switch from campaign management to event based marketing · switch from campaign management to...

Switch from Campaign Management to

Event based Marketing ?KBC Bank & Insurance

Eric VandenbemptJune, 2005

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Agenda

Introduction of KBC Bank & Insurance

KBC’s Strategic goals

CRM and relationship banking

Commercial approach

Event Based MarketingMarketing approachProgram goalsProcessPilotNext steps

Contact details

KBC Bank & InsuranceIntroduction

Switch from campaign managementto event based marketing?

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KBC Group NV

KBC Group NVKBC Group NV

KBCInsurance

KBCInsurance

KBCAsset

Management

KBCAsset

Management

Kredietbank SALuxembourg

EPB*

Kredietbank SALuxembourg

EPB*KBC BankKBC Bank GevaertGevaert

100%100% 100% 100% to 100%

KBC Financial Products

CenteaCBC Banque

KBC Securities

CSOB BankK&H BankKredyt BankNLB Bank…

CSOB Pojist'ovna (CZ)CSOB Poistovna (SK)K&H Life (Hu)K&H General Insurance (Argosz - HU) Warta & Warta Vita (PL)NLB Vita (SL)...

FideaSecura

* European Private Bankers

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KBC Group NV : Key financials

Balance sheet total : 282 bn euros (31-Dec-04)Capital : 12 bn - total risk equity: 21 bnCustomer deposits : 164 bnCustomer loans: 111 bnTechnical provisions, insurance : 17 bn

Net profit :Pro forma 12M04 : 1 682 m euros (ROE : 14%)

Solvency levels (pro forma 31-Dec-04) :Tier 1, banking : 10.1% Solvency margin, insurance : 389%

Headcount : ca. 51 000Customers : ca. 11 000 000

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Geographical presence in Europe

Top-3 bank/insurance player in CEE-5Czech RepublicHungarySlovakiaPolandSlovenia

Top-3-player in BelgiumRetail bancassurancePrivate bankingCorporate banking

European private banking network :>100 locations across 9 other countriesFrance and MonacoGermanyItalyLuxembourgNetherlandsSpainSwitzerlandUK

Selective corporate banking network :selective presence in 6 countries outside Belgium and CEEFranceGermanyIrelandNetherlandsSpainUK

KBC Bank & InsuranceStrategic goals


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Mission statement

KBC Bank & Insurance has the ambition to be an independent, medium sized, multi channel bank insurer, with retail customers and SME as target segmentation groups, in selected European countries, based on its expertise in investments, portfolio management and financial markets, with high profit targets, based on efficiency, client centric approach and risk management.

To obtain the strategic targets the mid term commercial accents of KBC’s Retail & Private banking are relationship management, increase the customer satisfaction, increase efficiency and decrease the risks.

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Belgian market environment

Heavy competitive environmentNarrow margins on saving accounts and consumer loansLoss in domestic paymentLess costumer loyaltyLegal obligations. . .

Decrease of customer satisfaction after 1998’s merger (adjust negative evolution in 2004)

KBC Bank & InsuranceCRM and relationship banking


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CRM and relationship banking

Customer centric organizationSet up mid 90sOperational > client session in transactionsCommercial > relationship banking

Customer relationship managementInformation on customerUnderstanding ones customerManaging ones business

Analyses customer informationData mining via SAS Enterprise MinerTM softwareCustomer segmentation and profile banking

KBC Bank & InsuranceCommercial approach


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Campaign management

Campaign managementSet up in 2000Supported by campaign management toolCommercial support to branches (target groups, central mail, …)

WeaknessesNot customer-initiatedProduct push type campaignsHeavy manual interventionUnstructured response and success trackingInefficient channel usage

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Conclusion

Heavy competitive environment

Increase costumer satisfaction

Attention to customers needs

Adaptation of commercial approach

Event based marketingSet up of program

KBC Bank & InsuranceEvent Based Marketing


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Event Based Marketing

Marketing approach

Program goals

Process

Pilot

Next steps

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Marketing approach

EBM approach to conduct marketing activities

Campaign effectivenessCostumer-initiatedHigher responsePosibility of testingOngoing adjustments for continuous improvement

Greater productivityCampaigns are set up onceDaily run without manual intervention


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Marketing approach

Process efficiencyStructured response

Channel optimisationEach channel can focus its resources on business priority

Costumer oriented and greater loyaltyCustomer needs – pull, no pushContact management to avoid over-contactsSatisfied customersGreater loyalty and profitability


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Program goals

Direct goalsIncrease share of walletin key customer segmentReduce marketing cost

Indirect goalsIncrease customer satisfactionIncrease sales (hits)Support commercial approach in branchesGain more benefit of (limited) commercial timein branches


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Process

Set up of processIdentify industry-specific business opportunitiesUse customer initiated events to increase personalized bankingQualify events in commercial leads Customised communication at the most opportune timewhen the customer is likely to have a needPrompt action via the most appropriate channelBranch organization supportFollow up and evaluation


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ProcessEvent Based Marketing

Eventdetection

&qualification

Report&

evaluation

Action&

leadfollow up

LeadPrioritisation& scripts

Event based marketing :Offering of the right solution

to the right person (customer)on the right time

through the most appropriate channel

Step 1 Step 2 Step 3 Step 4

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Process

Event detection Life cycle / Moments of TruthCustomer behaviourContract related (expiry date, end of loancontract, …)Interaction with customer (web, ATM’s, …)Operational systems (incoming/outgoing payments, …)External events (market news, actions of competitors, …)


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Process

Event qualificationConstraint on the type of customerCustomer segmentation modelCustomers profile(relationship to customer needs)AgeContact frequencyPotential ROIEase of execution


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Process

Examples of eventsDeposit start / stopDormant accountFirst internet transactionFirst use of credit cardLoan simulation transaction on Internet bankingWithdrawel unusual amountTransfer to other bank/insurance companyFirst jobGraduationBuying foreign currency. . .


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Process

Lead prioritisationCustomer contact frequencyStrategic valueCapability of branch

Type of commercial leadsTime critical leadLess time critical leadAdditional information


Ef fec

t ive

nes

s %

Time - Days

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Process

ScriptsOutcome of the ‘campaign’Business objectives to achieveCommunication (content, channel, …)Multi step approachhow to (re)act on customer response(s) Future considerations


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Process

ActionReal time / online commercial actionDaily planning and (de)briefingCommercial action of branch employees

Lead follow upReal time follow upMulti step transactions


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Process

Example of online lead generation (simplified)


Customerinitiates atransactionat branch orcall center

Transactionis to buy foreign

currency

Customerinformation

Vlead

priority

Customeraccepts

close of sale

Propositionof

travelinsurance

Automaticallyevent capture

for crossselling

opportunity

Client session

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Process

Example of moment of truth lead (simplified)


Customerinitiates loan

simulationon internet

banking

Eventcapture

Lead generation

Customerdoes (not)

acceptsale

proposition

Propositionvia E-mail

to customer

Customerinformation

Commerciallead tobranch

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Process

ReportOnline reporting on leads(E2E-monitoring of commercial leads – branch application)Reporting sales success> branch manager> regional manager

EvaluationProcess and script evaluationAdjust approach (multi step, scripts, event generation and qualification, channel usage, …)Learning organisation


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Pilot & milestones

2004Consultancy and studyDefining commercial and organizational conceptDefining data model and infrastructure

2005ICT development of front end transactionbranches (Action and lead follow up)Event qualification, lead prioritisation and reporting through ‘end user computing’Implementation in 3 pilots(17 branches, organized in 3 branch clusters )Starting with 15 commercial leads


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What’s next ?

2005Co-existance of event based marketing and other commercial transaction (planning, commercial information on customer, calender, …)Evaluation of pilots (after 6 months)

2006(in house?) ICT development> Leads prioritization system> Connection to output infrastructure> ReportingBusiness implementation> Extend number of branches> Introduce new leads

Success story?Come and hear at

next year’s SAS Forum!?


Success story?Come and hear at

next year’s SAS Forum!?

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Contact details

Eric Vandenbempthead of departmentMarketing Services

Address : KBC Bank & InsuranceMKS – Marketing ServicesEric VandenbemptBrusselsesteenweg 100B-3000 Leuven

Phone : +32 (0)16 86.12.12

Mobile : +32 (0)495 59.67.06

Email : [email protected]

Website : www.kbc.be

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