www.pwc.com.au/analytics www.pwc.com.

au/fs

Who to call?
For a deeper conversation about Customer Analytics in Financial Services, contact one of our team today.

Jason Slade
Partner, FS Industry expert
e: jason.slade@au.pwc.com m: 0402 027 973

John Studley
Partner, Analytics leader
e: john.w.studley@au.pwc.com m: 0417 220 198

PwCs Analytics services

Shane OSullivan
Principal, FS Industry expert
e: shane.osullivan@au.pwc.com m: 0412 620 255

Providing clarity with information, to support better decision making.

Customer Analytics in Financial Services

Andreas Skopal
Director, FS Customer expert
e: andreas.skopal@au.pwc.com m: 0407 703 922

Sheetal Patole
Director, Information Management expert
e: sheetal.patole@au.pwc.com m: 0414 257 516

Doris Spielthenner
Snr Manager, FS Customer Analytics expert
e: doris.spielthenner@au.pwc.com m: 0419 867 025

www.pwc.com.au/analytics www.pwc.com.au/fs

David Cummins
Snr Manager, FS Technology expert
E: david.cummins@au.pwc.com m: 0414 988 262 2013 PricewaterhouseCoopers. All rights reserved. PwC refers to the Australian member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

Garth Brooker
Snr Manager, FS Customer Analytics expert
E: garth.brooker@au.pwc.com m: 0408 495 954

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Liability limited by a scheme approved under Professional Standards Legislation. PwC Australia helps organisations and individuals create the value theyre looking for. Were a member of the PwC network of firms in 158 countries with close to 169,000 people. Were committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.au.

Customer Analytics in Financial Services

In the new world of mobile and digital, consumers are now always connected, empowered and more demanding. They want to be recognised and well served regardless of the channel they use or person they speak too. Along with this shift in behaviour comes an ever growing mountain of data. Customer analytics is a means of transforming data into information. Turning data into insights, and insights into action is the new battleground.

Where are you on the journey?

3 2 1
Hygiene Efficiency
What are the capabilities and customer insights that will immediately add value? Do we prioritise campaigns based on their past and potential impact? Are we putting the best leads in front of our advisers/brokers? What role does external data play? How can my (offshore) partners be used to effectively augment internal capabilities?

How we can help?

Over a three month engagement we can help you to accelerate and improve the benefits from your customer analytics function, through our unique Value Discovery approach. We can support you to build a strong benefits case that identifies self-funding opportunities and underlines the critical enablement of digital, direct customer engagement, customer satisfaction and your product, growth and productivity targets. High impact

How can you accelerate value creation from your analytics investment?

Are we asking the right questions of our Analytics team? What are my options to deliver value, with poor quality data and developing capabilities? What needs to change to connect the Analytics team more effectively to the rest of the organisation? Are we using our existing IT assets effectively?

What are the game changing analytics that will transform my business? How should strategic planning incorporate analytical insights? Where can telematics and other sensors add dramatic value? How does customer analytics extend to operations and risk analytics?

Our Value Discovery approach

A Value Discovery phase focuses on capturing immediate value to fund big picture programs Program Net benefits (margin $) New way

Building analytics into a core competency will define the next winners eg. Facebook). Its more than product, price and service its also about convenience and getting to the right customer at the right time with the right offering.

Old way

The benefits
Up to 70% cross sell and lead conversions improvement (eg. OCBC Bank increased its conversion rate by 3 times in 5 years) 5-6% improvement in productivity and profitability in organisations that embrace Data driven decision making 1 Significant improvement in online sales, direct customer engagement and cost reduction, through data hygiene and sophisticated web-analytics (eg. RBC now generates 20% of financial planner appointments through its website)

Yr1

Yr2

Yr3

Time

Accelerates payback 3x faster

What does good look like?

Analytics is a strategic enabler and is aligned to priorities spanning across the organisation from customer, to distribution to product.

Unlocking insights from customer analytics is half of the battle. The other half is adopting these insights into action. Our implementation roadmap ensures that all necessary change is considered. For example:

The challenges
How do we leverage our customer analytics while data quality is poor and/or data quality improvements are building? How can we fund capability development while under significant cost reduction pressure? How do we increase our return on significant analytics investments to date? How can we deploy customer-centric analytics while we operate in a product or channel driven organisation? How do we get the right people and capability to drive analytics through the business?
Efficient analytics operations and data sourcing in-house third party Analytics drives key decisions based on strategy (eg. growth, margin by product or customer) Organisational alignment for key activities strategic planning coordinated customer experience and campaigns data management Clarity on performance measures and tracking of success

IT is pragmatically invested in, and existing capabilities and infrastructure are leveraged Customer execution processes (like point of sale/service) fully leverage analytics insights

Data is managed as a business asset related to revenue, retention, and margin opportunities

Ensuring analytical insights are leveraged to update the customer propositions

Benefits realised
Quantitative measures new business revenue (up 10% p.a.) reduced customer lapses (down by 5% pa)
1 Brynjolfsson, Erik, Hitt, Lorin M. and Kim, Heekyung Hellen, Strength in Numbers: How Does Data-Driven

Qualitative measures analytics used routinely in boardroom decision improved customer experience (increased NPS)

Actionable insights are efficiently executed with change management best practise

Key planning processes (eg. campaigns) are updated to optimise results

Decision making Affect Firm Performance? (April 22, 2011). Available at SSRN: http://ssrn.com/abstract=1819486