KeyBank: Organizational Alignment

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KeyBank: Organizational Alignment

description

KeyBank: Organizational Alignment. Market Spaces. Value Proposition. Special needs requiring customized solutions and advice across a broad product array. Large Corporations. Business Model. Communication. Middle Market. Delivery. Service. Product. Small Business. High Net Worth. - PowerPoint PPT Presentation

Transcript of KeyBank: Organizational Alignment

Page 1: KeyBank:  Organizational Alignment

KeyBank: Organizational Alignment

Page 2: KeyBank:  Organizational Alignment

Client-Focused ApproachMarketSpaces

Large Corporations

Middle Market

High Net Worth

Small Business

Emerging Affluent

Mass Market

Value Proposition Special needs requiring

customized solutions and advice across a broad product array.

Standard solutions for most problems but with the option of a custom solution on occasion.

Delivery Service Product

Business Model

Communication

•Process•Technology•Human Capital

Page 3: KeyBank:  Organizational Alignment

KeyBank decides to take a segment focusBased on new corporate priorities….

“I want KeyBank to be at the forefront…of a movement away

from an obsession with selling products to one that emphasizes

meeting client needs.”Henry L. Meyer IIICEOKeyBank

It becomes incumbent on MarketingTo demonstrate the value of this approach

Client-Focused ApproachResistance to Segment Approach - Silos

Ret

ail

Ban

king

Cons

umer

Fina

nce

S

mal

l

B

usin

ess

Inve

stm

ent

Man

agem

ent

A Mandate From Above

$$$

$$$

$$$ $$

$ $$$

Marketing Creates Believers“To bring our segmentation efforts to fruition, we had to find a way to prove the value of segment-focused customer initiatives across the organization.” Chief Marketing Officer, KeyBank

Valu

e

Segment Assessment MatrixHigh

Low

GrowingFamilies

YoungTransitionals

Demand

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Client-Focused ApproachA Transparent Evaluation Process Creates Buy-in for Segment

InvestmentsSegment Initiative Competition*

Segment-based initiatives are consistentlyScreened by the senior leaders of KeyBank’s product and functional areas. Thus, each “winning” initiative is likely to be accepted by all product organizations.

Initiative Screening Criteria: • Yields X percent projected ROI• Provides a sizeable opportunity• Addresses a specific segment priority• Delivers an enhanced segment experience• Aligns with corporate priorities• Executed on appropriate time horizon

Executive Operating Committee

PreworkSegment Initiative

Brainstorming

Stage 1:High-Level

Benefit Hurdle

Stage 3:Pilot Results

HurdleFully Funded

InitiativesStage 2:

Business CaseHurdle

Segments

Grow

MaintainControl

CostControl

RiskValu

e Ap

proa

ch Initiatives that are obvious

“ no’s” are killed by the

EOC before any large-scale

analysis

Finance standardizes and Tests assumptions

in order to Establishfinancial objectivity

Monitoring pilot results lowersUncertainty around segment-investments and generatesOrganizational momentum

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The Key to SuccessWinning initiatives build cross-business support for increased segment-based

investment….

…and encourage KeyBank to expand the breadth and

scope of the program

Marketing Budget AllocationIllustrative

Perc

enta

ge

2003 2004 2005

KeyBank isIncreasing thePortion of theMarketing budgetAllocated toSegment-basedinitiatives

Segment-Related Marketing SpendAll Other Marketing Spend

“Quantifying the financial impact of segment-focused initiativesIn our growth and differentiation strategy has led us toReallocate substantially more of the marketing budget toThese efforts.” Chief Marketing Officer,

KeyBank

Show Them the Money

Next Steps for KeyBank

Segment Champions – KeyBank isAppointing full-time segment managersto head each segment team

Project Manager Pool – KeyBank iscreating a pool of project managers toImplement segment initiatives

Incentives – KeyBank is planningto link segment teams’ incentives tosegment initiative success

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Making it happen

Implementing a structure to enable human capitol development to go deep as well as wide enables evolution. Reporting to the CMO assists empowerment.

CMO

Strategy&

Developers by

Market Space

Analytics and

modeling

Reporting

Technology Support

Database Marketing

Field Marketing

LOB Marketing

Media

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Appendix

Page 8: KeyBank:  Organizational Alignment

Tools that Support a Client Focused Approach:Decision Engine Environment

EDW

Contact History

Channels

OBIITM

Desktop

Email

MailOTM

CDM

Householding

Affinium SuiteCampaign & Optimize

Decision Engine - DE

Business Rule

Registration Tool

Lead Distributio

n(AOM)

Models

Demand Segmentatio

nCustomer Integration

Prospect Database

Reporting and Analytic Environment supported by MicroStrategy and Consumer Extracts

Triggers

Value Segmentati

on

Market Space

Channel Optimizati

on

Direct MarketingInitiatives

ServiceGuidelines

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Raw Data

Analysis Input Files

Exploratory Data

Analysis (EDA)

Application of Modeling Techniques

Final Models

SAS ETS

Regression

SAS E-Miner

Tools that Support a Client Focused Approach:Marketing Performance Optimization

Data

Engine SPT

Scenario Planning Tool:An interactive, web-based software interface that allows marketers to propose different “what if” scenarios and projects the related results in terms of balances, EPA, and accounts.

A system of models using complexmathematical & statistical relationships.Primarily employs Neural Networks, TimeSeries modeling and Regression techniques.A set of self-training models which continuouslyimprove with time.

ClusterAnalysis

NeuralNets

CHAID

Time SeriesARIMA