The Global Retail Banking Digital Marketing Report 2013

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How digital technologies, social media and the explosion of data are redefining customer engagement models.

How digital technologies, social media and the explosion of data are redefining customer engagement models.

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  • 1. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL1 The Global Retail Banking Digital Marketing Report 2013 How digital technologies, social media and the explosion of data are redefining customer engagement models EFMA - WIPRO
  • 2. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL2 The EFMA WIPRO Report HIGHLIGHTS Everywhere we meet banks we find that online and mobile banking are at or near the top of their agendas: What services to introduce, how to engage customers, and how to use customer information to personalize marketing are typical questions. There is a high degree of uncertainty because banks are still learning and the digital environment is constantly changing. The study is based on an online survey of nearly 100 banks around the world, and interviews with 15 banks in countries ranging from the United States to India.
  • 3. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL3 Why is Digital marketing important? The vision of banks is that digital channels will be complementary to branches Inge Ampe General Manager Marketing, ING Belgium The blurring between the digital and the offline world will continue, so that marketing will be forced into a 360° approach towards customers and towards analytics. Kartik Jain Executive Vice President and Head of Marketing, HDFC Bank “Banks will need to be present where their customers are...and customers are spending more time on Content, Community and Commerce that is being delivered through digital channels. The challenge for marketers is to engage them in ways that are relevant to the customer and to the medium.”
  • 4. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL4 Vision for digital channels Digital channels are also producing significantly more data which can be used to profile customers, understand their needs, and target them in smaller and smaller segments with the appropriate offers Source: The Global Retail Banking Digital Marketing Report 2013 80%Complementary channels to branches 91%Primary channels for transactions 67%Primary channels for customer service 34%Primary channels for sales and advice
  • 5. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL5 Digital Penetration While the overall global trends are clear, there are nevertheless important differences between countries and regions, particularly when you look more closely at speed of access which affects the services that can be offered. There is a wide difference in Internet use between developed and developing countries, less so in mobile Percentage of individuals using the Internet Source: International Telecommunications Union 2013 77% Developed 31% 128 89 Mobile phone subscriptions per 100 people Developing Developed Developing
  • 6. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL6 Marketing Mix Impact of digital channel in marketing mix of expenses at banks Jessica Niewierra Director Internet and Mobile, ABN Amro Digital marketing offers great opportunities to add context to your communication
  • 7. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL7 The Digital Marketing Capability Index Impact of digital channel in marketing mix of expenses at banks One-to-one personalisation Real-time event driven marketing Test and learn* Measurement of ROMI at campaign level* % of banks with the capability Real-time single customer view Segmentation using customer lifetime value Micro segmentation Predictive analytics 35% 40% 61% 71% 47% 36% 38% 41% Source: The Global Retail Banking Digital Marketing Report 2013 * Approximate average usage by banks in digital marketing
  • 8. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL8 The Digital Marketing Capability Index Only a small proportion of banks are at the highest level of maturity, which is Level 4 Percentage of banks at each digital marketing maturity level Source: The Global Retail Banking Digital Marketing Report 2013 17% Level 1 39% 30% 13% Level 2 Level 4Level 3
  • 9. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL9 The Digital Marketing Capability Index There are some geographic differences in capabilities, but differences by size of bank are not so obvious • Tier 2 banks by asset size are just as capable as Tier 1 banks • Banks in developing countries are lagging behind • Direct banks in our survey are at the highest levels of maturity For banks in higher income countries, the range of capabilities seems to depend more on their branch vs. digital focus, and on their strategic/investment priorities
  • 10. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL10 Assessment of Digital marketing capabilities Real time single customer view capability is relatively low but banks expect this to increase significantly
  • 11. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL11 Test and learn The use of a “test and learn” in digital marketing campaigns is surprisingly low Percentage of banks at each level of test and learn use Source: The Global Retail Banking Digital Marketing Report 2013 68% 0-25% of campaigns 14% 7% 7% 26-50% 76-100%51-75%
  • 12. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL12 Return on marketing investment The measurement of “return on marketing investment” is also still very low Percentage of banks at each level of ROMI use Source: The Global Retail Banking Digital Marketing Report 2013 36% 0-25% of campaigns 7% 4% 25% 26-50% 76-100%51-75% 29% Aggregate level only
  • 13. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL13 Case example: Channel transformation and digital marketing drives significant growth in product sales • Cross-channel collaboration by seamless hand off of leads from online to offline channels • State-of-art digital marketing platform with ability to dynamically target the customers with the right value proposition • Channel agnostic common application platform with instant decision making across products facilitating multi product purchase • Moving to paperless world by use of e- signatures, emailing of welcome kits and electronic disclosures • Guided service delivery to enable help for the phone channel advisor throughout the sales process
  • 14. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL14 Social media and customer engagement Most banks are present on popular services but there is still relatively low use of other social media options. Much less common is the use of user generated content (14% of banks), customer reviews (27% of banks) or blogs (31% of banks). The provision of advisory services and communities on Facebook will grow, but mixed views on transactions Percentage of banks using each type of social media Source: The Global Retail Banking Digital Marketing Report 2013 84% Facebook 27%31% 14% Blogs User-Generated Content Customer Reviews 63% Twitter 54% YouTube
  • 15. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL15 Use of Social in Financial Services Banking transactions through Facebook Credit scoring using social profiles Building community of product users Service and advice through Facebook Offer delivery to Facebook account Product launch promotion Barclaycard, USMoven, USDenizbank, Turkey Swish, SwedenmBank, PolandASB, New Zealand
  • 16. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL16 The potential of ‘Big data’ Big data is still at very early stages in retail banks but a significant increase in deployment is expected Percentage of banks with big data projects in each area Customer event management Enterprise content management Sentiment analysis 65% 46% 35% Current Planned Total
  • 17. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL17 Big data use cases for digital marketing  To build a real time 360 degree view of the customer profile to facilitate multichannel interaction management  For location based marketing, given the proliferation of mobile marketing  To recognize the most valuable customers and their network, and leverage the information for new dimensions of micro segmentation  To identify the right channel and to deliver the right sales value proposition for customers  To improve and innovate on products and services in real time, leveraging the power of social collaboration
  • 18. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL18 Conclusion  Real time event driven marketing & one to one personalisation are areas which need focus  Single customer view and marketing processes are weakest areas  Small banks are not at a disadvantage; direct banks are leaders  Social media now well-established but uncertainty on next steps?  “Big data” is an emerging focus area with high potential impact
  • 19. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL19 For more details please visit the link below: http://www.wipro.com/Documents/the-global-retail-banking- digital-marketing-report-2013.pdf
  • 20. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL20 As a global not-for-profit organisation, Efma brings together more than 3,300 retail financial services companies from over 130 countries. With membership from almost a third of all large retail banks worldwide, Efma has proven to be a valuable resource for the global industry, offering members exclusive access to a multitude of resources, databases, studies, articles, news feeds and publications. Efma also provides numerous networking opportunities through work groups, online communities and international meetings. For more information: www.efma.com About Efma
  • 21. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL21 About Wipro Ltd. About Wipro Ltd. Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation and an organization wide commitment to sustainability, Wipro has a workforce of 140,000 serving clients across 57 countries. For more information, please visit www.wipro.com.
  • 22. © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL22 Thank You ©Wipro Limited, 2013. All rights reserved. For more information visit www.wipro.com No part of this document may be reproduced in whole or in part without the written permission of the authors. Wipro is not liable for any business outcome based on the views presented in this document. For specific implementation clients should take advise from their client engagement manager.