Rich Jones, PrincipleLeading2Leadership LLC720.256.4936, rich0747@comcast.net@rich0747

Making Data Actionable

www.youtube.com/watch?v=449twsMTrJI&feature=youtu.be

Data is too important to be left to bean counters and report writers

Data needs to answer business questions with actionable information

So, what’s getting in your way?

Customer Perception?

6

Lack of software/resources?

Lack of Skill, Money, or Time?

Where do I start?

It Starts With a Strategy

Big Data Strategy1. To provide the data, data integrity and data awareness, the

reporting and analysis expertise and the tools and services to allow the bank or credit union to become a data driven organization for strategic, financial and operational planning

a) Create marketing efficiencies by target product and service offeringsb) Use data to discover organizational efficienciesc) Change decisions from “I think” to “I know”

2. To win, we need to excel at a) Data Accessb) Data Miningc) Data Analysisd) Data Visualization

Data sourcesData you don’t haveAggregate dataSet definitionsChoose the tool/softwareDetermine the budget and staffing model

BIG DATA “To Do” List

Set Milestones

• Data Strategy organizational buy-in

• Create definitions• Evaluate Data gathering, storing

and mining tools and resources• Identify tool and resource gaps• Plan to fill gaps• Establish utilization and

reporting elements

Data Sources

*Unstructured

• Core• Online and Mobile banking

platforms• MCIF/CRM• Loan Originations• Credit Bureaus• PFM• Credit Cards• Social Media*• Customer feedback loops*(Some data you hold, some is held by 3rd parties)

Set Definitions• Customer• Household• Core Deposit• Term Deposit• Consumer Loan /

Mortgage loan• Active Customer / Active

Account• Inactive customer /

Inactive Account• New Customer

Start NOW with Core Data• monthly ACH deposit to another FI• monthly bill payment via providers

website• automatic loan payment to another FI• with no checking• With no debit card• with inactive checking/debit• without a credit card with you• with A credit and low deposit balances• with high deposit balance and no loans• without mortgages with you • with one auto loan• with $10K of deposit balances

Our Job is to put a Face to Data

Opportunity Analysis

80%

20%

Deposit OpportunityCurrent Household DepositsCurrent Household Deposit Opportunity

41%

59%

Loan OpportunityCurrent Household Loans Current Household Loan Opportunity

Total Employees 400

Household Per Employee 40.75%

Total Members 279

Total Households 163 Deposit Information Loan Information

Current Household Deposits $ 5,188,468.00 Current Household Loans $ 2,746,984.00 Deposits per Current Household $ 31,831.09 Loans per Current Household $ 16,852.66 Total Employee Deposit Opportunity $ 10,811,532.00 Total Employee Loan Opportunity $ 13,653,016.00 Current Household Deposit Opportunity $ 1,331,532.00 Current Household Loan Opportunity $ 3,936,016.00 Remaining to Maturity (27% Share of Wallet) $ 359,513.64 Remaining to Maturity (34% Share of Wallet) $ 1,338,245.44 % HSA Households 1.23% % Loan Households 68.71%

Marketing and Data Use

Avoid Vanity Metrics• These “vanity metrics” include

– Total page views– Twitter followers– Likes– Visits

• The strongest marketers are the ones who collect actionable data.

Ask the “So What Question”• To be more actionable with

your analytics, start with the “so what?” question. – For example, click-through

and blog views are nice to have, but do they impact revenue?

• When you frame your decisions through the “so what?” question, you’re beginning to dig deeper into analytics.

5 ways to make the most out of marketing analytics

1. Stop relying on gut instincts• 40% of marketers say that they use intuition to make decisions. • Way too many businesses are just gambling on their marketing plans. • Bad guesses waste your time and resources. • Since these marketers probably don’t measure the outcomes of their

decisions, they are also likely to repeat past mistakes.

2. Don’t be a lukewarm user

• ~50% of marketers believe that their most under-utilized asset is their data.

• Do your homework. • walk you through the basics

of conversion goals, and traffic channels.

• It takes more effort to set up individual campaign tracking, it’s worth it when your actionable data starts pouring in.

3. Focus on what members are doing• Better understand your customer

behavior • Track customer paths• Run behavior reports to figure out

what people are doing on your channels.

• Evaluate drop-off points.• A/B testing is critical • A low 24% of marketers create and

test hypotheses. • Marketers are missing the

opportunity to collect real data and improve the customers’ experiences.

4. Be consistent with analysis• When marketing departments are busy, complex analysis can become a

lower priority. • That’s why only 37 percent of marketers use analytics on a regular basis. • Analyze your past data• Make smart predictions about future campaigns. • Using analytics to improve marketing campaigns can save time—and

increase revenue.

5. Assign real dollar values• 1/3 of marketers track ROI on their campaigns. • Dollars and revenue need more of your focus. • Don’t spend all your time on numbers, focus on dollars.• Work with your CFO or VP Finance help you calculate the actual value

of your marketing efforts. • When you calculate values for customer actions, you can calculate ROI. • This makes it much easier to prove the success of your

Actionable Data Leads to Better Marketing• When you are collecting actionable data, you can

make better marketing decisions.

Gather Data

• Identify you data sources

• Build or buy a place to store this data (MCIF/data warehouse/CRM)

• Prioritize what data to collect first– Priorities should align

with your FIs KPIs and Strategies

Organize Data• Store data in identifiable

segments (transaction data, balance data, process data…)

• Knowing what data resides where allows you to access it in the future

• Organize for tracking and trending– Use KPIs– Use Strategic goals– Use Key Ratios

Identify Relevant Data• Always start with a

question you want the data to answer then isolate, track and trend that data

• There is too much data and not all of it is relevant all the time

• Identify which data will provide the answer to your questions

Use Data to Create EfficienciesFrom

• Blast Marketing >>>>>>>>>>>>>>• One size fits all >>>>>>>>>>>>>>• We did good >>>>>>>>>>>>>>>>• We got a lot of new business >>>• We grew balances >>>>>>>>>>>>• Assuming everyone wants

everything >>>>>>>>>>>>>>>>>>• Not knowing the customer >>>>>

To

• Segmented Marketing• One size fits you• We had X return• We opened X new accounts• We grew balances by $X• Your customer is looking for

this one thing• Knowing the customer

How?

• Create smart targets• Create lists from these targets• Create a campaign goal• Store this list info with historical markers• Add the average per unit/balance profit for this

offer (work with finance to determine)• Append this list for activity/changes• Build a report to demonstrate this activity• Store this activity for future use/forecasting

Create a Target Lists• Monthly ACH deposit to another FI• Monthly bill payment via providers

website• Automatic loan payment to another FI• No checking• No debit card

• Inactive checking/debit• No credit card with you• A credit and low deposit balances• High deposit balance and no loans• No mortgages with you • One auto loan• $10K+ of deposit balances

Create a Marketing List

• Remove from the list– In collections– Sub-par members (CUs)– Underage customers– Do not market

Create Campaign Goal

• By units• By balance• By utilization• Goal should match

what the campaign is trying to accomplish

Store these Lists Under Unique Names

• Excel spreadsheet• Data warehouse• MCIF• CRM• Be sure to include

historical markers based upon the goal

Add Product/Balance Profit

• ROI or MROI (pros/cons)• Work with Finance• Average 1st year profit by:

– Unit – per auto loan– Balance – per $1000– Customer– Household

• Add this profit estimate to the tracking report

Append this List

• Same definitions• Same data source• Add appended data to

original list with historical markets

• Append weekly/ bi-monthly/monthly/…

Track, Trending, Reporting

• Build a report• Compare historical marker

to current• Present graphically

(visualize the data)• Tell the story – keep it

pithy…

Store for Future Reference

• Improves your goal setting• Helps with forecasting• Helps with budgeting

Three must measurements

• Engagement• Lead Generation• Utilization

Engagement

• Products per customer• Products per household• Balances per customer• Balances per household

Lead Generation

• Inbound Marketing• Social Media• Branch traffic• MCIF/CRM• eMail/Direct Mail• Outdoor• Events• Content Marketing• New customer marketing lists• SEG/Business Partner

employees

Utilization• This metric is the one that matters the most to your C-suite. • Did your marketing compel people to come in for an appointment

or attend an event? • Did you marketing result in product adoption and balance growth?• Match the marketing group to those who actually walked through

your doors—and give you a direct ROI/MROI on your effort.

Tweak and Start OverData quickly becomes addictive

Data will temper the “gut” and mitigate the “I think(s)”

"Information is the oil of the 21st century, and analytics is the

combustion engine.“Peter Sondergaard, SVP Gartner Research

Rich Jonesrich0747@comcast.netLeading2Leadership LLC

720.256.4936 mobile@rich0747 Twitter

LinkedIn.com/in/rich0747