BIG DATA ,
little data ,
Any Data
Jesse Boyer, CEO
20+ years of credit union experience
3 different credit unions
1
stcompletely digital credit union
2 vendors/suppliers
A Canadian, 4 boys and a Great Dane
A little bit about me:
Why should you care about what I am going to share
What do all of these
things have in common?
What About Us?
How are you currently communicating to your
members?
Growth in Digital Device Ownership
Source Carlisle & Gallagher; Financial Brand 2015
60% to 70% of sales still occurring in the branch
59% of people now own three devices that they regularly use
52% of consumers are doing more mobile banking than two years ago.
55% of Americans access mobile banking 2-3 times a week and 26%
accessing mobile banking 4+ times a week
Multiple channels to take advantage of online and in the branch
Channel Preferences
Focusing on Omni-Channels
Consumers expect a seamless, real-time, consistent, and engaging experience in all their banking channels.
Preferred Banking Method: Omni
Channel
Mobile phones, tablets and phablets, Oh my!
Rise of the Phablet (Phone Tablet)
Recent upsurge of phablet purchases and usage among all demographic groups.
Because iPhone 6 Plus & mobile video viewing popularity
46% of U.S. consumers are more likely to conduct mobile banking due to larger devices, such as a phablet.
Predicted to have 30% of the market share by 2020
Heavy digital customers are more loyal and hold more products with their
FI.
Source: Bain & Company at BAI Retail Delivery 2014 Source:Google
Focusing on the future member:
Gen Y
Today, there are roughly 75 million consumers between the ages of 18 and 34 in the U.S.
Millennials are the most educated generation in U.S. history
Half of Millennials consider their bank no different than other banks.
Because of the 2007 recession, the four biggest bank brands are among the “least loved” by Millennials.
More than 70% of Millennials have used mobile services within the last 12 months vs.
only 40% for the remaining adult population.
Around 94% of Millennials are active users of online banking.
Millennials are “technology natives”, meaning that they have never experienced a world without social media or smartphones
Break through the noise
How do we relate to Gen Y
How often do Millennials go into their primary financial institutions branch?
According to “The Banking Habits of Professional Millennials”, a Bank Clarity Report
56%
17%
16%
11%
Less than once a month
Once a month
Once a week Not since opening their account
49% 23%
Percent of Millennials that primarily bank on their computer or
smartphone.
63% 37%
57% 43%
Still bank where they did in college
Switched from their college FI
Still bank where their parents do
Chose a different FI from parents before or after
college Of those who haven’t changed since college:
Tailoring Interactions Current
Shortcomings
Using data to:
Zero in on members pain points & goals.
Understanding preferred channel
Give real-time offers, advice
Members needs vs.
being sold to
Lacking
Personalization
Data overload
The foundation for building members’
trust comes in the form of relevant data
Consumers Expectations
Using Data for Targeted Marketing
Starting out: Young Saver, Account Holder
Single/Couples, no kids: 1st time buyers, loans Middle-aged families: Mortgages, Pensions
Empty Nesters: Financial Planning Retired couples: Income Bonds
Older Singles: Term Savers
Breaking Members down by Life Stages
Demographic Shortcomings
They don’t explain:
brand preference
product purchasing
innovation adoption
channel use
technology uptake.
Members today are:
better educated
more individualistic
more marketing literate
more influenced by the convenience of new channels and product offers
“How the customer saves, spends, and transacts is a much more powerful determinant of future financial product purchase and
use patterns than the demographic profile of a customer.”
-Jim Marous, Financial Brand
Strategic Segmentation
Geo-demographic Parameters Financial Parameters
Personal Preferences
Behavioristic Attitude Generational Life Stage
Profile: Entrepreneur Age: 22-42 Tendencies: Financial Complexity
Profile: Donors Age: 62-80 Tendencies: Like to give donations
Profile: Young family Age: 25-42
Tendencies: looking for a mortgage
Profile: Student Age: 18-32 Tendencies: Simple transactions Assets
Credit Rating Liabilities Financial Potential
Assets at another FI Equipment Rate Financial Review Business Owner Response to Marketing
Access Channel
Product/Channel Preference Preferred Payment Method Profession
Marital Status
Age Region
Mass Market Mass Affluent Upper Affluent
Premium Retired General Young Students
Marketing Segmentation
Knowing who to target for a product in a household
Youth Account
Online Bill Pay Small Business Loans
Online Banking Mobile App
Loan Promotion
Youth Account Home Loans
Wealth Management
Auto Loans Youth Account
First Home Classes the bills
I pay the bills
I’m moving I’m moving 300 miles
away for school
Using data to cross-sell current customers
Why cross-selling is critical
It’s cheaper than acquisition
It improves retention, dramatically.
1 product members stay for 18 months on average
3 products, 6.8 years
It increases wallet share.
It broadens your profit base.
It’s a “now” opportunity
66%
41%
53%
22% 17%
46%
Properly Targeting Engaged Customers
Fully Engaged Customers Not Fully Engaged
Source: 2013 Gallup U.S. Retail Banking Survey
The offer could have applied to any customer
The offer was annoying or
intrusive
Already had product with primary bank
5 steps to Effective Cross-selling
Using your data to set up a realistic sales goals and target segmented groups of members.
1. Know your members
2. Measure what they’ve already bought 3. Determine your best cross-sell targets 4. Set realistic goals for each channel 5. Go for gold.
Setting Sales Goals
1. Proactively target your member groups 2. Package a limited set of products that
are easy to understand and communicate to specific member segments.
3. Utilize multiple points of contact, channels, and whatever other opportunities exist for getting the cross-sell message in front of the member
4. Encourage member referrals and cultivate advocates
5. Be creative – especially now. Offer incentives.
Strategies to increase sales today
Emphasizing Cross-Selling
In terms of profits, Bank of America has a 10% operating margin, whereas Wells Fargo tops 40%.
That’s four times the profitability.
Wells Fargo is known for cross selling.
“Go for Gr8.”
According to Wells Fargo, 86% of all new customers purchase a package of products
On average, banks have no more than 10%-15% of new customers purchasing four or more products.
If bundling products, personalize the offering to relate to specific members.
Both have 28 million OLB customers &
around $82B in yearly revenue.
Using this data to get in front of members
Wells Fargo personalized their ATM experience, customized based on customers previous transactions.
They also displays ads on the home screen (makes up 30% of the screen)
that applies to that account.
Opportunities to use data to cross-sell:
• ATM message, Call Center/Branches, Emails
• Mailings, Electronic Brochures, e-Statements
• DigitalMailer’s AdEngine: takes customers’
info and places ad in OLB, website, mobile app and ATM based on products they need
Using Alerts to Connect
If you have alerts, make sure your members know! Use your data to market specific alert opportunities to members who would value the service.
Messaging w/i OLB & Mobile
Frontline Staff
Ad Campaign
Branch & ATM Signage
ATM Receipts
Where do we go from here?
Taking what we’ve discussed to the next level
Issues you may be thinking about
The number one tool for over 95% of CUs is the Excel spreadsheet.
Excel usual means that CUs spend 80% of their time on report preparation and only 20% on the actual analysis needed for decision-making.
Often, CUs will purchase additional modules from their core vendor in the hope of achieving some measure of data integration.
There are many vendors with “analytic”
solutions focused on specific areas such as loan portfolio analysis or teller efficiency.
End goal is to identify tools to integrate all of the data a credit union needs to generate analytics that are broadly meaningful and relevant.
How we can use data today
Where to start? Keep these key points in mind while marching down the path to big data:
Technology will be an important tool for mining the data
Consumer behaviors — across all channels
— will provide many clues
Team members need a wide variety of skills and talents to make sense of the data
Data can reveal new business opportunities, and strategic planning is more powerful with the right insights
Small steps toward bigger goals will bring impressive results
When approaching the idea of Data, remember…
Recognize that data is not a technology problem. Rather, it’s a business opportunity.
Prepare your organization to face the data storm that’s a whirlwind of data, technology, skills,
business models, and economies.
Educate your organization’s
business leaders around both the
value and the how-to of making
data-driven, fact-based business
decisions.
So you’re inspired… NOW WHAT?!
Know your members’
preferences
Identify ways to personalize their experience(s)
Start with data you already have
Approach it in bite-size chunks &
identify some smaller steps
Assess your readiness to formalize data analytics
Take Action!
Any Questions?
Jesse Boyer jboyer@digitalmailer.com
www.digitalmailer.com
