Omnichannel Banking

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  • Omnichannel BankingEmbedding Banking in Consumers Daily Lives

    Presented by: Marcia Tal

  • Its Like Being There. Listen to the Recorded Presentation Now.

    Marcia Tal delivered the original version of her presentation Omnichannel Banking: Embedding Banking in Consumers Daily Lives in June 2013 as Lead Faculty for the International Institute for Analytics (Banking Analytics Research Council).

    Following the more recent publication of her Tal Solutions white paper on the same topic, Tal updated and expanded the slide presentation and added audio narration.

    VideoIf you want to hear her detailed and informative narration,

    click through to the video from the next slide.

    SlidesTo read the slide presentation here, just click through the slides as usual.

  • Where We Were

    Before Multi-channel and Omnichannel...

    We could only interact with customers at the branch or call center.

    In the 1990s, I listened to call center conversations to better understand customer needs.

    We uncovered opportunities for growth in call center interactions.

  • Where We Are Now

    Multi-dimensional analysis enables timely and relevant product and service offerings.

    Omnichannel banking experience will deliver many opportunities.

    Learn from looking at Omnichannel retailing.

    Aim to embed banking into consumers daily lives.

  • Where We Need To Go

    In January 2014, BBC reported Barclays stated:

    We have consistently been clear that over time, there will be fewer and fewer traditional branches as we move to provide banking services to customers where and when they find it most convenient.

  • Background

    Customers are driving how and when they interact with their bank.

    Data integration across channels and touch points is critical to providing an omnichannel environment.

    Understanding customer intentions and uncovering insights is core to the next generation of customer experiences.

    Dynamic technology capabilities are transforming the industry.

  • Industry Context

    Retail Banks are facing mounting pressure to execute broader

    channel diversification strategies aimed at widening the banks

    customer base, improving customer experience, and increasing

    revenues through new products and services.

    Executing an omnichannel banking strategy will enable banks to provide relevant and timely offers that deepen existing customer relationships as well as create new ones.

  • Importance of Omnichannel

    Incorporating customer choices & behaviors contributes to profitable growth (new customer acquisition, retention of engaged customers & an improved portfolio profile).

    Retail has already demonstrated profitable outcomes (increased basket size, greater conversion rates & reduction of inventory losses).

    PROVENSTRATEGICVALUE:

    Seamlessly integrated customer experiences

    Cross-functional collaboration

    C-SUITE EXECUTIVES AND OPERATIONAL MODELS MUST EVOLVE TOWARD:

  • Vision to Reality

    Expanding Access to information & insights

    Refined models and strategies for Attracting New Target Segments

    Expanding Eligible Universe through specialized analytics methods and integrated data sources

    Real-time models that incorporate previous and current choices and behaviors for Deepening Customer Relationship

  • Building an Integrated StrategyStrategic Elements

    Foundational Elements

  • Building an Integrated Strategy

    Performance Tracking

    Building a 360 View of Customer

    Enabling Cross-Functional Collaboration

    Ensuring C-Suite Accountability

    Implementing a Business Mandate

    Roadmap forSuccessfullyAchieving anOmnichannelBanking Experience

    NecessaryFoundationalElements

    STRA

    TEG

    IC E

    LEM

    EN

    TS

    FOUNDATIONAL ELEMENTS

    Data Technology AnalyticsIntegratedMarketing

    ManagementOperations

  • Strategic Elements

    Business Mandate broad communication from the CEO

    C-Suite Accountability translate business mandate into organizational accountability

    Cross-Functional Collaboration create the capabilities integral to the omnichannel banking experience; realize business mandate

    360 View of Customer fuel analytic models to create new offers

    Performance Tracking measure progress and maintain accountability

  • Foundational Elements

    Data: What data sources need to be integrated in order to have a holistic view of the customer?

    Technology: What technology tools enable data from different environments to be shared and integrated into different customer facing systems?

    Analytics: What analytic techniques and skills are required at each step of the process to efficiently identify customers emotions, intent and behaviors? How to predict the next best product offer to improve the customer experience?

    Integrated Marketing Management: How do I utilize hot lists, new sources of information and analytic insights to accelerate speed to market?

    Operations: How do I prepare my customer facing employees with the tools, data and training to support business initiatives that impact the customer experience and overall business strategy?

  • Data

    CONVERSATIONSsocial media

    customer call centeronline chat

    INDIVIDUALUnique

    CustomerIdentifier

    BEHAVIORinternal dataexternal data

    INTERACTIONStransactions data

    location data

  • Technology

    Is transforming the interaction model between consumers and banks & allows for more effective engagements

    3

    2.3

    1.9

    1.8

    90% 87%

    84%

    76%

    65%

    70%

    75%

    80%

    85%

    90%

    95%

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    EARLYADOPTER

    EARLYMAJORITY

    LATEMAJORITY

    LAGGARD

    Avg monthly visits to branch % of virtual visitors

    Source: Cisco IBSG, June 2012

    The increase in channels has resulted in an increase in customer interactions.

  • Technology

    Mobile embedded in consumers daily lives

    By 2017, more than 1 billion mobile phone users will have used their mobile device for banking purposes.

    (Compared to 590 million users this year.)

    DATA SOURCE

    CHANNEL

    PLATFORM

    REVENUE GENERATOR

    COST PLAY

  • Analytics

    Product Usage Customer VoiceCreditworthiness Keyboard StrokesPsychographics Online ConversationGeography Blog NetworksDemographics Peer ReviewWealth Customer Survey

    DATAELEMENTS

    Customer Segmentation Unstructured Data AnalyticsPropensity Modeling Sentiment AnalysisOffer Optimization Integrated Analytics Data MartsPerformance Evaluation Integrated Client Service PlatformsClient/Segment P&L Statement Digital, Voice and Text Data MiningCompensation Modeling Pattern Recognition Evolution

    ANALYTICAPPLICATIONS

    EVOLUTION OF ANALYTIC CAPABILITIES

    ESTABLISHED NEW ENTRANT

  • Analytics

    CASE STUDY: THE POTENTIAL OF SEGMENTATION

    Client: Global Consumer Franchise

    Business Problem: Improve inbound sales process through more targeted offer strategies, reporting and measurement.

    Solution: Integrated data models, segmentation, predictive models and tracking into call center process. The design and implementation of sales palette optimization tools prompted phone offers to offer customers products based on propensity modeling and economic returns. Leveraged real time triggers to optimize channel selection.

    Methodology: The integrated operational and customer analytic infrastructure relied on: Data integration management Rapid cycle prototyping Segmentation and targeting

    Process design and redesign P&L forecasting and tracking utilizing

    dashboards and MIS

    Data Elements: Product usage Credit worthiness Demographics Customer Voice Customer Survey

    Analytic Applications: Customer Segmentation Propensity Modeling Offer Optimization Compensation Modeling Profit and Loss forecasting Integrated Data Marts Integrated Client Service Platforms

    Value: The offers generated 4x higher acceptance rates and 20% higher Net Present Value.

  • Integrated Marketing Management

    Understand the customer

    Make smarter marketing decisions

    Accelerate time to market

    Improve customer profitability and customer experience

    Lower the cost of marketing execution

    Improve marketing self-sufficiency and agility

  • Operations

    Banks must empower their customer-facing employees with the

    tools, platforms, information, training and incentives that ensure

    a customer-centric culture.

  • Highlights

    Understanding customer intentions and uncovering insights through advanced analytic techniques is core to the design of next generation customer experiences.

    Listening to customers requires integrating data, technology, analytics, marketing and operations the foundational elements of omnichannel banking.

    To fully realize the potential of omnichannel, C-suite executives and operational models must evolve.

  • THANK YOU!

    Visit www.talsolutions.com/omnichannel for Marcia Tals full research report.

    Tal SolutionsMarcia Tal, Founder347-478-5194Talsolutions.com

    Highlights

    Understanding customer intentions and uncovering insights through advanced analytic techniques is core to the design of next generation customer experiences.

    Listening to customers requires integrating data, technology, analytics, marketing and operations