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How digital technologies, social media and the explosion of data are redefining customer engagement models.
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© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 1
The Global Retail Banking
Digital Marketing Report 2013
How digital technologies, social media and the explosion of
data are redefining customer engagement models
EFMA - WIPRO
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 2
The EFMA WIPRO Report
HIGHLIGHTS
Everywhere we meet banks we find that online and
mobile banking are at or near the top of their agendas:
What services to introduce, how to engage customers,
and how to use customer information to personalize
marketing are typical questions.
There is a high degree of uncertainty because banks
are still learning and the digital environment is
constantly changing.
The study is based on an online survey of nearly 100
banks around the world, and interviews with 15 banks
in countries ranging from the United States to India.
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 3
Why is Digital marketing important?
The vision of banks is that digital channels will be complementary to branches
Inge Ampe
General Manager Marketing,
ING Belgium
The blurring between the digital
and the offline world will
continue, so that marketing will
be forced into a 360° approach
towards customers and towards
analytics.
Kartik Jain
Executive Vice President and Head of Marketing,
HDFC Bank
“Banks will need to be present where their customers
are...and customers are spending more time on
Content, Community and Commerce that is being
delivered through digital channels. The challenge for
marketers is to engage them in ways that are relevant
to the customer and to the medium.”
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 4
Vision for digital channels
Digital channels are also producing significantly more data which can be used to
profile customers, understand their needs, and target them in smaller and smaller
segments with the appropriate offers
Source: The Global Retail Banking Digital Marketing Report 2013
80% Complementary channels to branches
91% Primary channels for transactions
67% Primary channels for customer service
34% Primary channels for sales and advice
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 5
Digital Penetration
While the overall global trends are clear, there are nevertheless important differences
between countries and regions, particularly when you look more closely at speed of access
which affects the services that can be offered. There is a wide difference in Internet use
between developed and developing countries, less so in mobile
Percentage of individuals
using the Internet
Source: International Telecommunications Union 2013
77%
Developed
31%
128
89
Mobile phone subscriptions
per 100 people
Developing Developed Developing
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 6
Marketing Mix
Impact of digital channel in marketing mix of expenses at banks
Jessica Niewierra
Director Internet and Mobile,
ABN Amro
Digital marketing offers great
opportunities to add
context to your communication
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 7
The Digital Marketing Capability Index
Impact of digital channel in marketing mix of expenses at banks
One-to-one personalisation
Real-time event driven marketing
Test and learn*
Measurement of ROMI at campaign level*
% of banks with the
capability
Real-time single customer view
Segmentation using customer lifetime value
Micro segmentation
Predictive analytics
35%
40%
61%
71%
47%
36%
38%
41%
Source: The Global Retail Banking Digital Marketing Report 2013
* Approximate average usage by banks in digital marketing
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 8
The Digital Marketing Capability Index
Only a small proportion of banks are at the highest level of maturity, which is Level 4
Percentage of banks at each digital marketing maturity level
Source: The Global Retail Banking Digital Marketing Report 2013
17%
Level 1
39%
30%
13%
Level 2 Level 4 Level 3
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 9
The Digital Marketing Capability Index
There are some geographic differences in capabilities, but differences by size of bank are not so obvious
• Tier 2 banks by asset size are just as capable as Tier 1 banks
• Banks in developing countries are lagging behind
• Direct banks in our survey are at the highest levels of maturity
For banks in higher income countries, the range of capabilities seems to
depend more on their branch vs. digital focus, and on their
strategic/investment priorities
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 10
Assessment of Digital marketing capabilities
Real time single customer view capability is relatively low but banks expect this to increase
significantly
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 11
Test and learn
The use of a “test and learn” in digital marketing campaigns is surprisingly low
Percentage of banks at each level of test and learn use
Source: The Global Retail Banking Digital Marketing Report 2013
68%
0-25%
of campaigns
14% 7% 7%
26-50% 76-100% 51-75%
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 12
Return on marketing investment
The measurement of “return on marketing investment” is also still very low
Percentage of banks at each level of ROMI use
Source: The Global Retail Banking Digital Marketing Report 2013
36%
0-25%
of campaigns
7% 4%
25%
26-50% 76-100% 51-75%
29%
Aggregate
level only
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 13
Case example: Channel transformation and digital
marketing drives significant growth in product sales
• Cross-channel collaboration by seamless
hand off of leads from online to offline
channels
• State-of-art digital marketing platform with
ability to dynamically target the customers with
the right value proposition
• Channel agnostic common application
platform with instant decision making across
products facilitating multi product purchase
• Moving to paperless world by use of e-
signatures, emailing of welcome kits and
electronic disclosures
• Guided service delivery to enable help for the
phone channel advisor throughout the sales
process
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 14
Social media and customer engagement
Most banks are present on popular services but there is still relatively low use of other
social media options. Much less common is the use of user generated content (14% of
banks), customer reviews (27% of banks) or blogs (31% of banks). The provision of
advisory services and communities on Facebook will grow, but mixed views on transactions
Percentage of banks using each type of social media
Source: The Global Retail Banking Digital Marketing Report 2013
84%
27% 31% 14%
Blogs User-Generated
Content
Customer
Reviews
63%
54%
YouTube
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 15
Use of Social in Financial Services
Banking transactions
through Facebook
Credit scoring using
social profiles
Building community of
product users
Service and advice
through Facebook
Offer delivery to
Facebook account
Product launch
promotion
Barclaycard, US Moven, US Denizbank, Turkey
Swish, Sweden mBank, Poland ASB, New Zealand
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 16
The potential of ‘Big data’
Big data is still at very early stages in retail banks but a significant increase in
deployment is expected
Percentage of banks with big data projects in each area
Customer event management
Enterprise content management
Sentiment analysis
65%
46%
35%
Current Planned Total
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 17
Big data use cases for digital marketing
To build a real time 360 degree view of the
customer profile to facilitate multichannel
interaction management
For location based marketing, given the
proliferation of mobile marketing
To recognize the most valuable customers and
their network, and leverage the information for
new dimensions of micro segmentation
To identify the right channel and to deliver the
right sales value proposition for customers
To improve and innovate on products and
services in real time, leveraging the power of
social collaboration
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 18
Conclusion
Real time event driven marketing & one to one
personalisation are areas which need focus
Single customer view and marketing processes
are weakest areas
Small banks are not at a disadvantage; direct
banks are leaders
Social media now well-established but uncertainty
on next steps?
“Big data” is an emerging focus area with high
potential impact
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 19
For more details please visit the link below:
http://www.wipro.com/Documents/the-global-retail-banking-
digital-marketing-report-2013.pdf
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 20
As a global not-for-profit organisation, Efma brings together more than
3,300 retail financial services companies from over 130 countries. With
membership from almost a third of all large retail banks worldwide,
Efma has proven to be a valuable resource for the global industry,
offering members exclusive access to a multitude of resources,
databases, studies, articles, news feeds and publications. Efma also
provides numerous networking opportunities through work groups,
online communities and international meetings.
For more information: www.efma.com
About Efma
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 21
About Wipro Ltd.
About Wipro Ltd.
Wipro Ltd. (NYSE:WIT) is a leading Information Technology,
Consulting and Outsourcing company that delivers solutions to
enable its clients do business better. Wipro delivers winning
business outcomes through its deep industry experience and a
360 degree view of "Business through Technology" - helping
clients create successful and adaptive businesses. A company
recognized globally for its comprehensive portfolio of services, a
practitioner's approach to delivering innovation and an
organization wide commitment to sustainability, Wipro has a
workforce of 140,000 serving clients across 57 countries. For
more information, please visit www.wipro.com.
© 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL 22
Thank You ©Wipro Limited, 2013. All rights reserved.
For more information visit www.wipro.com
No part of this document may be reproduced in
whole or in part without the written permission of the
authors.
Wipro is not liable for any business outcome based
on the views presented in this document. For specific
implementation clients should take advise from their
client engagement manager.