HOW WE DID THE INVESTIGATIONS

The Sad Case ofStagnoBank – Part 2

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Prelude – Part 2

This deck accompanies the Sad Case of StagnoBank - Part 2 Videoat http://youtu.be/gd3397mfirQ

You find this case by searching with keywords “BSI” “Teradata” “Case” and “StagnoBank”.

This deck is designed to answer questions about the Teradata technologies shown in the story.

For best effect, run it in Powerpoint animation mode.

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Note from the Investigators

Hi Everybody,

We’re the brains behind the scenes and wanted to answer your questions about “how did you do the StagnoBank brainstorming so fast?”

This write-up will give you an idea of our clients’ architecture and some details of the BI screens.

Take a look, and if you still have questions, send them to us at the www.bsi-teradata.com FB page!

Yours truly,

Mercedes Marple and Jodice Blinco

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Scene Synopsis

• Jodice’s Office at BSI HQ – Simon explains the situation, shows Jodice KPIs and reports, and commissions the work

• Jodice kicks off the Project with Max, Mercedes, and Mathieu

4 Weeks Later

• BSI Conference Room – readout of ideas for Better Marketing (Max), Better Customer Service (Mercedes), and Mobile Apps (Matt)

• This deck show’s Mercedes’ work – Part 2• See also Part 1 for Max’s ideas, and Part 3 for Matt’s

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Jodice Assigned Mercedes the Area of Better Customer Service

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• Major European bank, established in the 1800s

• Major player up until 1960s when it fell out of favor with some consumers. Rebounded in the 1970s-1990s but now is again perceived as “old”, “stodgy”, “for older people”.

• As a consequence, growth has stalled or shrunk in many of the Lines of Business. Commercial banking is the best division, consumer banking the worst.

• With some new management, they have now invested in Teradata but have not yet started getting all the benefits they could. StagnoBank is intrigued, but does not yet understand, Aprimo and Teradata Aster technologies.

• New CMO, wants to shake things up!

A Little Background about StagnoBank

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Mercedes Initial Findings: Poor Customer Service

• Mercedes’ interviews and the data show that StagnoBank has been shunting even high-value customers to de-personalized channels, and when people do come in to a branch or call the care center, they aren’t served that well:> long waits > lots of handoffs > repeated requests for the same information

• And when customers do get through, the customer service agent doesn’t know enough context about the customer and what they’re trying to do. Plus usually the customer service agent doesn’t know much at all about the customer’s relationship with the bank. All can be fixed!

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Mercedes Runs BI on Contact Center Data Study: Wait and Talk Times with Agents

• Times are getting worse – average Call is 10+ minutes, of which Queue Wait Time is 6+ minutes. Overall trend is bad:

Average Call Duration, in Minutes

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Contact Center – Call Drop Analysis

• And…you don’t even see 22% of the calls, because people drop off before getting to the agent!

% of Calls Dropped, by Stage of Call

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Mercedes Drills Into A Typical Reason for Account Closure

• People get really angry with extra fees, and call in after they get statements to ask for a Fee Reversal. For many, that’s the last straw leading into Account Closure.

• To understand this, Mercedes used Aster Golden Path analysis for ATTRITION, instead of Marketing Product ACQUISITION (like Max did in Part 1), and saw that people touch many channels of the bank before they cancel Stagnobank accounts because of fee charges

• What she finds is that there are several paths which lead to Account Closure and frankly it is difficult for her to discern from all these paths which are the important paths that she should focus on.

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Paths Showing All Events Preceding Account Closure

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Mercedes Drills Into Top 10 Reasons for Account Closure

• Of the several paths that lead to account closure, Mercedes focuses on the paths containing the top 10 events.

• She does this by iterating through the previous Golden Path Analysis in the Teradata Aster platform, this time by narrowing the event types.

• This reveals a much more understandable set of patterns – which are the most frequently occurring before Account Closure.

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Top 10 Events Preceding Account Closure

SELECT * FROM npath ( ON ( SELECT … WHERE u.event_description IN ( SELECT aper.event FROM attrition_paths_event_rank aper ORDER BY aper.count DESC LIMIT 10) ) … PATTERN ('(OTHER|EVENT){1,20}$') SYMBOLS (…) RESULT (…) )) n;

Interactive Analytics

Reducing the “Noise” to find the “Signal”

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Mercedes Drills Into Typical Reasons for Account Closure Yesterday

• Drilling further, and correlating with Care Center analysis she was doing, she finds that yesterday > 128 people called the Care Center angry about fees. > 3 of them ended up cancelling their accounts with the bank

• Mercedes used Aster to go back in time and see what those 3 customers had done BEFORE they called the care center

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“Fee Reversal Attrition” Visualized with Tableau on Aster

Business Question(s) you can answer with Terdata Aster: • Is there any identifiable pattern of behavior prior to account closure? • If so, what does this pattern look like?

Remember: “It takes 3x more money to acquire a customer than to retain one.”

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What You Could Do With This Information

• Knowing this, you could potentially use Active event technology at those upstream points to reduce the irritation that leads to defection. For example, > We know that the bank just charged them a fee. Maybe they

saw it when they came to do web banking, or they just got a statement in the mail. They then bring this up on one of many channels. We could build – – A pop-over on a Teller screen so a Teller can waive the fee– A pop-over on a Web screen for the bank’s internet site– An instant message on a mobile phone saying that because you are a

loyal customer, the fee has been waived.

• Obviously, there are also customers who might not deserve a fee waiver. Again, you would know that by running Teradata Value Analyzer (TVA) or other BI analytics to study profitability of individual customers.

• Bottom line: StagnoBank can KNOW and TAKE ACTION to improve Customer Service

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So What Did Mercedes Come Up With?

Mercedes Ideas “One and Done” screens for contact center agents

Customized button pushes on the Interactive Voice Response

Same agent call routing

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Mercedes’ Big Idea Overview:Connect the Contact Center to Teradata

Three parts to the Contact Center Improvements: • Agents – All info on one screen for the agent, completely up to

date (e.g., you were just on the mobile bank website). Much faster response times and no handoffs; “One and done” – one call, complete resolution!

• IVR – Interactive Voice Response – In many cases, if we know what you were doing, we can reconfigure the button pushes so the first button is the resolution to the most likely reason for calling

• ACD – Automatic Call Distributor - if you do need an agent, why not give you the same one each time if we can, someone around your same age, maybe?

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Old Way of Call Handling (animated)

Screen PopACD

Monitor

ACD

Agent 3

Agent 2

Agent 1

Queue 1

Agent 3

Agent 2

Agent 1

Queue 2

OffShore

At Home

In-HouseAgent

Call

IVR

Too Many Places to Look for InfoSame for AllRouting

Same for AllButton Pushes

Any Agent

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Typical Layout of IVR Button Options

Instead of one-size-fits-all button pushes, we’ll dynamically modify for each caller, based on their behavior and history

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Typical Set of Software/Hardware Systems

A message bus, with many different systems (including the Contact Center) and its servers

Many silos of information about what the customer is doing – you need to consolidate!

Where Teradata

Could Help

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New Way of Call Handling3 Ideas

Screen PopACD

Monitor

ACD

Agent 3

Agent 2

Agent 1

Queue 1

Agent 3

Agent 2

Agent 1

Queue 2

OffShore

At Home

In-HouseAgent

Call

IVR

Idea #3: Routing to Age-Appropriate Banker, Same One as Before

Idea #2: Buttons CustomizedFor ME

Idea #3: When PossibleI get MyBanker

Idea #1: All Relevant Info on One Screen So Calls are ONE and DONE

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Idea #1: Much Smarter Agent Screens

• All the information is on the first screen so an agent can quickly assimilate context (and it’s active, so up to date)

• GOAL: All contextual info on One screen

• The goal is ONE AND DONE – when you have a problem, you make ONE call, and the agent has all the information so you can be DONE in one, fast call

Here’s an example of a mother who was just on the StagnoBank car loan page – because her son had an accident with the family car and she needs to buy a new one!

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Idea #1: Better Contact Center Screens

< >

<>

I see you you’ve been looking at our online car loan page. Based on your banking and credit history, we can approve the loan today over the phone and offer you custom terms

Did you know you were near your overdraft limit last week? Would you like to discuss overdraft protection?

Personalized offers

Web-Loan

Overdraft

Trigger X

Customer View

Cheryl Wilkins

68 Prairieville Circle

Chicago, IL, 60614

312-264-5929

Customer Value score: 87

Attrition score: 62

Accounts

Email

Household

Customer X

1281%6375

Approval

Handoffs

Sales

$ TargetActualTarget

Offers Made

My Sales Targets & Scores X

Acct Age: 7 Last order: 11/15/11Last offer: B707

Renewals: 07/02/12 Affinities: e-Nest3Product links

01/10/12InboundCall Ctr

Customer History

01/18/12Outboundemail

01/29/12InboundCall Ctr

DateSummaryContact

X

!

!

708009838228

CW2929@gmail.comJoint account

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• All modern contact center systems are built with screen rendering capabilities based on portlets.> In the previous screen, there are 4 portlets (sometimes also

called servlets, accessing information in a variety of places).> This screen rendering engine is really no different from web

rendering engines – they are usually based on SOA (Service Oriented Architecture) principles, with web service “callouts” to information sources

• One of those information sources can be Teradata, which in the previous example provided:> Customer Value score > Customer Probability of Attrition score> Customer History – the 360 degree view of all interactions> Various “Next Best Activities” and offers. We used Aprimo for

this portlet, specifically a new engine called Aprimo Real Time Interaction Manager (ARTIM)

How Did BSI Implement This?

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Idea #1: Better Contact Center Screens – Here’s an example from another Teradata client, in Telco

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• Going back to the Fee Attribution example, we could do some sophisticated analysis to highlight customers who are being hit with multiple fees. This segment of At-Risk Customers could then be used in active mode by the Contact Center and Marketing groups.

• Two additional Contact Center scenarios.> Inbound. When customers call in (for some other reason) we

could have an add-on discussion with them about why they are incurring fees and perhaps guide them to banking products whereby they can avoid these. This might head off later defections, proactively. Information about this conversation would be part of the agent screen.

> The other is that we could queue up outbound calls to selected customers, again proactively ‘touching’ them before they get to the point of defection.

Another Idea (Not shown in the webisode)

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Mercedes’ Idea #2: Intelligent IVR

Care Center IVR (button push system), specific ordering of buttons for each customer driven by Teradata insights

• Teradata BI is used to “anticipate” why you are calling

• We can be at least 80% accurate on the first button, 90% accurate on the first two

E.g., if you just deposited a check to an ATM, the system infers that the first reason for calling might be to see if the check has cleared and you can use the money, so that would be Button Number “1”

IVR

Idea #2: Buttons CustomizedFor ME

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Idea #2: Customized Buttons on the Interactive Voice Response System

• Caller: Kim Maree• Teradata knows: she deposited a check

from her trophy engraving business this morning at an ATM

Teradata system computes top probable reasons for calling:• #1: “If you’re calling to see if the check

for $1562.28 you deposited at 10:02 this morning has cleared, press 1.”

• #2: “If you’re calling about your work direct deposit this week, press 2.”

• #3 “If you’re calling about your Visa auto-pay scheduled for tomorrow, press 3.”

• Buttons 4-9 as usual for general bank services

80% of calls can be handled by the Interactive Voice Response system!

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• StagnoBank has years and years of information about all the customer interactions. Until they bought Teradata, it wasn’t all in one place – but now it is.

• Using standard BI tools, Mercedes took a stab at figuring out the sequencing of activities (just like the Fee reversal, except more generally). When people call the care center, what are they asking about?

• Do enough of these and you will see the patterns – then you can anticipate WHY someone is calling before they even say a word – and backmap that capability (and often the complete answer to their question) upstream to the IVR device.

• Like the contact center rendering engines, most IVR systems today have web service callout capability. One of those options is the sequence of button pushes, the audio to play, and the connection to make (including text-to-voice to play back current balances, for example)

Wow! How Did Mercedes Do This?

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Idea #2: Teradata drives the IVR buttons Use BI to calculate the probabilities

• Capture customer events in the ADW

• Assign scores to customers based on events

• Based on the scores create alternate IVR Call Flows in IVR Designer

• When a new call comes, route the call to the appropriate call flow based on the score assigned

• This concept is called “Dynamic IVR”

IVR Port

Check Deposit

ATM#2952

$

OverdraftFee

Details

IVR Scores

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How Teradata Works With the IVR Use BI to calculate call-in probabilities

• Capture customer events in Teradata

• Assign probability scores to customers based on recent events

• Based on the scores create alternate IVR Call Flows in IVR Designer

• When a new call comes, run the appropriate call flow script based on the scores assigned

• This concept is called “Dynamic IVR”

IVR Port

Deposit Cleared?

Channel

Amount

Data/ti

me

Overdraft Fee?

Channel

Amount

Fee

Teradata

IVR Scores

Button#1

Button #2

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Idea #3: You Usually Get the Same Agent

ACDMonitor

Agent 3

Agent 2

Agent 1

Queue 1

Idea #3: Routing to Age-Appropriate Banker, Same One as Before

Idea #3: When PossibleI get MyBanker

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Idea #3: Teradata Drives the ACD to Connect You to the Same Agent, If Available

• The Care Center Automatic Call Distributor, driven by Teradata, can connect you to same agent each time when possible – you get to talk to “your banker” instead of any random person

• Especially important when you’re calling back in on the same day – you probably already spent the time to give someone the context of what’s happening – you don’t want to start over!

• Teradata can recognize your caller ID or account number and try to always connect you to the same agent if available, maybe even tell you the wait time

• If the person is not available, we can give the context on the care center screen to the agent who picks up

• Or give you the option to leave a message and that agent will call you back

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Idea #3 - Web Service Callouts to the Automatic Call Distributor - How This Works

• Use of web services to integrate ACD with ADW (knows who “your usual agent” is)

• Implementation of rules in Teradata Active System Management to make sure that Call Center queries get highest priority

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Idea #3: How Teradata Works with the ACD

• Calculate scores (based on subscriber behavior, his most frequent agent etc.) in ADW for each customer and assign them values from 0 to n (n being the total number of queues)

• Give the subscriber the option of waiting “x” minutes before reaching his desired agent (who may be busy) or ask him to hang up and that particular agent can call him back. Or can select “any agent”

• The technology used is called “Virtual Hold”

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New Way of Call Handling3 Ideas

Screen PopACD

Monitor

ACD

Agent 3

Agent 2

Agent 1

Queue 1

Agent 3

Agent 2

Agent 1

Queue 2

OffShore

At Home

In-HouseAgent

Call

IVR

Idea #3: Routing to Personal Banker Justin

Idea #2: Buttons CustomizedFor Francisco

Idea #3:

Idea #1: All FranciscoContext on One Screen So Calls are ONE and DONE

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Putting It All Together Francisco’s Contact Center Screen

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Mercedes’ Ideas on Better Customer Service

• Which one would you vote for?

Mercedes’ Ideas

“One and Done” screens for contact center agents

Customized button pushes on the Interactive Voice Response

Same agent call routing

Mercedes#1

Mercedes#2

Mercedes#3

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Vote for Mercedes!

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Check Out Max’s and Matt’s Ideas, Too! (StagnoBank Parts 1 and 3, on YouTube.com)

3 - Matt:Consumer Apps, Alerts, Geo

1 - Max:Better Marketing

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Summary of Ideas From the BSI Team (From all 3 areas) – See the other episodes!

Max Ideas Event-based campaigns to increase relevance

GoldenPath Analysis to increase channeleffectiveness

Attribution Analytics and Digital Marketing Optimization

Mercedes Ideas “One and Done” screens for contact center agents

Customized button pushes on the Interactive Voice Response

Same agent call routing

Matt Ideas “Consumer Intelligence” budget / planning apps

“My Bank Looks Out for Me” alerts

“Geospatial Apps” to drive customer education

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For More Information about Teradata and Active Contact Centers

READ an overview of how Teradata can be used to help active the Contact Center: http://apps.teradata.com/tdmo/v07n01/pdf/ar5217.pdf

WATCH this Teradata “Active Contact Center” video:http://www.teradata.com/demos/AEI-call-center/

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For More Product Information

• If you’re in the banking industry, you may want to look at Teradata offers at http://www.teradata.com/industry-expertise/financial-services/

• For more Teradata and Aster Data product information, see: www.teradata.com, www.asterdata.com

• A good attribution paper is “Integrated Marketing Management: Using Multi-Touch Attribution for Deeper Insight into the Customer Journey”

• For more information on Aprimo Relationship Manager, see:  http://www.aprimo.com/Products_.aspx?id=2265

• For more information on Aprimo Real Time Interaction Manager, see: http://www.aprimo.com/Products_.aspx?id=2266

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Other BSI Episodes???

You can find more episodes at www.bsi-teradata.com or on YouTube (keywords: BSI Teradata Case):

> Case of the Defecting Telco Customers> Case of the Misconnecting Passengers> Case of the Credit Card Breach> Case of the Retail Tweeters> Case of the Fragrant Sleeper Hit> Case of the Dropped Mobile Calls

Corresponding “How We Did It” PowerPoints are available, too, at www.slideshare.net (keywords: “BSI” “Teradata” “Case”)

BEST BANKING DECISIONS POSSIBLE