Let’s Get Personal: Optimizing Omnichannel with Analytics and Digital Data Click to edit Master title style David M. Wallace Global Financial Services Marketing Manager, SAS Simon J. Bennett SVP Customer Analytics North American Banking Analytics HSBC Bank USA Agenda • Marketing and Financial Services Today • Customer Decision Hub – Applying Science to Omnichannel Marketing • HSBC Perspective • Final Thoughts • Questions Page 2 The Financial Services Marketing Landscape Page 3 Marketing Is Still Channel Centric Page 4 Data Remains A Challenge Page 5 Analytical Velocity Must Increase To Support Customer Decisions Page 6 Concept: Optimized Customer Decision Hub Page 7 Customer Decision Hub – Actions Page 8 Customer Decision Hub – Insight Page 9 Customer Decision Hub – Rules Page 10 Customer Decision Hub - Orchestration Page 11 Customer Decision Hub - Optimization Page 12 Customer Decision Hub – Key Benefits  CONSISTENT Omni-Channel implementation  CENTRAL decision logic for all customer interactions  UNIFIED user interface across departments  VALUE-BASED marketing management  LEVERAGE business know how through Advanced Analytics Page 13 HSBC Today – Balanced Global Universal Banking Model Page 14 PUBLIC Present in 70% of the World’s Largest 200 Cities and Able to Capture Opportunities in the Fastest Growing Cities Page 15 PUBLIC Continue to Develop with Focus on Growing Customer Relationships Page 16 PUBLIC Optimizing Channel Usage can only be Achieved with Constant Development in Digital Channels Page 17 PUBLIC RBWM Transformation: Improving Efficiency and Customer Experience Page 18 PUBLIC HSBC’s Need for Channel Optimization Based on - Different functional capabilities of each channel - Customer’s channel preference, - Existing infrastructure, - Costs associated in servicing customers through each channel, - Internal capabilities, Banks are trying to optimize their presence across different channels in each region. Special focus is being shed on migrating customers from Branch to other channels in lieu of high costs associated with it Page 19 PUBLIC Understanding a Customer's Relationship with the Branch Network ► Is the customer a Branch/ATM/PIB reliant? What is the most used branch? ► Is the customer an efficient user of the channel? If not how do we migrate? ► Potential impact to branch-reliant customers in case of optimization ► ATM utilization and network optimization ► Quantify potential run-offs of highest risk customers (single branch users), and highest value customers ► Impact of branch hour changes on customer convenience ► Location of non-HSBC ATMs used by most valuable customers Customer’s Preferred Branch Branch A Branch B ► What is the regulatory impact (eg. CRA requirements)? Page 20 PUBLIC Design Channel Experience With a Customer Centric Approach Analysis of customer channel behavior for each of the services tells us how far we are from our preferred model Values shown are purely for illustrative purposes and are not HSBC’s actual assessment Page 21 PUBLIC Combine the Channel Analytics with Knowing when to Contact a Customer and what to Contact them About Acquiring Enhancing Retaining New Customers Existing Customer Relationships profitable customers for life Onboarding Leads Welcome packs and scheduled calls optimized through analysis of previous customer onboarding Promise to Call Disengagement and Inactivity Trigger Leads Upgrade Leads From lower to higher proposition Referral Leads Event Trigger Leads Identified from analytics Periodic Campaigns optimized through analysis of previous campaigns and propensity modelling Periodic Campaigns optimized through analysis of previous campaigns and propensity modelling Customer, Product and Transaction Analytics helps prioritize customer contacts Page 22 PUBLIC Five Principles to Continuously Improve our Customer Experience Page 23 PUBLIC Five Lessons Learned 1. If the people that matter (the front line) aren’t with you, nothing else matters 2. It’s a long term commitment – and the tech build is the hard part! 3. If you can’t agree on what success looks like, prepare for a long winter 4. Make sure your plan is heavy on what you will do, not on selling what the solution can do 5. Know who’s driving (and how many spare keys exist) Page 24 Final Thoughts • 3 Key Takeaways –Analytical models, rules and actions should be consolidated to support omnichannel –Integrated marketing application framework delivers higher velocity & lower friction in the marketing process vs. best-of-breed tools stitched together –Mathematical optimization should be at the center of a decision hub so that both the customer’s and the bank’s goals can be met together for a win-win • Predictions for 2015 –Advanced analytics continues to move in-memory to drive immediacy of decisions on large data sets –Mathematical optimization increases as complex decisions made easier –More real-time, less batch decisioning Page 25 Questions? Thank You! [email protected] for follow-up questions Page 26