CMO Roundtable Conference 8th June, 2011

Presented by - IBM & Customer Centria

www.customercentria.com

Fuelling Interactive Marketing Through Customer Analytics

Ashish Singhal Head Privilege Banking ICICI Bank

Agenda

Challenges in Customer Communication

The ICICI Bank Solution

Vision and Roadmap

Agenda

Challenges in Customer Communication

The ICICI Bank Solution

Vision and Roadmap

Its a Fan

Its a wall

Its a Spear

Its a Rope

Its a Tree

What does the customer need?

Credit Card

Discount Offers

Insurance

Trade Finance

Home Loan

The Marketing Paradox

The very things that marketers are doing to build relationships with customers are often the things that are destroying those relationships.
Harvard Business Review January, 1998

Statement stuffers Junk mail Pop-up ads And

Customer Touchpoints
Customer today is value hunting across multiple channels!

Website

Call Centers

POS

Customer Buying

Mobile

E-Mail

Channel Communication
Confidence among consumers for marketing communications across media

Title in here

Word Of Mouth

87%

Newspapers
Online Opinions Brand Websites Television Magazines & Radio Search Engine Ads Online Banner Ads, Mobile Ads
29% 41%

77%

73% 72%

65%

64%

Source : AC Nielsen

Expectations Hype
There is a huge gap between the Customers expectations and the actual fulfillment

Plan & Sell

Plan&Sell

Identify and communicate with the right target audience Carry out the actual fulfillment

Execute Analyze Success

Analyze Success
Measure the results and determine success

Execute

Agenda

Challenges in Customer Communication

The ICICI Bank Solution

Vision and Roadmap

Marketing as a Bridge

With EMM
CEO CFO The earlier complaints :
- Marketing not aligned with CFO concerns - Not tracking the right metrics - Not Playing a role in critical strategy

Now :
- More closely aligned with Cash flow drivers - Tactical as well as Strategic function Speak the language of finance

Title in here

Typical Customer View

Mr Jain
Mr Jain is an attractive target for home loans

Marketing

Married, 2 children, Joint family

Marketing

Collections

No problem of re-payment of 2-wheeler loan

Mr Jain is a good customer

Collections

Call Center

Mr.Jain called up thrice last Month for loan against home

Mr Jain is a hot lead for a personal loan

Call Center

Risk

Mr.Jains 2-wheeler is co. Financed and there is a Fore-closure request

Mr.Jain may be moving On to a new job

Risk

Is Mr Jain a potential customer? Is he safe?

Need of the hour

Alignment!
Future Vision

Historical Performance

Strategy

Customer Experience Management

Optimization

Service Management

Experience Management

Offer Management

Response Management

Age of Consumerism!!!

One Integrated Customer View

Mr Jain

Event Treatment

Marketing Marketing
Married, 2 children, Joint family

Collections

No problem of re-payment of 2-wheeler loan

Call Center

Mr.Jain called up thrice last Month for loan against home

Married, 2 children, Joint family, No Problem on repayment Of 2 wheeler loan. Enquiring for loan Against home and There is a foreclosure Request on 2 wheeler Loan.

Risk

Mr.Jains 2-wheeler is co. Financed and there is a Fore-closure request

Mr.Jain has possibly lost/changed his job and we need to validate his employment status and credit worthiness before proceeding with any new business with him.

Collections

Call Center

Risk

Financial Department

Consolidation

Closed Loop Learning

Customer Analytics Framework

Customer Segmentatio n

Response Capture Customer Analytics

Propensit y Models

Use of EMM Tool

Single Customer View

Imagine a full stadium with 70,000 people Which of those people are open to buy NOW ?

Suppose that it is only 0.2% TIMING RELEVANCE SPEED (which means 140)
Who are those 140 people? (timing) What do they want to buy? (relevance) How much time do you have left to sell? (speed)

Latency / Need based Marketing

Business event Data latency

While the CSR is still talking/listening to the customer While the customer is still using the ATM While the web page is still in front of the customer Speed of Response = Higher Revenue

Value

Data captured

Analysis latency

Intelligence delivered Decision latency Action taken

Point-of-Sale

Call Center

Action time

Source: Bolder Technology

Channel Innovation ATM Insufficient Funds

EBM Campaign Overview Identify customers who are using ATM for cash withdrawals but having insufficient funds in their savings accounts Benefit These customers will have be offered personal loan to manage and plan their finance Customer can enjoy different pricing according to their behavior score Higher cross sell ratio Offer ICICI bank will offer a personal loan to the customer Preferred Channels Outbound calling - PL DM & SMS PL

Success Criteria Customer Accepting PL

Low

High High High Easier

P

Customer Need
Low

Potential ROI
Low

Strategic Value
Harder

Ease of Execution
Longer

Quicker
Easier Quicker

Time Sensitivity
Harder

Measured Easily
Longer

Measured Quickly

Where we want to be..

Strategic Customer Insight

Source Data
Reports & Analytics Loans Enterprise Data Warehouse Purchase Modeling Cross Sell Multi-Channel Campaign Automation Profitability Segmentation

Seamless Execution
Leads/ Offers Channels Segments

Web

Call Center

Social Butterfly

Email Liabilities Query Investment s Event-Driven Marketing Campaign Design Campaign Automation Agent or Account Manager

Campaigns
Mailer High Flyers

Credit Cards

Real Time Events

Enterprise Rules

SMS Traditionalists

Responses

Agenda

Challenges in Customer Communication

The ICICI Bank Solution

Vision and Roadmap

Optimization Process

Generate, Prioritize, and Dedup Leads Priority #1

Best Leads Frequency, Across Recency, & Communications Preference Marketing

Max # Leads Per Cycle Total Comm

Process By Channel

Deliver to Channel

Communications

Priority #2

Execute Channel Rule

Call Center

High Value Customers

Call Centre Database Channel Capacity = 6

Priority #3

Email

Low Value Customers

Priority #4
Electronic Channels

Segment Plans Dedup W/Comm

Database Channel Responses Prioritize Across Comm Max # Leads Channel Capacity

Limiting

Data Warehouse

Unrealized Opportunities

Optimization Effect

OFFERS
Thousands

Optimising Contacts
Multiples Millions

CHANNELS

CUSTOMERS

CONSTRAINTS
Product Targets Product Budgets Channel Capacity Min mail Volume Customer Fatigue Preferences

Optimisation mathematically determines.. The Best Offer & The Best Channel to Maximise the ROI of all campaigns

EBM :Turn the conventional model on its head

Triggers Simplistic Transactional Changes involving update of Single Field

High

INR 50 K Deposit

Secondary Events

Business Value

Triggers coupled with additional rules to determine significance to the individual

Patterns Secondary Events Triggers

Significant Deposit, Deposit is 2* average

Patterns Combination of multiple triggers & Secondary events occurring in sequence over a period of time

Low

Simple

Event Complexity

Complex

Change in Employment. INR 50K was redundancy, Salary stopped. Regular payments received from new employer 4 weeks later