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Smarter Commerce Challenge
Transcript of Smarter Commerce Challenge
Strategically growing a Large European Bank IBM has proven customer strategy expertise working with the world's largest financial institutions IBM's Customer Innovation & Growth Strategy Practice Attracting and maintaining clients in today’s competitive environment requires deep customer insight and seamless execution across digital and traditional channels.
Our Customer Innovation and Growth Strategy practice has a number of offerings designed to help clients develop and implement customer-focused transformations. Odyssey Bank:
Transforming the way
you do business IBM paired with the client team to create a bold, innovative multichannel strategy focused on creating a personalized customer experience that would win new business and expand existing accounts. ■ Our Customer strategy capabilities focus on developing and implementing an integrated customer experience that is aligned to your broader corporate strategy and brand attributes. Customer Strategy Customer Advocacy Customer Experience Design Growth Strategy IBM’s Customer Focused Enterprise framework defines the capabilities required to capture customer advocacy. Technology & Operations, and Organization & Change Technology & Operations Organization & Change Enabling a customer focused transformation requires an operating model transformation and supporting organizational change management to fully realize the benefits of the transformation. IBM’s Better Change enablers support client transformations by accelerating progress in transformational change. IBM's Target Operating Model is a framework for formulating an Operations Strategy to align the organizational elements to each other and to the business strategy. IBM's Customer Experience Design is used to help our clients define a customer strategy that is aligned to their overall strategy and brand attributes. MARKETING EFFECTIVENESS Our offerings include:
Real Time Events
Management We can help you develop a strategy to manage your marketing based on your client’s individual preferences. INTERACTION & COLLABORATION Insight & Intelligence Client Segmentation Our Growth Strategy approach helps clients develop growth strategies, assess growth performance and deploy the necessary capabilities to enable growth. Our analytics offerings can help you define and implement an analytics strategy throughout your value chain that will help you better tailor your services and marketing to each individual customer. Digital Channels, Sales & Service Channels Innovation Strategy Social Collaboration We can help our clients develop strategies to leverage social collaboration tools to:
Increase revenue through differentiated market insight
Improve employee productivity through dynamic workforce & knowledge exchange Our innovation tools such as the Enterprise Innovation Accelerator can help companies define their innovation archtetype and create strategies to support sustainable innovation IBM's Channel Transformation Strategy supports integration and consistent experience across all customer touch points. Offer Management
Digital Content Our Enterprise Marketing Management offering focuses on the integrated capabilities to deliver the value proposition. Upon swiping their credit card to pay, they immediately received tailored offer via text message with a 10% discount to a nearby bagel shop if they used the same card to purchase within the next three hours. All executives swiped their credit card at point of sale, and received a thank-you text and the discount was automatically credited to the next monthly statement.
Maximizing sale when customers willingness to buy is highest. Redemption has never been easier. The team dispatched a handful of senior client executives to a local café to buy a cup of coffee. Our client has access to data that can help its merchants better engage with their customers.
Merchants understand that they must evolve to stay relevant, leveraging digital and mobile to create timely offers to increase foot traffic in stores and drive sales. IBM financial and retail specialists met with the client to address customer and go-to market strategies, operational efficiency and redesign, and then moved to quickly build a prototype in only a few weeks’ time. For all its simplicity, the test proved that IBM’s solution could:
Create a strong relationship with merchants and offer a new source of revenue
Maximize real-time capabilities. Offers are no longer based on what a customer has purchased in the past, but right now. IBM's Banking is
Smarter. 1 2 3 IBM and client realized the opportunity to use smarter analytics to see what customers want and give them the “right” offer, whenever and wherever. Transactions were up, indicating that location-based and swipe-driven product offers played a role in increase foot traffic.
The apparel retailer's mobile app lifted sales by 109% for enrolled customers vs. a control group. IBM and the client conducted a real-world pilot with a large apparel retailer and was able to launch this new product from concept to commercialization in less than six months. “Combining purchasing behavior with other triggering criteria, such as time or location of
purchase, is a powerful tool for maximizing an offer’s relevance to the customer—and
for many merchants it’s considered the holy grail of marketing” Case Study 2:
Transforming a Leading Credit Card Company The road to transformation Helping our client see the future We then put it to the test... Shopping a few blocks away?
By sensing a card swipe real time, our client could use proximity to generate foot traffic and increase sales. The customer evolution is here.
The right offer.
The right time.
The right place. Results based on our client's analysis: IBM's Innovation Cycle An End-to-End View into Analytics Creating the best strategy for the client Envisioning a personalized customer experience Realizing the benefits with IBM - Slated to increase the proportion of customers
who use the bank as their primary bank by 20%
- Projected to increase online sales by 200%
- Overall sales will increase by 5%
- Reduction of branch operating costs by 40% With IBM, the client revolutionized its channel strategy, creating an online self-service hub and scaling back branch operations. The Strategic Approach Embark on a journey to transform the existing strategy and business with a focus on the following key components, allowing Odyssey Bank to both grow and maintain its customer base and profits:
1) Customer Strategy
2) Insight and Intelligence
3) Marketing Effectiveness
4) Interaction & Collaboration
5) Technology & Operations The Challenge Customer demand mobile platforms to satisfy growing need for accessibility. Non-traditional
competitors are emerging and entering the market. The explosion of data provides ability to gather, understand and capitalize on opportunities. Companies' digital and social media brand must align with their company brand. As the year 2011 approached, Odyssey bank found themselves in a position that demanded change. They were continuously losing customers to both traditional competitors as well as companies they hadn't previously viewed as a threat.
The CEO ordered an assessment to understand market trends, competitor profiles, and existing offerings to determine why the bank was failing. Customers are evolving. They desire empowerment and personalization. The Results Transformed Capabilities 1) Trend Spotting: Ability to understand customers and what’s hot with target segments.
2) Manage the digital brand: Ability to deliver a culture and brand that are authentically one.
3) Execute highly targeted digital campaigns: Allows users to access the brand from device of choice at a time and a place that suits them.
4) Central Repository: Enables use, reuse, and tracking of campaign building blocks, including audiences and exclusion rules.
5) Cross Channel Experience Design: Delivers rich, targeted and consistent multi-platform customer interactions.
6) Single view of the customer: Ability to centrally store customer data and match algorithms to enrich the understanding of the customer.
7) E-sites: Allows for ultimate utilization of any E-commerce platform. Process Efficiency Transformation 1) Increased governance and accountability based on a customer-centric model.
2) Simplified, targeted metrics/KPI’s to drive integration and operational processes.
3) Increased cost optimization.
4) Reduced working capital. (~1%)
5) Single platform with a single instance. Data terms and definitions are commons across the entire organization.
6) Ability to integrate outside business rules and past historical data into next action decisions. Improved Customer Satisfaction “I absolutely love the mobile application that Bank Odyssey offers, now I can bank anytime, anywhere!” “I feel like an individual when banking with Odyssey, they send me targeted offers that make sense for ME not the general mass, now I look forward to receiving the offers they send!” “I finally feel in control of my finances and am confident that Bank Odyssey is the right bank to work with as I begin looking at strategies to grow my assets.” Odyssey and the competition Bank Odyssey now possesses capabilities that not only make them competitive, but also distinguish them in the market from their fellow competitors.
Results just one year after the transformation:
2.5% growth in market share
Growth in the percentage of customers who accept new offers/services, shifting to 20% from a mere 2 %
8 % increase in customer retention rates
Maintained a digital brand that mirrors the company's value and ideals, contributing to a 15 % increase in existing customer referrals and an increase of 30 % in social media followers If a customer reads about personal loan rates online, the system displays banner ads with related offers in near-real time. If a customer sets up a new savings account, the system automatically sends an email to guide the customer through the fund transfer process. The information remains consistent across channels, whether customers go to the website, dial the call center, receive a direct mail piece, use an ATM or visit a branch office. The key to this strategy is a multichannel marketing solution that uses predictive analysis capabilities to track customer behavior, predict what they might want next and use business rules to serve up personalized dynamic content. IBM is the pioneer in data analytics and implementing analytic process supported by the Cognos and SPSS tool sets, as well as cutting edge cognitive computing using Watson. IBM has a host of market leading products in areas such as MDM, databases and analytics supporting marketing and customer contact innovation. Create a long-term strategy.
Design the customer contact processes to support the vision.
Provide you with the extensive tool set to deliver the strategy.
Establish relationships with major financial partners to ensure seamless integration. Let IBM help you: Gartner Magic Quadrant for Multichannel Campaign Management IBM is a market leader Join the revolution.
Build a smarter commerce with IBM. Let's build a smarter commerce The following factors were identified as drivers for change: 5 4 1 2 3 Customer Analytics Analytics Strategy Our offerings include: