating customer
value, purchase propensity and
future potential for over 17 million
customers
Relationship Strategies
Converting insights into decisions and
guidance passed to customer facing
employees & systems
Teller Pops24-Hour Banking
ATMs Internet Banking MobileDirect Mail
Branches Specialized Sales
Blending marketing analytics with needs-based
sales processes allows bankers to provide
better solutions to customers
The Andersons
Model Score: 248
LiSA Segment:“Kids First”
Need:Reduce Debt Service
Mr. Anderson, I’d liketo show you how we can
use a home equity loan to reduce your monthly
payments.
“Conversational Data” allows us to tailor theproduct benefits and
selling process
Michael M.
Model Score: 249
LiSA Segment:“Upscale Investor”
Need:Smooth Cash Flow
Michael, since nearly half of your income comes from bonuses, a home
equity line could improve your cash flow.
Banker
I.How does it impact ourcustomers?
II.Have we provided
incrementalrevenue?
III.Is this the rightchoice for the
enterprise?
Or a resurgence?
Continuous improvement to increase confidence
Deepen Defend
Improve Build
CreateHypothesis
DesignTests
ObserveBehavior
MeasureResults
StrategicFramework
Champion/ChallengerTest & Learn
PerformancePeriod
Evaluation
Branch Trade Area Profile MAIN STREET OFFICE Branch Manager: John Smith
101 Main St. NE Parent Market: Minneapolis-St. Paul-Bloomington, MN-WI
Minneapolis, MN 55413 * Assume branch trade area radius of 1.50 miles
Competitor Information & Market Share As of June 30, 2009
Top Competitors USB Market Share
Rank Deposits ($M) Branches
1. Wells Fargo
2. U.S. Bank
3. Ameriprise
4. Marshall & Ilsley
5. TCF Financial
All Other
Total Trade Area
Branch Type Avg. Deposits/Branch ($M) Deposit Growth/Yr. (2003-08)
< Traditional < In-Store < Branch Trade Area Overall Bank Institution < Branch Trade Area Parent Market
Market Demographics
Age of Population Income Race/Ethnicity
Per Capita & Household ($K)
< Branch Trade Area Parent Market < Per Capita < Household < Branch Trade Area Parent Market
Market Analytics & Performance Solutions Page 1 of 3U.S. BANK CONFIDENTIAL - NOT FOR DISTRIBUTION
Diversity Index
(Baseline=100)
Branch
Trade Area
Parent
Market
115 81
Median Age
(Years)
Branch
Trade Area
Parent
Market
31.2 35.8
Growth/Year
(2008-13P)
Branch
Trade Area
Parent
Market
6.0% 3.7%
4
24
43
7
4
1
3$946
$437
$1,281
$19,467
$10,719
$4,704
$1,380
6
21
3 3
1
21
WF USB AMER M&I TCF
$1,531
$1,176
$1,380
$315
$109
WF USB AMER M&I TCF
6.1%
(1.3%)
0.0%
44.7%
81.2%
WF USB AMER M&I TCF
Deposits Branches
24%
8%
Branch Trade Area Parent Market
9% 5%
Branch Trade Area Parent Market
12.1%
21.1%
24.8%
14.5%
11.0%
7.5%
6.8%
2.2%
0-14 Yrs.
15-24 Yrs.
25-34 Yrs.
35-44 Yrs.
45-54 Yrs.
55-64 Yrs.
65-84 Yrs.
85+ Yrs.
$31.4
$36.6$36.8
$73.7
Branch Trade Area Parent Market
50.0%
26.0%
12.0%
7.0%
0.1%
2.0%
6.1%
5.0%
White
Black
Hispanic/Latino
Asian
Hawaiian/
Pacific Islander
Indian/Alaskan
Other
2+ Races
Upgrade treatment strategy and create new hypotheses
Build the right competencies
- Response vs Net Lift
- Triggers with models
- New data sources (Big
& Small)
- Design of Experiments
- Channel Optimization
- Marketing Mix
Be willing to test
something different
Not one „Holy Grail‟ answer!
And now it's time to
S.T.A.R.T. your journeySavings Today And Rewards Tomorrow……and
understand the
enterprise
impact
III.Is this the rightchoice for the
enterprise?
II.Have we provided
incrementalrevenue?
I.How does it impact ourcustomers?
M A P S F E S T 2 0 1 2
M A P S F E S T 2 0 1 2
Value can differ significantly across
campaigns
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Alerts
Balance
Product
$420
Campaigns by Number of Contacts and Average Value/Contact
Logarithmic Scale
Average Monthly Contacts
Ave
rage
Val
ue
pe
r C
on
tact
s
A penny is a penny…..new or not
Is the juice worth the squeeze?
Building incremental revenue one bps at a time…..
Understanding the enterprise impact of marketing
III.Is this the rightchoice for the
enterprise?
II.Have we provided
incrementalrevenue?
I.How does itimpact ourcustomers?