Cheshire Case Study Final

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Cheshire Case Study Final

  1. 1. ESSENTIAL UPGRADE LEADS TO DATA-DRIVEN MARKETING REVOLUTION Synopsis Established in 1870, the Cheshire is the UK’s 11th largest building society with around 900 staff, a 52-strong branch network, and assets in excess of £4.4 billion. Cequity's end-to-end suite of integrated services includes customer management In addition to providing retail financial services, the Cheshire has subsidiaries involved in estate Customer consulting, marketing database & agency, property letting and offshore deposit taking. Up until 1999, it largely relied on its local information management solutions, Cheshire Building Society analytics, metrics & dashboards and branch network to deliver its investment and mortgage products and services. The ability to campaign measurement support. Our manage customers through multiple channels and a wider range of products were urgently Industry sector state-of-the-art technology solution, needed, but first the systems had to be put in place to cope. CequityServices powered by smartFOCUS Financial ACE is and is a hosted customer marketing In early 2003, another force for change appeared in the form of experienced database marketer system that can be quickly implemented Solution Howard Ormesher who took up the role of Customer Knowledge manager. Ormesher saw the without major hardware or software Intelligent Marketing investments. This helps us deliver rich yet opportunity the new infrastructure presented for state-of-the-art marketing and valuable, information-driven, customer customer management. experience opportunities for you. Solution components Challenges and Solutions “From our experience, the Intelligent Analytical Marketing from smartFOCUS makes it possible Data Quality/Management to instantly analyze, segment, identify and Fast and Agile communicateCustomer View Single with large volumes of customers With a sophisticated multi-channel capability, it was time to take a close look at what was and contacts on an individual basis. Intelligent available to complement the other new systems in the way of a central marketing database Analysis & Visualization Marketing improves customer communications - throughout the entire lifetime of a company- and related functions. Predictive Modeling customer relationship and makes performance driven multi-channel marketing a reality. “We developed a ‘battle plan’ that looked at each segment, some of which had a high cost to Campaign Management smartFOCUS is faster and more efficient than we serve and some were declining, where others had huge potential. “At that point, we had shone thought it would be!” Email Marketing the torch into the darkened room but we still needed a system to apply the segmentation to the full database, make selections and track and report on campaign activity,” says Ormesher. Online Execution CEO - Cequity Solutions “All we had was a Business Objects straight reporting tool. We presented the case to the board Marketing Performance Management and they approved it.” A detailed statement of requirements then went out to a selection of Managed Service marketing vendors, with the emphasis on key operational deliverables rather than just a list of required functions. “You need to lock in things like the need for daily updates and the integration of specific systems to both the initial ITT and also the proof of concept,” advises Ormesher. “Otherwise, everything is up for negotiation and you can end up with the different vendors as well as your own internal people teaming up to tell you why it can’t be done! Under the terms of our contract, if implementation became protracted could walk away if the implementation took too long.” The smartFOCUS smartMARKETER suite, running on the Viper high-speed database, was chosen to build a proof-of-concept system. “It was the most stable and refined of the systems and its development had obviously taken account of a lot of the client feedback over the years,” explains Ormesher. “It’s flexible too, which is important when developing multiple pitches to be put to a customer in the branch. Normally marketing software deals with just one offer at a time but you can work around this in Viper.” The proof of concept was swiftly up and running and work then started on building the main system. As the work progressed, the proof-of- Powered by concept database was kept up and running with daily updates so that lessons learned from it about the data, the merge process and much else besides could be transferred to the new system using a strict change control procedure.
  2. 2. Results Following the successful completion of the project, four source systems now feed the marketing database nightly: the core banking back office platform, the call centre database, and the MAPs and iMAPs mortgage and investment application processing systems. All aspects of this ETL operation are controlled by the smartFOCUS Enterprise Manager application. In addition, a file of credit card customers from affinity partner MBNA will soon be added along with other data provided by 3rd parties. Better control of branch interactions with customers is another major benefit of the new infrastructure. “We have a very detailed record of all transactions, all date and time-stamped,” says Ormesher. “I’d be very surprised if any other building society could get this level of detail daily.” In total, over 500,000 customer records and 21million of their “most interesting” transactions are transferred to the smartFOCUS platform, whose highly-indexed database is in effect rebuilt from scratch early each morning. A permanent file of campaign histories is remerged with the new file each time to provide the continuity required; all other historical data is re-imported each night from the source system and all derived variables such as The Cheshire Building Society can now lifetime value, any bandings and even age are also recalculated on each update using the latest punch well above its weight when it comes to data. All this takes about 80 minutes. “If we have new demographic data that we want to load, data driven initiatives, we can easily link it in at postcode or individual level,” says Ormesher. “It amazes me how much thanks to its state-of-the-art customer the technology has moved on. We are now fully independent of bureau and IT. Once you’ve paid management systems. for the system, it’s just maintenance costs.” Marketing and IT can agree on at least one After exhaustive user acceptance testing, the marketing system is now supporting live thing: legacy systems are the bane of their campaigns for the first time. These include offering mortgage, buildings and contents insurance lives. Continually rejigging to mortgage holders, personal loan offers to relevant customers based on age, Cameo group ancient mainframe code to take account of the and product holdings, and ISA top-up mailings. One of the key variables for the former is latest add-ons sucks up time and resources renewal date, lists of which are available externally. “We need to know their insurance renewal best deployed elsewhere. date and their mortgage renewal,” says Ormesher. “It’s now very easy to append data.” As part of the drive to get the broadest and most accurate view, geodemographic codes and dates of So when the Cheshire decided to ditch its birth were amongst the first data sets to be appended, along with the original value-based legacy systems in favour of modern server- segmentation, and mailings have already gone out to ask those who have opted out of based software, it paved the way to potentially marketing contact to opt back in. Data collection in general - and email in particular - is a merge analytics and priority. “We ask for the email address on all forms and in the branch, and customers can opt operational customer management in a way in to our email newsletter on the website,” says Ormesher. “In future, we will select emails rarely seen in the UK financial services and different treatments on Viper.” sector. Customers can also use the site to state their preferred channel for different types of communication, opting in or out as desired. By inferring these media preferences across the database, the most suitable contact method can be used where possible. Market research surveys are already periodically mailed to samples of the various segments. Daily updating is tailor-made for triggered marketing and also means that conventional targeting can be based on customers’ most recent transactions. The other side of the coin is that the data that decisions are based on can change rapidly and selections can quickly go out of date. “Accounts change every day,” explains Ormesher, “so customers can move from one mailing cell to another if they pay in some money, or open a new account. It’s extremely dynamic and you have to get your head around the speed and complexity. It’s refreshed every day at 4am and we can have a campaign out by 6.30am. You have to plan your schedule in close to real time.” “Pitching”, uses the existing operational CRM capability to provide branch prompting, and it links to an HTML script using intelligence gleaned from customer database. Depending on the customer, staff might best use their visit to the branch to suggest a meeting with a sales consultant or simply ask them to provide their email address as part of the data gathering process. Some of those targeted in the initial mailings will also have the same products pitched to Powered by them by staff if they visit their local branch.
  3. 3. After exhaustive user acceptance testing, the marketing system is now supporting live Cheshire Building Society Customer campaigns for the first time. These include offering mortgage, buildings and contents insurance to Knowledge Manager, Howard Ormesher, has mortgage holders, personal loan offers to relevant customers based on age, Cameo group and been delighted with the speed at which they product holdings, and ISA top-up mailings. One of the key variables for the former is are now able to access renewal date, lists of which are available externally. “We need to know their insurance renewal customer insight. He says “we are keen date and their mortgage renewal,” says Ormesher. “It’s now very easy to append data.” to exploit the advantage that the daily refresh of the customer data gives us. As part of the drive to get the broadest and most accurate view, geodemographic codes and dates This will allow us to finely tune our of birth were amongst the first data sets to be appended, along with the original marketing campaigns with increasing value-based segmentation, and mailings have already gone out to ask those who have opted out sophistication, responding almost of marketing contact to opt back in. Data collection in general - and email in particular - immediately to the way our members’ is a priority. “We ask for the email address on all forms and in the branch, and customers can opt in operate their accounts. I have been to our email newsletter on the website,” says Ormesher. “In future, we will select emails and very impressed by the robustness of different treatments on Viper.” the daily build process which is now Customers can also use the site to state their preferred channel for different types of managed in-house with minimal IT communication, opting in or out as desired. By inferring these media preferences across the involvement. We now have customer database, the most suitable contact method can be used where possible. Market research insight in seconds, which is used surveys are already periodically mailed to samples of the various segments. immediately to develop ever more targeted campaigns, delivering greater Daily updating is tailor-made for triggered marketing and also means that conventional member value.” targeting can be based on customers’ most recent transactions. The other side of the coin is that the data that decisions are based on can change rapidly and selections can quickly go out of date. “Accounts change every day,” explains Ormesher, “so customers can move from one mailing cell to another if they pay in some money, or open a new account. It’s extremely dynamic and you have to get your head around the speed and complexity. It’s refreshed every day at 4am and we can have a campaign out by 6.30am. You have to plan your schedule in close to real time.” “Pitching”, uses the existing operational CRM capability to provide branch prompting, and it links to an HTML script using intelligence gleaned from customer database. Depending on the customer, staff might best use their visit to the branch to suggest a meeting with a sales consultant or simply ask them to provide their email address as part of the data gathering process. Some of those targeted in the initial mailings will also have the same products pitched to them by staff if they visit their local branch. As well as the smartANALYZER analysis toolset, the Cheshire has also bought the smartMODELER module which employs the popular KXEN automated model-building package to deliver functions like profiling and predictive modeling. “We’re not running predictive models yet, we’re targeting using the segmentation, recency, age, value and so on - standard stuff,” says Ormesher modestly. MapInfo’s GIS package already helps with local branch catchment analysis; a new Cheshire branch opened in central Manchester and Ormesher was able to plan 50,000 door drops in-house to accompany a mailshot to 20,000 customers situated in the postcode sectors round the new branch location. “Now we are looking at who from that mailing has taken up a product,” he says. Powered by
  4. 4. The Future Keep developing Though the infrastructure is now complete, the Cheshire is still very much at the planning stage in its new data-driven strategy. More data will continue to flow into the marketing database: the recently-built match keys used to link the call centre database to the central marketing database means that the Cheshire can add agent records to the central database, and export product histories and tailored scripts to the call centre. There are plans to integrate the complaints database in the near future. One missing link is a data hygiene application. Though all customer records on the marketing database have a simple name and address match key appended and the GB Accelerator tool is used for rapid address entry in the call centre, no de-duping or other verification work is carried out beyond IT’s quarterly postcode updating on the source systems. “This is one for the future and we have to make the business case for that too,” says Ormesher. The possibilities for future targeting are almost endless, including generating in-branch pitches dynamically rather than manually, based on the very latest transactional data. Customer journey planning is another ambition, with the appropriate treatments applied when customers are seen by the system to have reached a different “node” in their lifecycle. Another benefit from swift access to customer-referenced data includes greatly improved management information that will hand valuable measures like cost-to-serve and profitability to senior managers. “We can produce information much more quickly using Viper instead of Business Objects,” says Ormesher. “I can’t really think of anything we can’t do now, so it’s simply a matter of setting priorities.” Company Profile Reach us at: smartFOCUS provides software and services that enable companies to manage and coordinate marketing across multiple channels, including email, SMS, RSS, telemarketing, point of sale 105-106, 1st Floor, Anand Estate, and direct mail. The company provides a complete portfolio of data integration, analysis, 189-A, Sane Guruji Marg, Mahalaxmi, Mumbai-400 011, India modelling, on-line execution, campaign planning and management, with integrated budgeting and finance solutions. The result is ‘Intelligent Marketing’, driven by a single view of the Phone: +91 22-43453800 customer’s activities across all channels. Marketers can target their communications more Fax: +91 22-43453840 accurately, cutting wastage, increasing conversion rates and achieving a better understanding of the customer base. Users of smartFOCUS’s Intelligent Marketing solutions include AAA, For more case studies, white papers and presentations log on to: ABN AMRO, Avis Europe, Carrefour, France Telecom, Hilton International and News International. www.cequitysolutions.com smartFOCUS is headquartered in Bristol, UK, with offices in the US and continental Europe. Or Write to: info@cequitysolutions.com For the latest thinking in Analyical Marketing, check out our blog at: blog.cequitysolutions.com Contact Details International Offices Headquarters Paris Office Note: This is an ‘original paper’ by smartFOCUS. Cequity ACE is powered by smartFOCUS and Cequity uses this distinguished technology to empower its end-to-end suite of analytical marketing and customer relationship management solutions. Powered by One Redcliff Street Tour Ventôse BRISTOL 2 rue des Bourets

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