driving growth with marketing analytics

32
Driving Growth with Marketing Analytics Jill Enabnit U.S. Bank

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Page 1: Driving Growth with  Marketing Analytics

Driving Growth with Marketing Analytics

Jill Enabnit

U.S. Bank

Page 2: Driving Growth with  Marketing Analytics

“How can analytics influence

customer satisfaction?”

Page 3: Driving Growth with  Marketing Analytics

“Which marketing programs

ring the cash register –

and how do we find

more like that?”

Page 4: Driving Growth with  Marketing Analytics

“What are we doing about

this Big Data thing?”

Page 5: Driving Growth with  Marketing Analytics

Questions and answers…….

are becoming more

COMPLEX

Page 6: Driving Growth with  Marketing Analytics

ProfitabiliyMatrix

Retention

RegulatoryImpacts

OpenSource

NetLiftModeling

Geogra

phic

Assessm

ents

DesignofExperiments

BigDataPlanning

Triggers

K-M

ea

nsF

acto

r

StructuredSemi-StructuredAndUnstructuredData

IncrementalRevenue

ProcessImprovements

NextBestActionR

eactiveO

pport

unitie

s

NewDataSources

RealTime

SelfServiceReporting

CFPB

LogisticRegression

Clickstream

PathingAnalysis

ClientAdvocacy

DataGovernanceControls

DataModeling

LifeEvents

Solutions

Search&Display

Tra

nsactionA

naly

sis

ServiceToSales

MarketingMixOptimization

Segm

enta

tion

CustomerExperienceFocus

Om

niC

ha

nn

elS

trate

gy

ReturnOnInvestment

IncentivePlanning

$$$

RiskTolerance

Hadoop

OrganicGrowth

Behavioral Economics

Page 7: Driving Growth with  Marketing Analytics

Where to begin?

Page 8: Driving Growth with  Marketing Analytics

III.Is this the rightchoice for the

enterprise?

II.Have we provided

incrementalrevenue?

I.How does itimpact ourcustomers?

Identify simple tenets

Page 9: Driving Growth with  Marketing Analytics

Single View of the Customer

LifeEvents

ChannelUsage

CreditRisk

Segments

ServiceInteractions

BalanceDrivers

MarketingHistory

Note: Sample data fields

ClickstreamPatterns

TransactionBehaviors

Page 10: Driving Growth with  Marketing Analytics

Leveraging customer data for many uses

RetentionTactics

TreatmentStrategies

MarketingActions

Measures& Metrics

CapitalAllocation

Conversational Data

Next product to market?

Out of pattern transactions?

Activate or deepen relationship?

Approve this loan?

Pay this overdraft?

Authorize this transaction?

Likely to attrite?

Appropriate concessions?

Meaningful potential?

Marketing Analytics Data

Expand or contract?

Need a new branch?

Channel investments?

Increasing return?

Champion or challenger?

Met strategic objectives?

Page 11: Driving Growth with  Marketing Analytics

Analytics actively shape the U.S. Bank Customer Experience

“Conversational Data” about customers’

financial objectives & existing relationships

Prioritized offers and consistent treatment

for each customer

Behavioral InsightsMining up to 17

million transactions each day to identify

out-of-pattern behaviors that may

signal needs

Predictive AnalyticsEvaluating customer

value, purchase propensity and

future potential for over 17 million

customers

Relationship Strategies

Converting insights into decisions and

guidance passed to customer facing

employees & systems

Teller Pops24-Hour Banking

ATMs Internet Banking MobileDirect Mail

Branches Specialized Sales

Email

Page 12: Driving Growth with  Marketing Analytics

Blending marketing analytics with needs-based

sales processes allows bankers to provide

better solutions to customers

The Andersons

Model Score: 248

LiSA Segment:“Kids First”

Need:Reduce Debt Service

Mr. Anderson, I’d liketo show you how we can

use a home equity loan to reduce your monthly

payments.

“Conversational Data” allows us to tailor theproduct benefits and

selling process

Michael M.

Model Score: 249

LiSA Segment:“Upscale Investor”

Need:Smooth Cash Flow

Michael, since nearly half of your income comes from bonuses, a home

equity line could improve your cash flow.

Banker

Page 13: Driving Growth with  Marketing Analytics
Page 14: Driving Growth with  Marketing Analytics

I.How does it impact ourcustomers?

II.Have we provided

incrementalrevenue?

III.Is this the rightchoice for the

enterprise?

Page 15: Driving Growth with  Marketing Analytics
Page 16: Driving Growth with  Marketing Analytics

Or a resurgence?

Page 17: Driving Growth with  Marketing Analytics

Continuous improvement to increase confidence

Deepen Defend

Improve Build

CreateHypothesis

DesignTests

ObserveBehavior

MeasureResults

StrategicFramework

Champion/ChallengerTest & Learn

PerformancePeriod

Evaluation

Branch Trade Area Profile MAIN STREET OFFICE Branch Manager: John Smith

101 Main St. NE Parent Market: Minneapolis-St. Paul-Bloomington, MN-WI

Minneapolis, MN 55413 * Assume branch trade area radius of 1.50 miles

Competitor Information & Market Share As of June 30, 2009

Top Competitors USB Market Share

Rank Deposits ($M) Branches

1. Wells Fargo

2. U.S. Bank

3. Ameriprise

4. Marshall & Ilsley

5. TCF Financial

All Other

Total Trade Area

Branch Type Avg. Deposits/Branch ($M) Deposit Growth/Yr. (2003-08)

< Traditional < In-Store < Branch Trade Area Overall Bank Institution < Branch Trade Area Parent Market

Market Demographics

Age of Population Income Race/Ethnicity

Per Capita & Household ($K)

< Branch Trade Area Parent Market < Per Capita < Household < Branch Trade Area Parent Market

Market Analytics & Performance Solutions Page 1 of 3U.S. BANK CONFIDENTIAL - NOT FOR DISTRIBUTION

Diversity Index

(Baseline=100)

Branch

Trade Area

Parent

Market

115 81

Median Age

(Years)

Branch

Trade Area

Parent

Market

31.2 35.8

Growth/Year

(2008-13P)

Branch

Trade Area

Parent

Market

6.0% 3.7%

4

24

43

7

4

1

3$946

$437

$1,281

$19,467

$10,719

$4,704

$1,380

6

21

3 3

1

21

WF USB AMER M&I TCF

$1,531

$1,176

$1,380

$315

$109

WF USB AMER M&I TCF

6.1%

(1.3%)

0.0%

44.7%

81.2%

WF USB AMER M&I TCF

Deposits Branches

24%

8%

Branch Trade Area Parent Market

9% 5%

Branch Trade Area Parent Market

12.1%

21.1%

24.8%

14.5%

11.0%

7.5%

6.8%

2.2%

0-14 Yrs.

15-24 Yrs.

25-34 Yrs.

35-44 Yrs.

45-54 Yrs.

55-64 Yrs.

65-84 Yrs.

85+ Yrs.

$31.4

$36.6$36.8

$73.7

Branch Trade Area Parent Market

50.0%

26.0%

12.0%

7.0%

0.1%

2.0%

6.1%

5.0%

White

Black

Hispanic/Latino

Asian

Hawaiian/

Pacific Islander

Indian/Alaskan

Other

2+ Races

Upgrade treatment strategy and create new hypotheses

Page 18: Driving Growth with  Marketing Analytics

Build the right competencies

Page 19: Driving Growth with  Marketing Analytics
Page 20: Driving Growth with  Marketing Analytics

- Response vs Net Lift

- Triggers with models

- New data sources (Big

& Small)

- Design of Experiments

- Channel Optimization

- Marketing Mix

Be willing to test

something different

Not one „Holy Grail‟ answer!

Page 21: Driving Growth with  Marketing Analytics

And now it's time to

S.T.A.R.T. your journeySavings Today And Rewards Tomorrow……and

understand the

enterprise

impact

Page 22: Driving Growth with  Marketing Analytics

III.Is this the rightchoice for the

enterprise?

II.Have we provided

incrementalrevenue?

I.How does it impact ourcustomers?

Page 23: Driving Growth with  Marketing Analytics

M A P S F E S T 2 0 1 2

Page 24: Driving Growth with  Marketing Analytics

M A P S F E S T 2 0 1 2

Page 25: Driving Growth with  Marketing Analytics

Value can differ significantly across

campaigns

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Alerts

Balance

Product

$420

Campaigns by Number of Contacts and Average Value/Contact

Logarithmic Scale

Average Monthly Contacts

Ave

rage

Val

ue

pe

r C

on

tact

s

Page 26: Driving Growth with  Marketing Analytics

A penny is a penny…..new or not

Page 27: Driving Growth with  Marketing Analytics
Page 28: Driving Growth with  Marketing Analytics

Is the juice worth the squeeze?

Page 29: Driving Growth with  Marketing Analytics

Building incremental revenue one bps at a time…..

Page 30: Driving Growth with  Marketing Analytics

Understanding the enterprise impact of marketing

Page 31: Driving Growth with  Marketing Analytics

III.Is this the rightchoice for the

enterprise?

II.Have we provided

incrementalrevenue?

I.How does itimpact ourcustomers?

Page 32: Driving Growth with  Marketing Analytics