Big Data & Analytics Use Case

Optimize Offers and Cross Sell

2013 IBM Corporation

Big Data & Analytics supports top business imperatives in banking

Create a customerfocused enterprise
Optimize Offers and Cross Sell

Optimize enterprise
risk management

Call Center Efficiency and

Problem Resolution

Financial Risk Analysis

Market and Portfolio Risk Analysis
Counterparty Credit Risk
Management
Lending Risk Analysis
Payment Fraud Detection and
Investigation
Real-time Fraud Detection
Market Surveillance

Increase flexibility and

streamline operations
Data Staging and Management
System Log Analysis
System Failure Analysis

2
2013 IBM Corporation

The value of Big Data & Analytics to create a customer-focused enterprise

Better, faster, more complete customer insight
Increase customer satisfaction
with faster and more complete
insight into customer experience
and service levels

Increase revenue
by adding social
analytics as an additional
source of valuable insight

Optimize cross-sell/ up-sell

by accurately predicting
products to appeal to
micro segments

Accelerate offer acceptance

by predicting and delivering
optimal best offer in
near real-time

Create a
Customer-Focused
Enterprise
Optimize Offers and Cross Sell

Learn customer attitudes

by understanding and
anticipating customer
behavior across
all channels

Improve customer retention

by delivering customer retention
offers in near real-time

3
2013 IBM Corporation

The current state of customer management for most banks

Limits cross-sell success and provides a poor customer experience

Mass Market | Mass Affluent | Small Business

Customer Needs and Segment Strategies

I have an offer let me find a customer to sell to.

Offer
Offer
Offer

Deposits

Offer
Offer
Offer

Direct mail

Relevance?
Awareness?
Value?
Understanding?
Clarity?

Customers Point-of-View
You do not know me or understand my
needs.

BC

Card

Offer
Offer
Offer

Offer
Offer
Offer

Offer
Offer
Offer

Offer
Offer
Offer

You ask me multiple times about the

same thing.
Agent, IVR

Most of your suggestions are for products

and services that seem irrelevant to me.
Online, email

Mortgage

Investments

Offer
Offer
Offer

Offer
Offer
Offer

I am not offered solutions based on my

multiple relationships.
ATM

Mobile, SMS

When you recognize that I have a need,

you send me multiple offers for
different products its confusing.

Chat

customer insight is limited to a sub-set of available data

limiting the relevance and timeliness of offers to customers
4
2013 IBM Corporation

Does this sound familiar?

Today we treat Aki like any other customer in her segmentbut Aki is an individual
Bank: Hi
<NAME>!
Can we
interest you in
a credit
card?

Aki: Oh, look!

More junk
mail from the
bank

5
2013 IBM Corporation

By using only our limited segmentation, we treat Aki like anyone else
Aki holds a
mortgage and
a savings
account with
us Cash Management Acct.

Set meeting with Private

Banking and Wealth Mgt.
Advisor for a Portfolio
Review

Equity Bank Line /

Secured Line-of-Credit
Akis current

credit score and

profitability
her for
Preferredqualifies
Gold Credit Card
a preferred rate
6
2013 IBM Corporation

Information helps us understand how Aki is different, but do we use it?

Aki holds a
mortgage and
a savings
account with
us

Aki has also

Last week
posted property
Aki asked the
photos to
Call Center
Facebook
about loan
asking friends
processing
to vote
times
This week, she

Akis current
credit score and
profitability
qualifies her for
a preferred rate

checked
mortgage rates
on the Web Site
three times

And today shes

tweeted a link
to an article
about buying a
second home

7
2013 IBM Corporation

By using all the information we can make our service unique to Aki
Aki holds a
mortgage and
Aki has also
a savings
Last week
posted property
account with
Aki asked the
photos to
us Cash ManagementCall
Acct. Center
Facebook
about loan
asking friends
processing
to vote
times
This week, she
Preferred Gold Credit Card

Equity BankAkis
Line / current
Secured Line-of-Credit

credit score and

profitability
Mortgagequalifies
special rate her for
discount 25 basis
points
a preferred
mortgage rate

checked
mortgage rates
on the Web Site
three times

And today shes

tweeted a link
to an article
about buying a
second home

8
2013 IBM Corporation

Leveraging Big Data and Analytics to optimize offers and cross-sell

Analyze information from all customer interactions and data sources
Internal
Customer Data

New
Capabilities

Structured and
unstructured

Social

Attitudes,
preferences

Correspondence

Create a
customerfocused
enterprise

Transactions
All channels
(Web, call-center,
branch)

Real-time event detection

Micro segmentation
Score sentiment and
satisfaction more accurately
Optimize offers and timing
Faster and more accurate
predictive models

External
Customer Data
Credit bureaus,
demographic
(purchased data)

Events
Customer
behavior triggers

Outcomes

Emails and chats

Pro-active interactions
Improved offer acceptance
Geospatial

Contact Center

Where is
the customer

Notes and chats,

customer interaction

Customer
Profitability
Metrics

Increased customer satisfaction

Improved profitability

Customer value

9
2013 IBM Corporation

The process of optimizing offers and cross-sell

A process of continually revising the offers that are considered for customers
-- optimizing bank and customer outcomes
Inform

What we know about

Aki
from all interactions
and social media

Measure

Quantify success

How Aki is similar to or

different from others

Align activity to value drivers

(customer profitability and affinity)

Learn

..identify Akis needs

implicitly

Engage

Target

What we show Aki, how often,

and how we interact with her

Present

10
2013 IBM Corporation

Common challenges with optimizing offers and cross-sell

Un-mined data, lack of analytic depth and every LOB for itself mentality
Data

Analytics
Inform

Models lack customer

interaction and behavioral
cues

Full measure of customer

response is unavailable

Siloed sources with

limited granularity

Models cannot learn and

improve

Oriented to products and Lack real-time information

channels, not customer
relationships

Measure

Limited to structured data

Updated daily at best

Offer Management
5

Learn

Little of the data already

collected is used to inform offers
(e.g. secure messaging, agent
notes, web interactions, etc)

Results (status quo)

Customer offer acceptance is low
and declining (0.5% - 1.5% typical
for direct marketing)
Customers perceive offers as
irrelevant (SPAM), so customer
affinity is low and declining
Customers do not feel valued:
customer attrition is high and
costly, retention is a persistent
challenge

Engage

LOB and channel-driven = bulk offers product

pushes
Offers compete with one another, lacking either
customer or bank optimization
Feedback from actions is not reliably captured,
hindering ability to model, test and learn quickly
4

Present

Target

Predictive models are time

consuming to build and
deploy so
updates are infrequent

Employees lack confidence in

offers: low presentation rates and
low morale

Model effectiveness
diminishes rapidly

11
2013 IBM Corporation

How optimizing offers and cross-sell is enhanced with Big Data and Analytics
All data is mined to enable deep analytics for a customer-focused experience
Data

Analytics
Inform

Full measure of customer

response to offers

Consolidated sources
with full granularity

Models learn and improve

Oriented to customer
relationships, not
products and channels

Measure
Updated in real-time

Offer Management

Customer offer acceptance is high

and increasing (customer behavior
trigger offers often achieve 15% 30% acceptance rates)

Also include real-time

information
2

Uses all information

Models include customer

interaction and behavior

Results (with big data)

Learn

All data collected is used to

inform offers
(e.g. secure messaging, agent
notes, web interactions, etc)

Customers perceive offers as

immediately helpful, so customer
affinity is high and increasing
Customers feel valued: customer
attrition is low, and retention is
improving

Engage

Customer-driven = personalized offers

Offers are considered across the LOBs to enabling

offers to be optimized for both customer and bank
Feedback from actions is reliably captured, enabling
the ability to model, test and learn quickly
4

Present

Target

Predictive models can built and

deployed quicklyenabling
more frequent updates

Employees have full confidence in

offers: high presentation rates and
high morale

Model effectiveness is
improved

12
2013 IBM Corporation

Big Data and Analytics can optimize offers and cross-sell success
Improving outcomes for the customer and the bank

Governance,
Prioritization and
Optimization

Brilliant!
BC

Card

Offer
Info
rm

Mortgage

Investments
Customer Experience
and Treatment
Strategies

Agent, IVR

They seem to know

what I need and when I
need it.
The bank isnt always
selling something.

Online, email

ATM

Integrated
Customer
Analytics

The bank knows me

and values my
relationship.

Direct mail

Se
rvi
ce

Mass Market | Mass Affluent | Small Business

Deposits

n
ai
et
R

Customer Needs and Segment Strategies

I have a customer what do they need most?

Mobile, SMS

They always get me to

the right place and
never fail to follow up.
There is real value to
me in getting all my
needs met by one
bank.

Chat

The customer feels that the bank understands and responds to their changing needs
The banks KPIs improve: Customer Profitability / Satisfaction and Advocacy / Retention
13
2013 IBM Corporation

Using Big Data & Analytics to Optimize Offers and Cross-Sell

SOLVING TECHNOLOGY
CHALLENGES
14
2013 IBM Corporation

The offer management environment of most organizations today

Is the source of many current challenges that limit success
Master
Master Data
Data Management
Management

Reporting
Reporting &
&
Dashboards
Dashboards

De-duplicated
De-duplicated customer
customer information
information

Analytics, Reporting
and Action Zone

Business
Results

3 Batch

analysis
Warehousing
Warehousing
1

offers

Master Data Repository

Connectors

Batch (daily)
movement
Only structured data
Lacking behavioral and
relationship information

3
1

ODS
ODS
1

Product
/channelfocused

Propensity-focused
Limited granularity
(i.e. behaviors)
Expensive to change

Marts
2

LOB / product /
channel-focused

2 Limited

descriptive
and
predictive
models

Channels
Channels

EDW
Data
Data Integration
Integration

3 Bulk

3 Inconsistent

2 Limited
targeting

3 Mediocre
customer
experience

crosschannel
experience

Limited capacity to incorporate feedback, particularly with low latency

Data

Our data is siloed, latent, and oriented to

products and channels.
15
No unstructured data. No Social Media.

Analytics

Offer Management

Our analytics are geared to propensities not

relationships and behaviors.

Every group, product and channel for itself no

customer optimization.

Every group, product and channel for itself

no customer or bank optimization.

Staff are not confident in acting on offers our

presentation rates are low. 2013 IBM Corporation

How organizations evolve with IBM Big Data & Analytics to address challenges
External:
- Social media
- Geospatial

Master
Master Data
Data Management
Management

Reporting
Reporting &
&
Dashboards
Dashboards

De-duplicated
customer
information
De-duplicated
customer
information
Ingestion and
Real-Time
Analytic
Zone

3
Right-time
customer
interaction

analysis

Warehousing
Warehousing

Real-time data movement, filtering,

Data Repository
and analysis (annotation,Master
classification,
1 correlation, etc)
Structured and unstructured data

3 Personal

offers
2
2 Deep

Connectors

descriptive
and
predictive
models

ODS
ODS

Channels
Channels

EDW

Microsegment
targeting

2
Personal
customer
experience

Landing and Historical Zone

Analytic Appliances

Marts

Structured and unstructured data

Single data hub across products,
channels, behaviors and relationships

Internal:
- Call center notes
- Secure messaging
- Clickstream data
1

Business
Results

2 Real-time

Data
Data Integration
Integration

Analytics, Reporting
and Action Zone

Self-provisioning
Deep analytics

3 Consistent

crosschannel
experience

Engaging
with
relevance

Historical Repository
3

Data

Data is integrated, recent, and holistic.

Customer view includes unstructured data and
Social Media.
16
We capture feedback to revise and optimize
analytic models.

Sufficient capacity to incorporate all feedback, including with low latency

Analytics

Offer Management

We have re-calibrated to the customer and

have new test and learn abilities.

We deliver the right information to the right

channel we capture feedback.

We optimize communication to maximize value

for the bank and customer.

Staff and leaders understand our goals have

the skill and motivation to deliver.
2013 IBM Corporation

IBM Big Data & Analytics Product Mapping

8

12

6
4 11
7
9

10

2
3

5
6

InfoSphere Streams

SPSS

InfoSphere BigInsights

InfoSphere MDM Server

PureData for Analytics

InfoSphere Information Server

PureData for Operational Analytics

10

DB2

InfoSphere Data Explorer

11

InfoSphere Warehouse

Unica

12

Cognos BI

17
2013 IBM Corporation

IBM Big Data & Analytics is the complete platform to support

this evolution
Master
Master Data
Data Management
Management

Analytic Appliances

crossVisualization
channel
and experience
Discovery

Predictive
Analytics

Marts

Industry
App

Hadoop
System

models

Functional
App

Landing and
Historical
Zone

ODS
ODS

descriptive
Application
and
Development
predictive

Channels
Channels

Connectors

DataEDW
Warehouse

Content
Analytics

Information Integration and Governance

Analytic Applications

offers

Master Data Repository

Data
Data Integration
Integration

Enterprise
analysis
Marketing
Management

Exploration /
Visualization

Warehousing
Warehousing

Business
Results
BI /
Reporting

De-duplicated
De-duplicated
customer information
information
Ingestion andcustomer
Stream
Real-Time
Computing
Analytic
Zone

Reporting
Reporting &
&
Dashboards
Dashboards

Analytics, Reporting
and Action Zone

IBM Big Data and Analytics is the integrated platform to support

this evolution
Master
Master Data
Data Management
Management

Reporting
Reporting &
&
Dashboards
Dashboards

offers

Master Data Repository

Marts
Analytic Appliances

crossVisualization
channel
and experience
Discovery

Predictive
Analytics

Hadoop
System

models
Accelerators

Industry
App

Landing and
Historical
Zone

ODS
ODS

Functional
App

Data
Data Integration
Integration

descriptive
Application
and
Development
predictive

Channels
Channels

Connectors

DataEDW
Warehouse

Content
Analytics

Information Integration and Governance

Analytic Applications

Warehousing
Warehousing
IBM Big

Exploration /
Visualization

Enterprise
analysis
Marketing
Data
Platform
Management

Business
Results
BI /
Reporting

De-duplicated
De-duplicated
customer information
information
Ingestion andcustomer
Stream
Real-Time
Computing
Analytic
Zone

Analytics, Reporting
and Action Zone

The IBM Big Data and Analytics Platform advantage complete

and integrated
The platform enables starting small and
growing without throwing away work
Integration between components lowers
deployment cost, time and risk
Key points of leverage

Analytic Applications
BI /
Exploration / Functional Industry Predictive Content
BI /
Reporting Visualization
App
App
Analytics Analytics
Reporting

IBM Big Data Platform

Visualization
and Discovery

Pre-built integrations between Enterprise

Marketing Management and Data Warehouse
components
Pre-built integrations between Hadoop System,
Stream Computing and Data Warehouse to
turn unstructured data into structured data

Application
Development

Enterprise
Marketing
Management

Accelerators
Hadoop
System

Stream
Computing

Data
Warehouse

Common metadata, integration design and

governance that provides the glue between
existing landscape and the new components
Common analytic engines across components
(i.e. write-once text analytics that run in both
batch and real-time)

Information Integration and Governance

The IBM Big Data and Analytics Platform optimizes offers and
cross-sell
Deep Analytics:
LOB can model and test new
ideas quickly through highperformance, appliance simplicity
Personalized offers can be
created based on all data

PureData for Analytics

Cognos and SPSS

Analytic Applications
BI /
Exploration / Functional Industry Predictive Content
Reporting Visualization
App
App
Analytics Analytics

IBM Big Data Platform

Visualization
and Discovery

Application
Development

Data:

Reduce latency to seconds

from days

Accelerators
Hadoop
System

Stream
Computing

Data
Warehouse

InfoSphere Streams
Include both structured and
unstructured data (secure
messaging, social media, etc)
Integrate Data into a single goto data hub, allowing LOB to
self-provision data for analytics

InfoSphere BigInsights

Offer Management:
Personalize offers based on full
customer data (structured and
unstructured), in near real-time

Unica

Provide a consistent, crosschannel view of customer

interactions

InfoSphere Data Explorer

Enterprise
Marketing
Management

Information Integration and Governance

Using Big Data & Analytics to Optimize Offers and Cross-Sell

BUSINESS VALUE and

CUSTOMER SUCCESS STORIES
22
2013 IBM Corporation

Value Tree decomposes goal into objectives, value drivers, KPIs and results
Goal

Objectives

Value Drivers

KPIs

Typical Results

Customer Offer Acceptance %

Increase 15 25%
Customer Cross-Sell

Increase
Revenue and
Profits
FTE (Employee) Productivity

Optimize
Offers and
Cross-Sell

Deepen
Customer
Satisfaction
and
Affinity

which improves
the customer
experience

Products-per-Customer (#/HH)
or Share-of-Wallet %

Increase 5 10%

Customer Profitability ($s/HH)

Increase 5 15%

Offer Presentation %

Increase 10 25%

Sales-per-Associate (avg. #)

Increase 10 35%

Customer Satisfaction %

Increase 12 15%

Net Promoter Score (NPS)

Increase 10 25%

Customer Satisfaction

Customer Advocacy
At-Risk Identified (# / month)

Improve
Customer
Retention

Customers At-Risk Attrition

Customer Engagement

Increase 10 25%

At-Risk Contacted (# /month)

Increase 10 15%

At-Risk Saved (# / month)

Increase 10 20%

Channel Visits / month

Increase 10 20%

23
2013 IBM Corporation

Major Italian Bank leverages

unstructured client data to
improve customer retention
Need
Drive customer retention activities based
on behaviors instead of only transactions

Link to the case study

http://public.dhe.ibm.c
om/common/ssi/ecm/e
n/imc14573usen/IMC1
4573USEN.PDF

Leverage branch teller notes, call center

notes and client emails to identify
changing client behaviors
Track social media sentiment analysis to
measure impact of targeted campaigns

Targeted Benefits
Reduce attrition from 6% to 3%
Optimize offers and cross sell to increase
average products per customer from 1.4
to 2.2
24
24

Improve client advocacy (NPS)

2013 IBM Corporation

ING rapidly analyzes client

behavior to personalize and
optimize offers and treatments
Need:
Rapidly analyze client behaviors to offer
personalized marketing offers across all
channels

Solution:
IBM PureData for Analytics, Unica Interact

Benefits:
Improved offer acceptance for incomplete
product requests by 50%
A 98 percent increase in key client interaction
performance metrics such as click stream data,
analytical reporting and queries
The marketing division is currently exploring
adding additional applications on the existing
platform given the success of the solution
http://www.youtube.com/watch?v=p7tesEdpWNo
25
25

2013 IBM Corporation

Using Big Data & Analytics to Optimize Offers and Cross-Sell

HOW TO GET STARTED

26
2013 IBM Corporation

The Big Data and Analytics journey to optimize offers and cross-sell
Typical Big Data and Analytics Adoption Path
Educate

Explore

Focused on knowledge
gathering and market
observations

Developing strategy
and roadmap based on
business needs and
challenges

Join the business

community

Validat
e

and rea
lize bus
in

Engage
Piloting Big Data and
Analytics initiatives to
validate value and
requirements

Deployed two or more

Big Data and Analytics
initiatives and
continuing to apply
advanced analytics

ess valu
e

Big Data and Analytics

case studies,
whitepapers and IBM
Institute for Business
Value reports
IBM
Briefings,
Solution
Centers

IBM Readiness
Assessments
for Big Data
and Analytics
to optimize
offers and
cross-sell

Self-paced learning, exploration

with downloads and test
environment
BigDatauniversity.com, YouTube Big Data
Channel

Join the technical

community

Execute

e
expertis
in
a
g
d
n
ogy a
technol
e
h
t
n
r
Lea

Solution Design and

Proof of Concept
-Validate business value for
optimizing offers and crosssell
-Demonstrate Big Data and
Analytics capabilities to
execute use case

Enterprisewide Big Data

and Analytics
initiatives
-Incremental value across
multiple use cases
-Leverage investment
from re-using the same
Big Data and Analytics
platform
-Enterprise data platform
to optimize offers and
cross-sell

27
2013 IBM Corporation

Next Steps

IBM can assist in choosing the right path to deliver rapid

and measurable business results

A workshop to
help identify and
prioritize potential
use cases

A Client Value
Engagement to help
determine potential
business impact

A pilot to
Defining the
demonstrate new
components required
as part of the solution capabilities that could
be delivered to the
architecture
organization

28
2013 IBM Corporation

THANK YOU

29
2013 IBM Corporation