IBM Software

Smarter Commerce

Banking

OCBC Bank nets profits

with interactive, one-to-one
marketing and service
IBM EMM helps Singapore bank increase marketing
revenue while building customer loyalty

Highlights
The need
OCBC Bank was realizing sub-optimal
results from its generic mass marketing
campaigns, losing out on revenue
opportunities and compromising its
position in the highly competitive
southeast Asia banking market.

The solution
With a sophisticated analytics platform
and the IBM EMM suite, OCBC has
transitioned to a personalized
event-based marketing system that is
achieving customer-centric goals of
greater relevance and timeliness.

The benefit
OCBCs revenue driven by marketing has
seen a triple-digit increase since the IBM
implementation; the bank has increased
its number of campaigns 12-fold and its
cross-sell conversion by a double-digit
percentage.

Competition for customers in retail banking has never been fiercer,

especially in the fast-paced markets of southeast Asia. OCBC Bank,
one of the largest banks in the Singapore-Malaysia market, is winning
the business and loyalty of fickle customers with personalized
marketing interactions at every touchpoint, driving cross-sell and
building long-term profitable relationships.
OCBC, the Oversea-Chinese Banking Corporation, is reaping the
rewards of a multi-year transformation into a customer-centric retail
bank with the IBM Enterprise Marketing Management (EMM) suite.
OCBC has evolved from generic marketing to coordinated,
personalized marketing interactions across 10 communications
channels and touchpoints including email, call centers, branches, ATMs,
direct mail, text messages and 3G mobile banking.

Relevance and timeliness delivers ROI

Running IBM EMM solutions atop a sophisticated analytics
infrastructure, OCBC is more precisely targeting customers based on
their activity, with double- and triple-digit increases in key metrics
since the program began in 2005. OCBC achieved return on
investment (ROI) on its IBM EMM implementation within 18 months.
OCBC is averaging double-digit increases in cross-sell conversion with
IBM marketing solutions, with conversion as high as 40 percent for
some campaigns. Revenue driven by marketing has seen percentage
increases in the triple digits. The number of leads deployed is up 417
percent, while campaign cycle times have been reduced 40 percent. The
bank has also increased its overall marketing productivity and upped
the number of campaigns it runs to 1,200 a year12 times more than it
did before IBM EMM was installed.

IBM Software
Smarter Commerce

Its all about relevance and

timeliness. IBM helps us to
be a lot more productive, so
that our processes are
optimized and we can go
from conceptualization to
execution in a day. The
secret to our success is that
we can do a lot more
marketing activity that is
much more granular and a
lot better targeted.
Donald MacDonald
Head, Group Customer Analytics & Decisioning
OCBC Bank

Banking

Its all about relevance and timeliness, said Donald MacDonald, head
of OCBC Group Customer Analytics & Decisioning (GCAD). IBM
EMM helps us to be a lot more productive, so that our processes are
optimized and we can go from conceptualization to execution in a day.
The secret to our success is that we can do a lot more marketing
activity that is much more granular and a lot better targeted.
Besides winning customers, OCBC is winning recognition as a leader in
data-driven marketing from such third parties as The Asian Banker.
The research consultancy ranked OCBCs customer analytics
capabilities #1 among 14 regional banks in 2010, a validation of
OCBCs success through what MacDonald calls a phased
transformation towards interactive marketing optimization.

Innovations in real-time inbound marketing

Building on its core event-based marketing infrastructure, OCBC has
recently introduced innovative real-time inbound marketing into its
entire branch network with IBM Interact, a solution in the IBM EMM
suite. The real-time inbound marketing engine supports a new
installation of large touch-screen monitors in branches so that
customers opening an account view information along with the
salesperson.
Towards the end of the face-to-face interaction, the monitor displays an
IBM Interact cross-sell offer based on inputs captured during the
session and historical data. If you look at the research, 70 percent of
the cross-sell potential in the lifetime of a customer happens in the first
90 days after they open an account, MacDonald said. Were really
focusing on making it a great interaction and introducing a relevant,
but subtle cross-sell as its the best time to engage the customer.

Increasing customer centricity with event-based

marketing
OCBCs event-based marketing strategy is driven by a data warehouse
that tracks customer activity across branch, call center, online and other
channels. That data is mined daily to detect unusual activity, based on a
large number of predefined customer states such as large transactions,
decreasing spend frequency and first rewards redemption.
IBM Opportunity Detection, a solution in the EMM suite, uses that
behavioral data to trigger an automated offer or personal interaction
with the customerfor example, an automated travel insurance offer to
a customer making a travel visa or luggage transaction or a phone call
to a customer making a large deposit. Various campaigns focus on every
aspect of the long-term customer lifecycle, from acquisition to
onboarding to retention.

IBM Software
Smarter Commerce

Solution Components:
Software
IBM Campaign
IBM Opportunity Detection
IBM Interact
IBM eMessage
IBM Contact Optimization
IBM Model
IBM Plan

Banking

Automated, lights-out daily lead generation has improved the

productivity of OCBCs 30-person GCAD team, enabling marketers to
pursue value-added initiatives that drive revenue and strengthen
relationships, rather than slow and costly processes of piecing together
customer data to implement campaigns.
Besides product-related cross-sell, OCBC also leverages the IBM
platform for event-based servicing to improve customer satisfaction and
loyalty while reducing churn. For example, IBM enables OCBC to alert
credit card applicants via email and text that their credit card fees have
been proactively waived. Such proactive interaction has contributed to
an increase in customer satisfaction while reducing call center inquiries.

Fast and flexible email and digital messaging

Meanwhile, OCBC is taking advantage of the speed and flexibility of
IBM eMessage to support many of its email campaigns, including daily
in-house emails for new customer onboarding. eMessage is more
cost-effective for smaller campaigns than a third-party email service
provider (ESP), and offers greater speed for urgent communications.
For instance, during a system outage, OCBC used eMessage to
communicate the problem and an apology to customers within about
two hoursfar faster than would have been possible with an ESP. We
were able to get SMSs and emails out to customers within a couple of
hours with IBM eMessage, and that brought a lot of positive feedback,
MacDonald said.

For more information

To learn more about IBM EMM, please contact your IBM marketing
representative or IBM Business Partner or visit the following website:
ibm.com/software/marketing-solutions

 Copyright IBM Corporation 2012

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July 2012
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