Actionable, strategic advice on IT, business, and ... · PDF file• Singapore-based bank...

©© 2009 WAUSAU Financial Systems2009 WAUSAU Financial Systems www.wausaufs.comwww.wausaufs.com Page 1

Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry

Targeted Marketing at the ATM

Kate MonahanAnalystAite Group

©© 2009 Aite Group, LLC 2009 Aite Group, LLC www.aitegroup.comwww.aitegroup.com

Aite Group (eye-tay)

Research and advisory firm that helps financial services firms

-- and their providers -- profit from customer, technology,

and regulatory change


Aite Group Bank ATM Executive Study

• Aite Group conducted a survey of 23 of the top 80 U.S. bank ATM executives

• Study fielded from February to April 2009

• Targeted marketing one of many areas included in the study


Agenda

• What is targeted marketing and how might it help your institution?

• What is the current state of targeted marketing at the ATM channel?

• What are the challenges banks are facing in moving to targeted marketing?

• Examples of global bank use of targeted marketing• Case study: First Tennessee’s use of targeted

marketing


What targeting marketing at the ATM offers

• Opportunities to reach out with personalized marketing message to your customers and non- customers

• Ability to customize your marketing messages for the self-service media

• Ability to deploy campaigns without the heavy costs associated with paper marketing efforts


Few US Banks are taking advantage of targeted marketing


Challenge #1: Outdated ATMs


Challenge #2: Disjointed operating systems


Operating systems greatly vary by institution

©© 2009 2009 AiteAite Group, LLC Group, LLC www.aitegroup.comwww.aitegroup.com

Targeted Marketing In Use: Asia-Pacific

• Singapore-based bank with nearly $80 billion in assets• Between 70-80% of customer transactions take place at

the ATM– Started with integration of ATM marketing software with

bank’s CRM solution– First used for personalization at the ATM– Moved to offering targeted marketing at the ATMResults60% uptake in setting preferred transaction option50% higher uptake via targeted ATM marketing than direct mail


One-to-One ATM Marketing


Outline

• Background• Product/Vendor Selection• Process• Types of Campaigns• Challenges• Results


Background

• First Tennessee Bank, a division of First Horizon National Corporation, is based in Memphis, TN.

• Over 6,000 employees with assets exceeding $30 billion.

• Named by Working Mother and AARP magazines as one of the best companies to work for.


Product Selection

• Needed a solution to ‘reach out and touch’ the customer

• Diebold’s Campaign Office offered a package that covered other needs.

• Cost effective channel of marketing

• Allows customer feedback

• Capability to customize screens

• Multiple campaigns can run at the same time.

• Campaigns can target a location or a customer segment.


Vendor Selection

• Convenience – works with our existing equipment.

• Availability – local office provides on-site support

• User Friendly – other programs were time consuming; harder to maintain

• Support – Outstanding technical support • Experience – Recognized and respected

name in ATM products


Process

• Style of campaign? (Display, prompt, or questionnaire)

• What products we will market?

• Method of delivery? (Location or Segment)

• How do we disclose product information?

• What type of prep work is required?


Getting Started

• Pilot of 10 ATMs • Ran one campaign for two months —

targeting non-bank customers • Added remaining ATMs and increased

campaigns to include “on-us” cardholders. Campaigns included checking, savings, CD, HELOC, HELoans, and Business Savings products.

• Campaigns and disclosures updated monthly. Marketing provides graphic files, coupon files, and the consumer segment file, which are uploaded into Campaign Office.


Example of campaign screen


Campaign example


Disclosure Example


Lessons Learned

• Most difficult obstacle — getting the consumer segment to upload because the file was so large.

• Issues with the print size being too small on the receipt.• Campaigns can auto deliver by setting a specified date;

sometimes one gets “hung-up” and requires manual intervention.

• Text to speech — words keyed in are not always pronounced properly (e.g. bonus).

• Recommend having a “test server and test unit” to see how it looks on a production ATM before campaign is delivered.

• ATM marketing channel is more cost effective than direct mail and customer responses can be seen immediately on reports.

• Customers’ transaction time not impacted by a campaign.


Results

• First campaign targeting “non-bank” customers had a 13% response rate

• Overall average response rate for “non-bank” customers is 11%

• Overall average response rate for “on-us” campaigns is 4%

• Best responses were on campaigns targeting “non- bank” customers where a promotional item is given away

• New accounts to date: 2,000


Questions?

Actionable, strategic advice on IT, business, and ... · PDF file• Singapore-based bank...

Documents

Transcript of Actionable, strategic advice on IT, business, and ... · PDF file• Singapore-based bank...