TARGET

MARKETINGANALYTICS

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EXECUTIVE SUMMARYThe popularity and adoption of Marketing Analytics has gained traction in the last decade, aided by the influx of new processes and technologies that has allowed greater clarity and visibility into marketing programs.

While some of the bigger banking institutions have embraced this new trend, Marketing Analytics still remains a low priority among smaller banks and financial institutions. Xerago believes that this low rate of adoption is due to a lack of understanding of the impact of data on marketing and that there exists a wide spectrum of possibilities that currently remain untapped or underutilized by banks.

This whitepaper is geared to help bank marketing professionals understand the scope of marketing analytics and also on how it can contribute value to the various factions of a bank’s marketing activities.

THE LOW RATE OF ADOPTION OF MARKETING TECHNOLOGY IS DUE TO A LACK OF UNDERSTANDING OF THE IMPACT OF DATA ON MARKETING

possibilities that currently remain untapped or underutilized by banks.

This whitepaper is geared to help

understand the scope of marketing

MARKETING TECHNOLOGY CUTS ACROSS CHANNELS, DEVICES AND SILOS AND STRIVES TO PRESENT A VIEW OF THE BANK’S COMPLETE MARKETING ECOSYSTEM

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OVERVIEW: WHAT IS MARKETING ANALYTICS?Marketing Analytics is broadly defined as the practice of measuring, managing and analyzing marketing performance to maximize the effectiveness of and ROI from the said marketing activities. Marketing Analytics is often equated with Web Analytics in some schools of thought. Contrary to this opinion, Marketing Analytics is not specific to web, mobile, CRM or any one channel. Rather, it cuts across channels, devices and silos and strives to present a view of the bank’s complete marketing ecosystem.

This ‘whole picture’ approach to marketing empowers marketers to look beyond the myopic view of a single channel or metric and acquire a thorough understanding of their marketing performance in relation to their marketing goals. Marketing Analytics gives marketers the capabilities to zero in on specific areas of focus and at the same time assess the overall impact of their interventions across their marketing terrain and goals.

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WHAT DOES THE MARKETING ANALYTICS LANDSCAPE LOOK LIKE FOR BANKING?The Analytics landscape is vast and covers a huge range of technologies. This complex ecosystem is easy to get lost in and sometimes marketers tend to lose sight of the which rudimentary elements are and are not relevant to their marketing needs. A simplified version of the Analytical Landscape may comprise of the following.

THE COMPLEX ANALYTICS ECOSYSTEM IS EASY TO GET LOST IN

MARKETINGANALYTICS

DATA SOURCES ● Data Marketplaces ● Personal Data

ANALYTICS ● Analytics Solutions ● Data Visualization ● Statistical Computing ● Social Media Analytics ● Sentiment Mining and IT Analytics ● Location/People/Events ● Big Data Search ● Real Time Analytics ● Crowdsourced Analytics ● SMB Analytics

APPLICATIONS ● Ad Optimization ● Publisher Tools ● Marketing ● Industry Applications ● Application Service Providers

INFRASTRUCTURE ● Infrastructure ● No and New SQL Databases ● Hadoop Infrastructure ● Massively Parallel Processing (MPP) Databases ● Management/Monitoring ● Storage and Clustering ● Crowdsourcing ● Security and Transport

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THE IMPORTANCEAND RELEVANCE OFMARKETING ANALYTICS TO THE BANKINGINDUSTRYBanks possess incredible amounts of data and Marketing Analytics is the perfect panacea that helps sift through the clutter and help take decisions with confidence. Increased profitability can be achieved through articulate decision making and

REAL TIME STRATEGIZING TO BECOME MORE COMPETITIVE, MITIGATE RISK AND GAIN AN EDGE IN THE MARKET IS NOW POSSIBLE THANKS TO ANALYTICS

by consolidating all relevant data in an accurate and timely manner. This is the key to achieving quick and effective business decisions and the relevance and purpose are highly congruent.

Real Time strategizing to become more competitive, mitigate risk and gain an edge in the market is now possible thanks to Analytics. Some areas where analytics can find most relevance within the banking ecosystem are:

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● Customer Targeting

● Reflecting Customer Behavior

● Segmentation

● Right offers for the right audiences using the right channels

● Forging and maintaining customer relationships

Analytics are empowering a paradigm change wherein processes will be created with a more strategic outlook in mind and strongly backed with evidence, rather than intuition and other archaic methods that unfortunately still run rampant in certain organizations.

Banks possess incredible amounts of data and Marketing Analytics is the perfect panacea that helps sift through the clutter and help take decisions with confidence. Increased profitability can be achieved through articulate decision making and

by consolidating all relevant data in an accurate and timely manner. This is the key to achieving quick and effective business decisions and the relevance and purpose are highly congruent.

Real Time strategizing to become more competitive, mitigate risk and gain an edge in the market is now possible thanks to Analytics. Some areas where analytics can find most relevance within the banking ecosystem are:

● Customer Targeting

● Reflecting Customer Behavior

● Segmentation

● Right offers for the right audiences using the right channels

● Forging and maintaining customer relationships

Analytics are empowering a paradigm change wherein processes will be created with a more strategic outlook in mind and strongly backed with evidence, rather than intuition and other archaic methods that unfortunately still run rampant in certain organizations.

MARKETING ANALYTICSCHALLENGESMarketers can expect to come across these challenges when taking up the Marketing Analytics proposition.

● VOLUME, VARIETY AND SPEED

As discussed earlier, an omni-channel banking experience produces data from various sources and in various formats. Due to the sheer volume, variety and the speed at which data comes into the system, there is always a risk of data handling marketers getting overwhelmed. Doubts may arise in the minds of the marketer as to which data are relevant and which aren’t and this is complicated by the fact that the incoming data is multiple formats. The imposing bulk of the data can also complicate quick and efficient collation and analysis of this data.

● DEALING WITH POOR QUALITY OF DATA

The fundamental unit of omni-channel marketing is data. Unfortunately not all data is accurate, relevant or even timely. Bad data can lead to missed and mistimed opportunities and ultimately even customers. Banks must be aware of the fact that chunks of bad or non-usable data are inevitable in the flow of data and must take care to nip the inflow of such data into more critical processes such as the analysis stages. Case in point, research from Experian indicates that inaccurate and poor quality data has a direct bottom-line impact on 88% of the companies who use them a majority of whom coincidentally also post high wastage of marketing spends.

BAD DATA CAN LEAD TO MISSED AND MISTIMED OPPORTUNITIES AND ULTIMATELY EVEN CUSTOMERS

● FINDING THE RIGHT FIT

Marketing analytics solutions are dime a dozen and there are solutions to fit almost every conceivable budget in the market. There are well documented cases where analytics implementations have failed spectacularly due to improper planning, myopic cost fueled outlook and a general lack of reconciliation between the solution and the marketing goals to be achieved.

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Marketers can expect to come across these challenges when taking up the Marketing Analytics proposition.

● VOLUME, VARIETY AND SPEED

As discussed earlier, an omni-channel banking experience produces data from various sources and in various formats. Due to the sheer volume, variety and the speed at which data comes into the system, there is always a risk of data handling marketers getting overwhelmed. Doubts may arise in the minds of the marketer as to which data are relevant and which aren’t and this is complicated by the fact that the incoming data is multiple formats. The imposing bulk of the data can also complicate quick and efficient collation and analysis of this data.

● DEALING WITH POOR QUALITY OF DATA

The fundamental unit of omni-channel marketing is data. Unfortunately not all data is accurate, relevant or even timely. Bad data can lead to missed and mistimed opportunities and ultimately even customers. Banks must be aware of the fact that chunks of bad or non-usable data are inevitable in the flow of data and must take care to nip the inflow of such data into more critical processes such as the analysis stages. Case in point, research from Experian indicates that inaccurate and poor quality data has a direct bottom-line impact on 88% of the companies who use them a majority of whom coincidentally also post high wastage of marketing spends.

● FINDING THE RIGHT FIT

Marketing analytics solutions are dime a dozen and there are solutions to fit almost every conceivable budget in the market. There are well documented cases where analytics implementations have failed spectacularly due to improper planning, myopic cost fueled outlook and a general lack of reconciliation between the solution and the marketing goals to be achieved.

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SOLUTIONS TO OVERCOME THE ABOVE CHALLENGES● Even before getting into the data

collection phase, fundamental knowledge of the various channels in play and the different types of data generated by them can go a long way in reducing the complexities that arise from handling the marketing data. While this may seem simplistic, knowing what data looks like is the first step to implementing a highly coherent analytic marketing infrastructure. Clarity into how data looks like can lay the groundwork for what type of data is relevant and what isn’t. Combining the above intelligence with facilitative tools and processes can help address the challenges that can arise out of data complexity. Tools such as the most basic and free Google Analytics to more premium, multi-channel analytics tools such as Hubspot and Eloqua can provide capabilities to collate, filter and vet the incoming data stream.

● Even the most sophisticated of data analysis technology can be let down by bad data quality. While a significant portion of companies use manual methods for data checks, in the case of banks, the multi-format nature and volume of data as described before makes it highly crucial that specialist software are utilized either at the point of capture to scrub and validate the data. IBM InfoSphere Information Server, Experian QAS Clean and SAS’s DataFlux suite are some of the specialist tools that are available for data cleansing. While the actual process of data cleaning is beyond the scope of this whitepaper a typical data cleaning approach may involve analysis, transformation workflow, verification, transformation and clean data backflow.

CLARITY INTO HOW DATA LOOKS LIKE CAN LAY THE GROUNDWORK FOR WHAT TYPE OF DATA IS RELEVANT AND WHAT ISN’T

● A very simplistic answer to choosing the right analytics solution involves the reconciliation of three key parameters, namely; business requirements (goals, strategy, reporting etc.), technical requirements and stakeholders (internal and external to the organization). All of the above considerations must be closely matched with the capabilities of solution to find one with the best fit.

Creating an in-house data capture and analysis capabilities would be an ideal way to address the above mentioned marketing data challenges. However for most banking organizations this is still a luxury and is seldom accommodated within the existing infrastructure. As an alternative, a good marketing analytics partner with a comprehensive analytics framework could help guide a bank through the marketing analytics adoption and manage the bulk of the raw data crunching and insights extraction process.

● Even before getting into the data collection phase, fundamental knowledge of the various channels in play and the different types of data generated by them can go a long way in reducing the complexities that arise from handling the marketing data. While this may seem simplistic, knowing what data looks like is the first step to implementing a highly coherent analytic marketing infrastructure. Clarity into how data looks like can lay the groundwork for what type of data is relevant and what isn’t. Combining the above intelligence with facilitative tools and processes can help address the challenges that can arise out of data complexity. Tools such as the most basic and free Google Analytics to more premium, multi-channel analytics tools such as Hubspot and Eloqua can provide capabilities to collate, filter and vet the incoming data stream.

● Even the most sophisticated of data analysis technology can be let down by bad data quality. While a significant portion of companies use manual methods for data checks, in the case of banks, the multi-format nature and volume of data as described before makes it highly crucial that specialist software are utilized either at the point of capture to scrub and validate the data. IBM InfoSphere Information Server, Experian QAS Clean and SAS’s DataFlux suite are some of the specialist tools that are available for data cleansing. While the actual process of data cleaning is beyond the scope of this whitepaper a typical data cleaning approach may involve analysis, transformation workflow, verification, transformation and clean data backflow.

● A very simplistic answer to choosing the right analytics solution involves the reconciliation of three key parameters, namely; business requirements (goals, strategy, reporting etc.), technical requirements and stakeholders (internal and external to the organization). All of the above considerations must be closely matched with the capabilities of solution to find one with the best fit.

Creating an in-house data capture and analysis capabilities would be an ideal way to address the above mentioned marketing data challenges. However for most banking organizations this is still a luxury and is seldom accommodated within the existing infrastructure. As an alternative, a good marketing analytics partner with a comprehensive analytics framework could help guide a bank through the marketing analytics adoption and manage the bulk of the raw data crunching and insights extraction process.

BUSINESSREQUIREMENTS

TECHNICALREQUIREMENTS

STAKEHOLDERS

TOOL

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BENEFITS OF MARKETING ANALYTICSWhile we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

ADOPTING AN ANALYTICS DRIVEN MARKETING APPROACH CAN HAVE A POSITIVE IMPACT ON A BANK’S KEY MARKETING FUNCTIONS

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

While we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

HIT

HIT

HIT

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

While we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

While we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

While we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

While we touched upon the benefits of Marketing Analytics at a very simplistic level, in this section we look at them in more detail and also identify some very specific areas and examples on how Marketing Analytics has been able to influence radical change in banks all over the world.

● MARKETING ANALYTICS HELPS GAIN A 360 DEGREE VIEW OF CUSTOMERS ACROSS CHANNEL INTERACTIONS

With banking now possessing a footprint across multiple channels, marketing analytics helps the marketer behind the bank to identify how, why and when a customer interaction took on a particular channel. This can cover anything from the traditional channels such as the branch and the ATM to the more new channels such as Online, Mobile, and Social etc.

● CAMPAIGN MANAGEMENT

Data is the foundation of a campaign’s logic hence, data derived insights can help banks to create and manage omni-channel, multi-wave campaigns. In Xerago’s own experience, many such examples come to the fore like a major Indian bank that took the stepping stone into analytical marketing.

The bank embraced the marketing analytics proposition for its outbound campaigns and was soon able to run streamlined, multi-channel, targeted campaigns. The bank was able to significantly increase campaign velocity, target hit rate and induce a record level of response rates; a feat that was previously impossible due to their lack of data enabled marketing foresight.

● PERSONALIZED MARKETING POWERED BY MARKETING ANALYTICS

An offshoot of being able to predict customer behavior is the ability to personalize communication, timing and delivery of products and offerings based on customer preferences. Marketing Analytics is a key enabler of closed loop personalized marketing.

● MARKETING OPERATIONS

Analytics can help marketers increase operational efficiency. A bank utilizing historical omni-channel analytics can benefit from enhanced insight, by prioritizing and aligning resources and objectives, streamline the campaign production processes and centralize their digital assets for better leverage.

● REAL-TIME CUSTOMER ENGAGEMENT POSSIBLE

In an era of impatient customers, real time decision making and responding are made possible with Marketing Analytics. Analytics helps mitigate the various limitations inherent in different channels and level the playing field, enabling a consistent customer communication strategy.

● CHURN AND LOYALTY MANAGEMENT

Marketing Analytics allows deeper insight into customer satisfaction and loyalty levels. For example, if data indicates that a customer is non-responsive to campaigns and has significantly his/her usage of the bank’s services or has stopped using their cards entirely the bank can use this to infer that the customer is dissatisfied with the current level of service and can undertake a personalized campaign to try and salvage the relationship at the earliest. The bank can create tailored messaging that offers relevant products and services to the customer. In this way a customized retention strategy can be formulated at an individual level. A strategy on similar lines can also contribute to design effective loyalty programs using insights on customer preferences and loyalty parameters.

Case in point, Xerago was able to re-architect a radical turnaround of a major Middle Eastern bank’s marketing cycle times and introduce massive cost savings. Using the bank’s historical channel data, Xerago was able to identify the preferred channels of their customers and the bank was able to allocate and manage resources efficiently greatly decreasing time to market overheads.

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CAVEATS OFMARKETING ANALYTICSApart from the challenges discussed above, marketing analytics comes with its own set of intrinsic caveats that every bank marketer needs to be aware of, prior to taking the analytics plunge.

● PREDICTABILITY

Some organizations make the mistake of relying on marketing analytics and then have unrealistic expectations of 100% accuracy. This is highly risky and in most cases leads to less than desired expectations and disillusionment with analytics.

● TOO MUCH DATA

Marketing Analytics always carries the inherent risk that the sheer quantity of data could hide any valuable insights or in some cases not contain any insights at all. The complexity in data analysis and insight extraction is directly proportional to the level of detail required, meaning the more insights required the greater the complexity of the activity. And with huge amounts of data in hand this task becomes highly time consuming.

USING ANALYTICS BANKS CAN PRESENT THE RIGHT OFFERS TO THE RIGHT CUSTOMERS AT THE RIGHT TIME GREATLY INCREASING THE ODDS OF RESPONSES

In addition to the above generic benefits, adopting an analytics driven marketing approach can have a positive impact on a bank’s key marketing functions and goals some of which are outlined below:

● MARKETING ANALYTICS IS AN OPPORTUNITY TO BE MORE PROACTIVE

With a greater understanding of customers, banks can derive predictions (to a certain degree of accuracy) on customer behavior and react proactively. For example, Marketing Analytics data can form the basis of statistical and data mining models that can help score customer bases and predict propensity of responses to campaigns. This knowledge can be fed into the campaign delivery system and can greatly increase the hit rate of campaigns.

● CUSTOMER MANAGEMENT

Customer management and treatment is a critical element of analytical marketing. Using analytics banks can present the right offers to the right customers at the right time greatly increasing the odds of responses relative to a non-analytics fueled campaign. Customer data Upsell and cross sell responses could be predicted to a high degree thus increasing customer affinity towards the bank. For example, Xerago spearheaded a cards cross sell campaign for a major international bank. Using a propensity model, Xerago was able to score a customer base based on their propensity to purchase premium credit cards and optimize their cross sell campaigns.

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CONCLUSIONComprehending and utilizing the potential of analytics is now crucial to marketing banking products and services to the modern customer. Marketers must embrace this analytics fueled strategy and care to encapsulate the actual marketing goals, the impacted stakeholder wants and needs and all their marketing channels comprehensively. This could help lay the strong foundation for the bank to rise up ahead of the competition and win the long term affiliations of their customers.

ABOUT XERAGO10.................................................

Xerago is a new age marketing solutions company with a footprint across Asia Pacific, now making its foray into USA. Clients include Citi, DBS, HDFC Bank, SM Retail, Celcom, Starhub, Intel, BharatMatrimony, and a number of other market-leading and start-up brands.

CHENNAINo # 3, 17th Avenue, Harrington Road, Chetpet, Chennai – 600 031

Ph: 91-044-42960800Fax: 91-044-42960801Email Id: salesIndia@xerago.com

MUMBAINo # 1005, 10th Floor, Ellora Fiesta Plot No:8, Sector-II, Sanpada, Navi, Mumbai - 400 705

Ph: +91-22-27759615Email Id: salesIndia@xerago.com

USA# 1670 S Amphlett Blvd, Suite 214, San Mateo, California 94402, USA

Ph: +1 650-260-4350Email Id: salesUSA@xerago.com

SINGAPORENo # 105 Cecil Street, # 11-00,The Octagon (Office Suite 1107),Singapore-069 534

Ph: 065-9006 2077Email Id: salesAPAC@xerago.com

To learn more about Customer Value Maximization and how it can help you,contact your nearest Xerago office.

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