Leveraging Big Data to Drive Bank Customer Engagement and Loyalty

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Presentation at Marketforce 'Future of Retail Banking 2012' in London, UK.

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Leveraging Big Data to Drive Bank Customer Engagement and Loyalty

  1. 1. Leveraging Big Data to Drive Customer Engagement and LoyaltyThe Future of Retail Banking 201228th November, 2012Jim Marous @MarketforceRB #RBconf
  2. 2. Surrounded by ‘Big Data’?        THE   FINANCIALBRAND.COM   London Heathrow Yesterday November 22 Monday @MarketforceRB #RBconf2
  3. 3. What is Big Data? TERABYTES BATCH STRUCTURED RECORDS NEAR TIME UNSTRUCTURED TRANSACTIONS REAL TIME BOTH STREAM @MarketforceRB #RBconf
  4. 4. Big Data Already at Work •  Amazon recommends products customers are likely to buy •  Netflix recommends the next movie their customer would like to see with repeated success •  Pandora describes its service as “personalized radio that plays music you’ll love.” •  LinkedIn identifies, “people you may know”, with extremely high accuracy @MarketforceRB #RBconf4
  5. 5. Big Data Opportunity For Banks •  Banks have customer demographic, financial, and transaction insight that provides a wealth of insight •  Big data is already being used with risk and fraud monitoring successfully •  Banks can reach sophistication in targeting that no other industry can achieve •  Better targeting ensures a better response as well as optimization of the marketing investment @MarketforceRB #RBconf5
  6. 6. Big Data Challenge For Banks •  Consumers have transient relationships with multiple banks •  Banks no longer monopolize a consumer’s financial transactions thanks for PayPal, Amazon, Google, etc. •  Social profile becoming as important for view of preferences, buying patterns and networks •  Not all data is stored and far less is analyzed •  Lack of unified customer view and sharing across enterprise •  Privacy regulations @MarketforceRB #RBconf6
  7. 7. Bank Marketers Are Multitaskers @MarketforceRB #RBconf7
  8. 8. CMO Alignment With C-Suite @MarketforceRB #RBconf8
  9. 9. CMO Alignment With C-Suite @MarketforceRB #RBconf9
  10. 10. Creating A Full Customer Profile @MarketforceRB #RBconf10
  11. 11. Big Data For Engagement & Loyalty •  Acquisition: Propensity models based on customer and prospect insight •  Engagement: Behavior and transaction driven promotions with geo-locational opportunities •  Social Graph Analysis: Customers with most social ‘clout’ •  Sentiment Analysis: Brand and product sentiment •  Cross-Selling: Recommendation engine for next best product, product propensity, etc. •  Customer Experience Analysis: Across channels •  Customer LTV: Current and potential value analysis •  Churn Analysis: Event triggers and attrition patterns @MarketforceRB #RBconf11
  12. 12. The ‘Learning Relationship’ @MarketforceRB #RBconf12
  13. 13. Digital Retargeting @MarketforceRB #RBconf13
  14. 14. Personalized Email Offers @MarketforceRB #RBconf14
  15. 15. PFM Transactions Drive Offers @MarketforceRB #RBconf15
  16. 16. Discover Redemption Reward Recommendations @MarketforceRB #RBconf16
  17. 17. American Express/Foursquare17 @MarketforceRB #RBconf
  18. 18. Non-Financial Loyalty Offers @MarketforceRB #RBconf18
  19. 19. Chase Community Giving @MarketforceRB #RBconf19
  20. 20. Amex Small Business Saturday @MarketforceRB #RBconf20
  21. 21. Movenbank Cred Score @MarketforceRB #RBconf21
  22. 22. CBA Augmented Reality Mortgage App @MarketforceRB #RBconf22
  23. 23. Big Data Crowdsourcing Engagement Fidor Bank First Direct Bank @MarketforceRB #RBconf23
  24. 24. Big Data Maturity Curve Russell Ackoff, "From Data to Wisdom" @MarketforceRB #RBconf24
  25. 25. New Data Paradigm •  Benefits. Most consumers are willing to share their personal data, given sufficient awareness on the benefits of digital identity applications and the implications for data collection and usage. •  Responsibility. Personal data needs to be recognized as a highly valuable asset, requiring an adequately high level of security, and a limitation to the least sensitive data for the targeted use. •  Transparency. By being open and clear about their data processes, organizations effectively mitigate confidence risks and attract more informed customers to their platforms and applications. •  Control. Individuals preferences regarding data sharing differ widely. Easy-to-use options and controls allow individuals to adapt their sharing to their specific needs. @MarketforceRB #RBconf25
  26. 26. MAKE SURE YOU NEED A BIGDATA SOLUTIONReview volume, velocity and varietyneeds @MarketforceRB #RBconf
  27. 27. USE MORE DIVERSE DATANOT JUST MORE DATACombining multiple data sources canyield the most interesting insights @MarketforceRB #RBconf
  28. 28. DATA DOESN’T HAVE ANEXPIRATION DATEKeep data longer than you would thinkyou would need to @MarketforceRB #RBconf
  29. 29. EXPECT DATA TO GROWEXPONENTIALLYAdding mobile and geo-locational dataexpands the amount of insightsignificantly @MarketforceRB #RBconf
  30. 30. DON’T MISTAKE REPORTSFOR INSIGHTAsk if the data is yielding meaningfulinsights that affect the success of thebusiness @MarketforceRB #RBconf
  31. 31. DATA BECOMES MOREVALUABLE THE MORE PEOPLEWHO USE ITBroaden access across the organization @MarketforceRB #RBconf
  32. 32. SOLVE SMALL DATA ISSUESFIRSTEliminate internal data silos beforetackling the larger issue of big data @MarketforceRB #RBconf
  33. 33. Big Data Staged Execution Novantas, 2012 @MarketforceRB #RBconf
  34. 34. Jim Marous SVP, Corporate Development New Control Cleveland, Ohio 1-216-218-4257 @jimmarous BANK MARKETING STRATEGY WWW.JIMMAROUS.BLOGSPOT.COM @MarketforceRB #RBconf34

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