WESTPAC

GROUP

Westpac Banking Corporation ABN 33 007 457 141.

When CRM meets CEM Lea Wright

Head of Consumer CRM

27 February 2013

CRM PURPOSE

Help our customers achieve their goals and wellbeing

by understanding and anticipating their needs

and deepening customer relationships

By doing that we expect to achieve:

Deep and Valuable customer relationships

Customer Profitability

Productivity Benefits

TRENDS – MARKET

Aging Population

Mass Digitisation

– World that is Always On

Economic Transformation – at home

Rise of Asian Economies

Post GFC World

TREND - RISE OF BIG DATA

Increasing Volumes of Data

Blurring of Online and Offline presence

Challenge in funding nuggets

of gold in customer data

– insights and relevance

Timeliness and latency

Speed to action and execute

WORLD IN CHANGE – WAY WE UNDERSTAND AND APPROACH CUSTOMER

Faster we move to an Always On

Data Driven World

– where big data informs and delivers

offers

Faster we move back to principles of

Customer Service, Loyalty and

Recognition in addition to Sales

IT ALL STARTS WITH DATA DRIVEN, RELEVANT AND MEANINGFUL INSIGHTS

There are two sources of

Competitive Advantage:

Learn about your customers

faster than your

competitors

Put that learning into action

faster than your

competitors

LINKAGE BETWEEN INSIGHTS AND COMPETITIVE ADVANTAGE

Jack Welch GE Capital

INTERSECTION OF CRM, IT AND CUSTOMER EXPERIENCE

CIO, CMO and CX are

intersecting

and interdependent

3Cs

Capability

Campaigns

Customer Service

CUSTOMER LIFESTAGE AND INSIGHTS

Recognising key life events and customer behaviour to determine behavioural triggers for Always On offers and communications

• Life Triggers

• Event Triggers

• Behaviour Triggers

ONBOARDING – FIRST IMPRESSIONS COUNT

A customer will take up additional products if experience is positive

Or disengage with if a negative experience is left unresolved

Time to Active • Median Days

• Average Days

Active

The probability that

the remaining will

activate

Normal account

usage achieved

and transactions

Average days to

1st Transaction

SERVICE INTERVENTION: NEXT BEST OFFERS

Demonstrating a 1:1 relationship through our people,

providing the right offer and message,

delivered to the right customer through the right channel

at the right time

Service Intervention NBOs

eStatements

Data Quality

Avoiding Fees

Old tran/new tran

No/Inactive Internet Banking

(Q1)

Sales/Revenue NBOs

Credit Card X-Sell

Home & Contents X-Sell

Credit Limit Increase

Consumer Bundle

Consumer Savings

No Debit MasterCard

Personal/Flexi Loan X-Sell

(Q4)

1:1 PERSONALISED COMMUNICATIONS

Personalise Relevant

Communications

Sales Channel Tools

Named

contact

Local

feel

ALWAYS ON - MULTI CHANNEL MARKETING

Delivering data driven campaigns in the customer’s environment

in an integrated multi-channel multi-step way

Mobile

SMS

Tablet

Direct Mail

Inbound and Outbound

Voice Marketing

NBOs

eDM

Branch Leads

NBOs / Special Leads

ATMs

Online Offers

Online Splash Pages

Message Centre

Statement Messages

Statement Inserts

Operational Letters

Compliance Communications

Customer

INSIGHT DRIVEN DATA IS INFORMING “NEW FASHIONED” CUSTOMER SERVICE

Leveraging insights of customer behaviour and service failures

to create positive moments of truth and outcomes,

before they become complaints or defections

Complaints as a data source

Triggers for servicing ‘conversations’

Proactive service intervention and service experience

RECOGNITION OF CUSTOMER VALUE AND MOMENTS OF TRUTH

Structure Programs Around Key Moments of Truth:

• Onboarding – Welcome in Onboarding experience

• Retention – Recognised Value at early Attrition/Retention

milestones

• Recognise - High Value, long term customers with deep

relationships

• Servicing – Proactive Servicing intervention

THE WAY FORWARD – CRM MEETS CEM

Always On Multi Channel campaigns

Data Driven and Customer Lifestage Insights - relevant and timely communications to customers

Service Intervention - addressing moments of truth before customer defection

Recognition of Customer Value

REASON WHY – EMBEDDED CUSTOMERS MAKE GOOD BUSINESS

Questions