From Complexity to Client Centricity - Business Analytics nel settore bancario

(1)

“From Complexity to Client

Centricity”

- Business Analytics nel

settore bancario

IBM Forum Milano, 22 Giugno 2011

Francesca Gandini

IBM Associate Partner, Banking Sector

[email protected]

(2)

Un recente studio MIT Sloan Management Review e IBM Institute for Business Value

dimostra la correlazione positiva tra l’utilizzo dei Business Analytics e le performance

delle aziende intervistate

53% of top performers use analytics to guide

strategic decisions

Source: IBM IBV and MIT Sloan Management Review.

Top Performers are more likely to use an analytic approach over intuition* Organizations that lead in analytics outperform those who are just beginning to adopt analytics

(3)

Il settore bancario in particolare sta investendo in diverse iniziative di

Business Analytics, soprattutto di area Marketing e Commerciale, per

sostenere la creazione di profitto a lungo termine

Building sophisticated insights in client needs Innovate pricing models to be more aligned with client segments and bundling Optimize channels to maximize satisfaction while balancing services and prices

+14%

+11%

+13%

(4)

4

Le banche intendono investire per arricchire l’attuale segmentazione demografica

della clientela con informazioni sui bisogni e comportamenti d’acquisto, per

identificare il valore del cliente e nuove fonti di profitto

Modernize client segmentation

techniques

3% 3% 3% 2% 6% 4% 8% 7% 21% 23% 19% 16% 32% 34% 32% 38% 36% 38% 44% 31% 0% 20% 40% 60% 80% 100% Mature Emerging Mature Emerging

Which client segmentation method

lacks information today?

Clien

t Need

s

Centric

Behavior

Segmentation

Completely Disagree Completely Agree Completely Disagree Completely Agree Neutral

Source: IBM IBV in partnership with the Economist Intelligence Unit surveyed the Top 200 banks (28% Americas, 36% Europe and 36% Asia and Australia) on “How will banks compete in the new economic environment”

(5)

La maggior parte delle banche intervistate ha in atto la revisione delle strutture di

prezzo, per adottare modelli più flessibili e modulari in grado di aumentare la

fidelizzazione dei clienti

What is Needed for Better

Pricing Models?

% 31% 13% 36% 25% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Standard across the board, regardless of our

client relationship

Prices to reflect client holdings across multiple

deposit and loans products

Mature Markets

Current Future Current Future

0% 1% 3% 0% 14% 7% 11% 12% 19% 20% 26% 26% 36% 32% 36% 31% 31% 40% 24% 31% 0% 20% 40% 60% 80% 100% Mature Emerging Mature Emerging Completely Disagree Completely Agree S e lf S e rv ic e P ri c ing B undl e s 1 G ra nul a r Pr ic in g 1 Completely Disagree Completely Agree Neutral Completely Disagree Completely Agree Neutral

Innovating pricing models to be more

closely aligned with client segments

(loyalty and profit)

1 Granular Pricing (i.e., customized prices developed individually based on individual client needs) 1 Self Service Pricing Bundles that let clients chose a bundle of products and channels at pre-set prices

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Anche nel modello distributivo le banche intendono adottare un approccio più

orientato al cliente, quando il livello medio di soddisfazione per canale appare

ancora “medio”, ed abilitare la raccolta di ulteriori informazioni di interazione

1.0 2.0 3.0 4.0 5.0 1.0 2.0 3.0 4.0 5.0 Mobile Social Media Branch Call Center ATM Internet

Predicted Channels Use

C u rr e n t le v e l o f C u st om er S a ti s fac ti on

No change High Change

Low satisfaction High satisfaction Average response score

“Social media is at the same stage as the internet in the early 90s”, Senior Executive Top 50 retail bank

Predicted Channel Use and

Current Levels of Satisfaction

“Thanks to Web Analytics we succeed in gathering further info and insight on client interaction and e-campaign effectiveness”, Senior Executive Top 50 retail bank

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La strategia IBM per i Business Analytics è completamente allineata a quella dei

propri clienti e si basa su un portafoglio completo di soluzioni e competenze

specifiche

Autonomic Operations Developer Productivity Deep Compression pureXML pureScale Pervasive Content Stream Computing Content Analytics Advanced Case Management

Workload Optimized Systems Social Analytics/Consumer Insight

2011

2005

Decision Management

• More than

$14B

in Acquisitions

Since 2005

• More than

10,000

Technical

Professionals

• More than

7,500

Dedicated

Consultants

• Largest

Math Department

in Private Industry

• More than

27,000

Business

Partner Certifications

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“With greater control over

marketing activities efficiency,

I can now better allocates

budget and resource to each

effort, driving the best

profitability.”

Business challenge

In a highly competitive financial market, Banca Carige needs a more sophisticated segmentation approach of its customer to drive more efficient marketing campaigns and allocate commercial budget resources accordingly to maximize profitability.

Banca Carige sees the opportunity to reinvent customer relationship, adopting new CRM analytical models and tools, in order to enlarge client knowledge, increase customer satisfaction and manage relationship discontinuity.

Solution

Adoption of an innovative CRM solution, based on advance analytics methodology and tool developed by IBM Zurich Laboratory, aimed to define customer current and potential value (customer equity and lifetime value - CELM).

The CELM solution is based on a CRM Datamart, in which all significant client data are collected for analytical purpose: algorithms measure multiple customer behaviors variables (demographics, historical value, loyalty…) and data mining functionalities support propensity/churn analysis, to determine customers’ value.

The predictive modeling (Customer Dynamics) embedded in the CELM solution evaluates the impact of campaigns and assess incremental customer value generated, planning commercial activities in the medium terms accordingly

Benefits

Integrated view and deeper knowledge, analytical based, of bank’s customer value and buying behaviors, increasing customer satisfaction and optimizing commercial activities ROI: +6x in client acquisition; +2bp in product sales

increased efficiency in contact management (better targeting and higher list refresh frequency)

increase in campaign redemption (first outcomes in pilot areas)

Solution components

:

IBM GBS BAO consulting services in AA&O IBM GBS Research asset (CELM) and consulting support IBM GBS FSS industry expertise IBM Infospherewarehouse for CRM Datamart and ETL

Advanced analytics estimates customer lifetime value for banks and optimize commercial actions

accordingly in respect of budget availability, improving customer insight and campaign effectiveness

Customer segmentation according to lifetime value and campaign optimization

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BNPP faces a number of challenges, in offer and price management, mainly due to a very competitive market:

Offer flexibility to marketing for creating more pertinent and complex packaged offers Improve the offer management process from creation to distribution

Maximize direct involvement of product managers on offers creation process over IT Production, in real-time, of offers tailored to customer profile and requirements

(pricing / filtering)

Ease tariff definition process to increase the number of yearly revisions (one per year today)

Solution

IBM supported BNPP in the implementation of an integrated Offer Flexibility and Dynamic Pricing Solution based on the following functionalities:

product catalog (MDM for PIM) to support offer creation process (bundling, eligibility and pricing rules and offer campaign)

pricing rule engine for dynamic pricing estimation and deploy, according to client eligibility, product bundling, channel selection, etc options selected

pricing configurator, integrated in the Commercial Desktop, to offer near real time composition and pricing negotiation with customer based on relationship

Benefits

Offers innovation (ie: new personal services bundled with traditional check accounts) Reduction in time to market for new offers

Increase in customer satisfaction (personalized offers and pricing) and profitability leveraging price elasticity

Solution components

:

IBM GBS BAO consulting services in AA&O IBM GBS FSS industry expertise IBM MDM for PIM (product Catalog) IBM ILOG BRMS (rule engine)

primaria banca francese

Product Catalog and Rule Engine enable an integrated and flexible product bundling and pricing

management processes to support offering innovation and personalization and the reduction in time

to market for new offers

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Reengineering of current campaign management processes also through the adoption of a new platform, able to support an integrated approach to outbound and inbound actions in a multichannel environment (branch office, call center, mailing, web and sms).

Improve campaign targeting, according to client micro segmentation.

Support increasing campaign volumes and complexity (customer life-cycle campaigns)

Solution

Adoption of IBM UNICA solution and consulting capabilities to support the

implementation of a new campaign management approach, based on enhanced client segmentation for improve targeting according to customer life-cycle and on the

outbound/inbound integration on all the contact channel.

The solution supports a greater volume of more complex campaigns with greater performance levels and allows for a higher degree of flexibility and engineering in designing recurring campaigns.

Thanks to the new approach and solution BBVA has a full vision of its customers profile and contacts hystory

Benefits

Increase in performance: + 200 campaigns monthy Increase in contacts: 6 to 10 milion contacts monthly + 500 recurring active campaign

internal CoC: 15 skilled senior end users

Solution components

:

IBM GBS BAO consulting services IBM GBS FSS/CC&I industry expertise IBM UNICA

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