Banking

Case Study

Market Situation

Banking today is at a crossroads where completely new competitors introduce totally new, faster, cheaper and more personalized offerings. To stay relevant banks and credit card companies must rethink their entire ecosystem and ability to service their customers. Concrete examples of non-traditional companies entering into the fray are PayPal, wireless providers like Verizon, Amazon, Apple, Google and even merchants forming their own payment processing cooperatives.

To compete in the future a core underpinning will be the ability to deploy a highly automated means to predict customer behaviors, needs, wants and actions and to then operationalize those predictions across all channels.

Background
  • Our client, a major international Bank, wished to expand its services to existing customers,
    minimize attrition and acquire new customers.
Objective
  • To achieve these goals, our client sought a data-driven approach that would quantitatively provide those answers. The necessary tools and information about its customer base were included in a Customer Relationship Management (CRM) system.
Strategy

This client implemented a Closed Loop CRM system.

Solution

Using a centralized data warehouse containing approximately 1,200 attributes for each of its 4 million customers, Modern Analytics designed and installed a closed loop CRM analytic system and guaranteed its successful implementation. The system targets customer segments for specific promotions, cross-selling, and attrition prediction.

Results
  • As a result, marketing outperformed existing product managers 30 to 1 in attracting net new money to the bank.
  • Marketing model develop times were shortened from four to six weeks to one week. In addition, our automation of the modeling process ensured that our client achieved consistent quality and highly efficient time-to-market promotions.
  • This CRM system was a critical success factor during and after our client’s acquisition and merger with another major international bank. Our client could monitor its new customers’ behavior, while reducing attrition and continuously improving its marketing activities.