Data-driven online sales: time to get the lead out

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time to get the lead out

Dan Dickinson (@digitalbankguy)

Managing Director, Online & Mobile Banking (Canada) BMO Bank of Montreal

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GROUP Data-driven online sales: time to get the lead out

BMO owns this. Ne la volez pas.

BMO Financial Group

• Established in 1817, BMO

Financial Group serves more than 12 million personal, commercial, corporate and institutional

customers

• We provide a broad range of retail banking, wealth management and investment banking products

through our operating groups:

– Personal and Commercial Banking

• BMO Bank of Montreal (CAN) • BMO Harris (US)

– Private Client Group

– BMO Capital Markets

• $542 billion in assets, 46000 employees, 1500 branches

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time to get the lead out

What I’ll be covering today

• Why we built a leads engine

• Why we made the call to go multichannel

• How it manifests in digital channels vs. assisted channels

• The results

• What we might have done differently

• What will come next

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Why we built a leads engine

• 44% of direct mail is never opened *

• 84% of 25 to 35 year olds have clicked out of a website because of an “irrelevant or intrusive ad” *

• The cost per lead in outbound marketing is more then the cost for inbound marketing *

• For BMO Bank of Montreal:

– Our traditional direct marketing channels were delivering low response rates

– Customer data latency was making our targeted leads irrelevant to the customer

– We did not have a consistent 360 degree view of the customer across channels

• In 2010 we began building a Leads Management Engine, or LME

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Engine (LME) project

• Provide a new and innovative capability to deliver near real-time leads across multiple channels based on the customer profile and purchase likelihood

• Align the presentation of the leads to support the customer conversation / interaction

• Streamline the process of reviewing and discussing leads with a customer (in person or on the phone) from introduction to fulfillment (or appointment)

• Make leads accessibility and fulfillment truly multichannel

– Release 1 focused on inbound leads delivered to the branch and contact centre

– Release 2 focused on ATMs

– Release 3 focused on Online Banking

– Mobile banking release still pending

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Before the technology: the process for

creating a great customer experience

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know the customer

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Defining great customer experience:

identify potential customer actions

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create appropriate message

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Defining great customer experience:

deliver message

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listen

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Defining great customer experience:

action

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and learn

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How the LME works

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holdings feeds the propensity model

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Customer

Demographic information, segment

Holdings

Products, balances, reward schemes

Session context

Location, time, transactions performed, employee role (if branch/CCC)

External services

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LME architecture

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segmentation

17 1 Channel specific segmentation strategies 2 3 4 5 Product lifecycle approach, communicating with the customer at relevant touch points

6 Business rules allow for robust refinement

7 Customer Events

that positively impact customer experience and in-turn customer satisfaction 8 Global control group enables robust reporting at a channel,

segment and cell level

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How a lead appears to branch and

contact centre staff

New

functionality will display the

conversation cue text when the employee hovers over the row with the lead

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tip: “RSP” is Canadianese for “401k”

The list of leads will be prioritized with the best cues at the top A list of

potential

outcomes lets

staff continue with the flow of the

conversation

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Extending leads to self-serve channels

• Since the vast majority of our customer interactions happen at self-serve channels we moved as quickly as possibly to phase two: ATMs

– Note: leads were displayed only at our full-service ATMs, not our basic cash dispensers

• We learned some important lessons during the ATM deployment:

– The offer has to be very simple: there’s no employee to explain the offer to the customer

– The action also has to be very simple: asking for anything more than a yes or no gets tricky

– It’s vital to optimize the speed of the round trip to get the lead…>2 seconds doesn’t cut it

• Moved call earlier in the ATM flow, and added cycles to handle increased volumes

• In May of this year we completed phase three: connecting Online Banking to the LME

– 1.8M active customers

– 700k logins on an average day, >1M logins on a busy day

– Leads delivered via in-line ads and ‘Offers’ section of message centre

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The project team

• The core LME business owners worked on speed, responsiveness, and robustness of the LME with their IT partner team

• My online channel team worked on the placement and responsiveness of ads inside Online Banking with their IT partner team, while my online sales team ensured quality and applicability of offers

• Corporate Marketing (eBusiness) provided creative assets for the ads and

offers, many of which are shared across channels (OLB, bmo.com, ATMs,

etc.)

• Program Delivery team provided project management support

Note: core product systems and online banking are homegrown. LME is IBM Interact. All IT resources are internal.

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How leads manifest in Online Banking

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Customer views their offers…

…and clicks to read

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might have done differently

• Product sales have been good, but haven’t blown the roof off…yet

– Monthly product sales originating from the LME roughly the same as 5-6 branches

– Primarily lending products (credit cards, loans, LOCs) and simple investments (GICs, tax-free savings accounts)

• Good uptake on “customer entrenchment” offers as well

– Roughly 3000 service-related offers accepted per month

– Card balance insurance, NFC payment stickers, card limit increases, etc.

• We’ve learned where the throttles are

– The offer pipeline is managed by marketing and product, who still operate in “campaign mode”…working on moving away from that paradigm toward real-time offer algorithms

– Graphic asset creation for offers takes too long, especially if we have multiple offers…if we offer a product at five different rates to five different customer profiles we have to create and load five graphic assets

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What’s next?

• Mobile banking will be connected to the LME in mid-2014

– as of February our online and mobile channels will run on a single code base, so cost and project time to extend to mobile will be minimal

• Currently working on content management for ads and offer messages

– personalizes offer with customer’s name, etc.

– reduces asset creation overhead

• Continued effort to move from campaign mode to sense-and-respond

– e.g., providing next-best-product for all segments

• Additional sources of data to feed decision engine

– Clickstream data from web session, holdings from wealth / private banking, customer-entered data from PFM suite (budgets, savings goals, etc.)

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time to get the lead out *

Dan Dickinson (@digitalbankguy)

Managing Director, Online & Mobile Banking (Canada) BMO Bank of Montreal