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🌠
A CASE ANALYSIS

DnB Nor Bank pursues an

🌟 enterprising strategy with
Teradata 🌟

BY GROUP 4
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 BACKGROUND...
🧗🏽‍♂️
 With the existence and recognition of Customer
Relationship Management nowadays, organizations
are transitioning from the transactional customer
relationships to focusing on adding value and
strengthening these relationships.

An example of an organization that acknowledged

the importance of CRM is the Union Bank of Norway
(UBN) in 1995 that has merged with DnB and
became the DnB Nor Bank.

CASE BRIEF
 Way back before the merger took place, UBN was a
leading company in the financial service sector of
Norway. But despite having this leverage, they were
also faced with challenges as the behavior and
preferences of consumers changed over time. This has
resulted in a decrease in branch visits and customer
loyalty.

To resolve this, UBN decided to partner with Teradata

to build a substantial database since they were having
a hard time gathering relevant consumer data in a
unified manner.
CASE BRIEF
 Afterwards, the company was able to utilize consumer
data proactively and used it to provide customized
services for their consumers wherein the life phases
and situations of each customer were taken into
account. This is also due to the fact that the bank
understands that their customers are individuals with
specific needs and circumstances rather than just mere
accounts that have certain risks and costs.

CASE BRIEF
 As a result, UBN managed its costs effectively with
customers also benefitting from this. Furthermore,
aside from delivering integrated customer services that
strengthened their customer relationships, the
productivity of UBN's employees was also enhanced.

Lastly, the company's overall market share, market

relevance, and performance was augmented because
they were able to use consumer data efficiently and
create value in these relationships that made
consumers to willingly pay more and stay with them
longer.
CASE BRIEF
QUESTIONS...
1
Discuss the industry characteristics
and competitive landscape of the
company identified in the case.
What are their implications in the
company’s strategies?
 Multiple Channels and Efficient
Financial Distribution System

Numerous banking channels- branch network, ATMs, call centers,

business centers and internet banks, enable DnB to implement
strategies that are relevant for their customers. Moreover, the
brand's combined use of traditional methods of service delivery
and new technologies has strengthened the company’s local
knowledge and expertise reputation.

 The Trend of Individualization

in Financing

The multiple types of channels and services available lead to

customers demanding more customization and individualization
programs. This, however, calls for massive efforts on customer
intelligence.
 Automation and other
Technological Developments
Customer databases and warehousing opens
opportunities for DnB to develop strategies that
enhance customer relationships.
2
Identify the characteristics of their
customers and customer segments
 The bank caters to various consumer bases with varying needs and
capacities. And with the constant development of technology, expectations
continue to increase in response to these innovations. Customer’s banking
habits and behaviours have elevated as they want more control with their
money and easier access to financial services.

The business currently serves an estimate of 2 million customers and

commercial businesses and through their partnership with a strong data
warehouse called Teradata, they are able to keep records of their
customer’s information from the bank’s core data and systems.
 DnB Nor Bank used to segment its market into general categories such
as “Mass Market” and “Key Customers”. However, through Teradata,
they were able to evaluate and observe their customers more
thoroughly. In this case:

For Students: Due to their dependent nature in terms of their finance and
their financial needs and capabilities are still limited, the services they make
use of are mostly centered around financial loans and cash facilities.

 For Professionals: Since professionals usually have more complex

financial interests and have more collaterals to avail of bigger financial
loans, the utilization of the bank’s offerings increased as they open
multiple accounts to safeguard their financials, utilize mortgage
repayments and other seek insurance covers.

Given that data, they can see differences in the services their customers
seek. Their customers also respond well with their events and promos as
seen from the 60% conversion rate as a result of their marketing activities
and customers value the bank’s active efforts in aiding their financial
activities and making it accessible for them.

🦀
3
What are the business and customer
strategies of DnB NOR? Do you
have other recommendations?
 Current Strategy
(Teradata: Data Warehouse)
UBN stores relevant consumer data such as bank transactions in the last 6
years, previous engagements with marketing strategies, relationships, and
demographics. It is a centralized database where all UBN branches can
easily track their customers. All of this information is stored and analyzed to
better understand how customers use UBN’s services, and their financial
capacity at certain points in time. Through this, they got a better
understanding of how, when, and where their services are needed by various
customers. They were able to use Teradata to customize services and
increase customer profitability and satisfaction at the same time.
 Current Strategy
(Teradata: Data Warehouse)
In relationship with CRM, they use consumer data to drive customer care,
customer value, and customer service by segmenting their consumers
according to age and lifestyle. In which they align their services depending
on the needs of their consumers according to their financial needs at
certain points in time. Teradata updates its system and information
management regularly to make sure that projections of consumer needs
are most accurate.
This strategy of UBN is proven to be successful in driving market relevance
and performance up. However, Teradata is highly reliant on accurate data
collection. Opal even gave emphasis on the “boomerang effect”, such that
Teradata is only as good as the quality of the data collected.

Teradata's Website
 Teradata Personalization

This will allow Teradata to build better consumer profiles

according to personality types and personal interests of their
consumers. Through this they can make different banking offers
that can appeal to each resulting consumer segment. With the
added value of personalization, the group believes that the
turnout can be great for this strategy.

Recommendation
4
Come up with a vision statement
that fits the company.
 Nor Bank is the largest financial institution in Norway with
a highly acclaimed financial distribution system and a
longstanding reputation for local knowledge and expertise. The
bank has set on a decisive customer strategy of creating,
retaining, and expanding customer relations. Moreover, it
commits to meeting the total needs of customers through
product and service development.

As stated in the case, DnB Nor Bank's goals were: 1) to be

“actively helpful and accessible” to their customers, and 2) to
become "the automatic first choice for retail customers and
local industry throughout the country."
“To give every Norwegian the
right to confident banking”

CONCLUSION...
 In this case, we have identified and analyzed DnB
Nor Bank and its business and customer strategies,
which significantly built and managed their customer
relationships on a more advanced/innovative and
personal level. This then resulted in a huge success,
making the bank reach a high level of profitability as
well as keeping its reputation as the biggest and most
expert bank in Norway

From the chapter's concepts to the strong points

discovered in DnB Nor Bank’s case, we arrived to the
following conclusions:
 Customer-Centric Strategies
Win
DnB Nor Bank has shifted its research and strategies
from being product-centric to customer centric,
which then resulted in stronger customer satisfaction
and loyalty. This proves that in order to win
customers, the focus should be on them.
 Embrace & Maximize
Technology
Like how DnB Nor Bank earned leverage with
Teradata, Technology is an ocean of opportunities
that brands and marketers can and must take
advantage of in order to thrive in the market.

 Data is King

Without data, brands won’t understand their

customers, and the market won’t then understand
what it stands for.

 MEMBERS OF GROUP 4...

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