KeyBank: Organizational Alignment

Client-Focused Approach

Client-Focused ApproachKeyBank decides to take a segment focusBased on new corporate priorities.

I want KeyBank to be at the forefrontof a movement awayfrom an obsession with selling products to one that emphasizesmeeting client needs.

Henry L. Meyer IIICEOKeyBankIt becomes incumbent on MarketingTo demonstrate the value of this approachA Mandate From AboveMarketing Creates BelieversTo bring our segmentation efforts to fruition, we had to find a way to prove the value of segment-focused customer initiatives across the organization. Chief Marketing Officer, KeyBankValue

Client-Focused ApproachA Transparent Evaluation Process Creates Buy-in for Segment InvestmentsSegment Initiative Competition*Initiative Screening Criteria: Yields X percent projected ROI Provides a sizeable opportunity Addresses a specific segment priority Delivers an enhanced segment experience Aligns with corporate priorities Executed on appropriate time horizonPreworkSegment InitiativeBrainstormingStage 1:High-LevelBenefit HurdleStage 3:Pilot ResultsHurdleFully FundedInitiativesStage 2:Business CaseHurdleSegmentsGrowMaintainControlCostControlRiskValue ApproachInitiatives that are obvious nos are killed by theEOC before any large-scale analysisFinance standardizes and Tests assumptionsin order to Establishfinancial objectivityMonitoring pilot results lowersUncertainty around segment-investments and generatesOrganizational momentum

The Key to SuccessWinning initiatives build cross-business support for increased segment-based investment.and encourage KeyBank to expand the breadth and scope of the programMarketing Budget AllocationIllustrativePercentage200320042005KeyBank isIncreasing thePortion of theMarketing budgetAllocated toSegment-basedinitiativesSegment-Related Marketing SpendAll Other Marketing SpendQuantifying the financial impact of segment-focused initiativesIn our growth and differentiation strategy has led us toReallocate substantially more of the marketing budget toThese efforts.Chief Marketing Officer, KeyBankShow Them the MoneyNext Steps for KeyBank Segment Champions KeyBank isAppointing full-time segment managersto head each segment team Project Manager Pool KeyBank iscreating a pool of project managers toImplement segment initiativesIncentives KeyBank is planningto link segment teams incentives tosegment initiative success

Making it happenImplementing a structure to enable human capitol development to go deep as well as wide enables evolution. Reporting to the CMO assists empowerment.CMOField MarketingLOB MarketingMedia

Appendix

Tools that Support a Client Focused Approach:Decision Engine EnvironmentOBIITMDesktopEmailMailOTMHouseholding Decision Engine - DEBusiness Rule Registration ToolProspect DatabaseTriggersMarket SpaceChannel OptimizationDirect MarketingInitiativesServiceGuidelines

Tools that Support a Client Focused Approach:Marketing Performance OptimizationAnalysis Input FilesExploratory Data Analysis (EDA)DataEngineSPTScenario Planning Tool:An interactive, web-based software interface that allows marketers to propose different what if scenarios and projects the related results in terms of balances, EPA, and accounts.A system of models using complexmathematical & statistical relationships.Primarily employs Neural Networks, TimeSeries modeling and Regression techniques.A set of self-training models which continuouslyimprove with time.ClusterAnalysisNeuralNetsCHAIDTime SeriesARIMA