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Published by Cequity Solutions
CEquity Solutions provides a plan for effective channel migration in retail banking.

Learn more at: www.cequitysolutions.com
CEquity Solutions provides a plan for effective channel migration in retail banking.

Learn more at: www.cequitysolutions.com

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Published by: Cequity Solutions on Mar 17, 2009
Copyright:Attribution Non-commercial


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Creating channel migration strategies
for a Retail Bank using Analytics
Solution Overview

In years gone by, a single channel used to be all that banks needed to
deliver products or services to their customers. Customers are now
demanding much more choice. Research shows that multichannel
customers spend 20 to 30 percent more money, on average, than
single-channel ones do, and channels such as the Internet promise big
cost savings.

Yet multichannel marketing is harder than it might appear.

Retail banks are constantly struggling with managing high tra\ue000fc in their
branches. Meanwhile customers who walk into their branches are the
costliest to serve and it is in the interest o\ue000 the bank to steer customers
towards lower cost channels.

Business problem-Net banking, Phone banking, Mobile banking & other channels
\ue000How do we migrate more savings account customers to register and activate their Net Banking and Mobile Banking accounts?
How do we increase the width o\ue000 Net Banking & Mobile Banking usage with customers? Can we get customers to use Net
Banking & Mobile Banking to \u201cview balances\u201d and also do transactions such as \u201c\ue000und trans\ue000er\u201d?
How do we prevent customers attriting \ue000rom their month on month behavior? So how do we get them to remain \u201csticky\u201d to Net
banking & Mobile Banking?
How do we engage the customer with a li\ue000e cycle approach?
Our approach

Integrated Customer
View- Marketing

Customer Value
Price Sensitivity
Incremental Value

Campaign Management
O\ue000\ue000er Management
O\ue000\ue000er Personalization

Customer Sales Data
Customer Value
O\ue000\ue000er History
O\ue000\ue000er Response History
O\ue000\ue000er Elasticity
Response Incremental Value

Marketing ROI
Measurement &

Integrated customer view \u2013 Marketing Data Mart

Integrated customer view is the frst hurdle that any bank meets. It is important to have all customer/account / transaction data at one place and to be able to link customers across their product holdings. In all probability, every product line within a bank sits on a separate system (main\ue000rames or database). The Customer In\ue000ormation System (CIS) should be able to link all customers \ue000rom various product systems and defne the various relationships (house holding). I\ue000 the Bank does not have a CIS system, then they need to build a marketing data mart wherein individual customers /accounts need to be gathered \ue000rom various systems and the customer integration process begun.

Cequity can help banks build the robust retail banking industry marketing system that is scalable to
any size of business and also carry out the integration in a very seamless fashion.

This marketing data mart will include customer attributes plus transaction in\ue000ormation across channels, product holding and daily liability transaction detail linked with campaign history and response, including data quality processes and computation o\ue000 a broad array o\ue000 standard marketing metrics.

Using this marketing data mart attributes Cequity has the capability to build custom models and carry out a range o\ue000 Analytical
Solutions designed to meet banks specifc marketing needs and business objectives.
Analytical Solution
\ue000Cequity\u2019s Customer li\ue000ecycle approach can be customized to allow us to treat each segment di\ue000\ue000erently.
Depending on the stage in the li\ue000ecycle a variety o\ue000 Analytical Models can be built to change customer behavior.
Profle, segment and analyze the attributes, metrics
and behavior o\ue000 customers and prospects over time
Visit patterns such as recency and \ue000requency scoring index
Create Channel penetration indices basis RFM
Create Analytical Models to predict channel migration
cross-sell, up-sell, customer proftability etc.
Customer acquisition and retention
Demographic, geographic and psychographic attribute
Retail Banking Industry Solution Functionality
Customer Analytics

Measure and analyze the incremental fnancial per\ue000ormance o\ue000 all marketing activities by campaign / promotion, marketing channel, o\ue000\ue000er and individual customer or any other segment o\ue000 customers

Marketing ROI
Response, o\ue000\ue000er redemption and promotion participation
Channel Start/End Date
Transaction Type
Account Details

Type, Currency, Status, Balance, Branch

Customer Type
Customer Segment
Customer Demographics

Marketing Analytics
Registered but

Tough Nuts
Dormant reactivation
score card
Use Up-Sell score card
once active


Dormant (Ever used
but not used \ue000or last six

Activation Model
Campaign Construct redesigned
to use the model e\ue000feciently
Score cards by customer vintage


Customers who remain
in-active a\ue000ter dormant
re-activation campaigns
Proactive retention activity

Registered but
never used

New Registrations
o\ue000 liability customers
Acquisition score card

\u00df\u00dfNew Acquisitions

Active Users (Ever
used in last six

Migration o\ue000 customers \ue000rom
non-fnancial towards fnancial
Segment migration tracking
Dormancy prediction model


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