IBM Commerce Redefining Customer Engagement to Create Rewarding Experiences Nicholas Goldsmith
Julian Thomas Toohey
2
Personalized relevant experiences win customers
Consumers are becoming more demanding, and expect 24*7 financial
services anywhere anytime. Younger generation is going digital fast, uses a variety of channels and has low
brand loyalty.
China’s banking industry is undergoing major transformation
Digital banking will become commodity
Digital banking is going mainstream. Today, about 70
percent of Chinese consumers say they would open an account with
a pure digital bank.
70%
Customer loyalty is becoming a challenge
Chinese consumers are still among the least loyal in Asia. Less than half of Chinese consumers will remain loyal to their primary bank when
offered more attractive pricing terms from competitors, compared with
nearly 70 percent in emerging Asia.
70% 43%
Chinese consumers
Consumers in emerging Asia
Percentage of consumers who would remain loyal when offered more attractive pricing from competitors
Tendencies to shift undermines bank’s long-term businesses
Among the consumers in developed Asian markets, more than 80 percent said they were willing to shift some of their holdings to a bank that offers a
compelling digital proposition. In emerging Asia, more than 50 percent
of consumers indicated such willingness.
50% 80%
Consumers in developed Asia
Consumers in emerging Asia
Percentage of consumers who would shift some of their holdings to a bank offering a compeling digital proposition
Consumers in developed Asia have a clear view of what digital features they are seeking
Source: see details in speaker notes
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Intensifying competition in Banking
Simple3: Mobile-only bank with differentiated digital experience Fidor Bank4: “Bank with friends”: social business model Smarty Pig5: seek contributions through social networks
Lending Club6: Peer to peer lending platform Currency Cloud7: Payment engine platform
Disruptors enter core payments
Virtual platforms challenge traditional banking functions
Virtual banks compete with traditional banking
Paypal1: Pioneer in online money transfer services M-pesa2: mobile based money transfer service
Disruptive forces are dramatically impacting banking with non-traditional players entering the industry
Partnering
Agility Innovation Analytics Digitization
As a result, banks will need to develop key capabilities like partnering, agility, innovation, analytics and digitization to transform
We don’t expect to call your toll free help line and be placed on hold forever. We expect to get the attention of someone on Twitter or Facebook NOW. When we don’t, we get the attention of plenty of others about our problems.
Attention marketing is where there is hope. You can’t just be providing a wonderful product anymore. You have to use your platform as a business to make their lives more meaningful.
Our attention spans are shorter
We don’t see ourselves as passive “consumers”
Technology has changed customer expectations
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“The last best experience that anyone has anywhere…
…becomes the minimum experience they want
everywhere”
Trend 1. Expectations have risen – the digitally enfranchised customer / employee demands more, faster
Trend 2. Disruptors are fueling higher expectations and innovating with new business
models Trend 3. Big data and advanced analytics create the opportunity to learn more about customers and take tailored action
The new reality...
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The focus shifts to Human Experience
Designing Experiences Emerging Technologies Mobile as a Transformation Enabler Social
Designing Customer / Employee Engagement and Experiences
Extend physical experiences with digital 2
IBM Confidential
Distinctive and Creative Digital and Physical Convergence Smarter Bank Branches and Retail Stores
our design thinking experience
• “Good design is good business.” • – Thomas Watson, Jr.
Citi Mobile Lite: The First Banking App on the Apple Watch
anz group
• Problem • Providing a quality experience was
proving labor-intensive and costly. • Insight
• Field representatives and financial advisors were dependent on a very involved and time intensive process to best advise high net wealth investors.
• Idea • Invite Watson to close the deal.
• Impact • Watson now helps advisors deliver
advice with a consistent standard of quality while eliminating the weeks’ worth of work it used to require. The bank even plans to expand Watson’s responsibilities to other areas as well.
taps into a wealth of knowledge
Systems of Engagement
Systems of Record Systems of
Insight Drive every decision
Fuel every interaction Power every process
We are moving from a process-centric to an insight-centric world
Inside Solutioning
Predictive Analytics
Event Detection Real-Time Decisioning
Contact Optimization
Campaign Management
Marketing Operations
Email/Mobile Marketing
Digital Analytics & Experience
Management
Engagement Use Cases should focus on the desired business outcomes
Personalized Onboarding
“Hand Raiser” Triggers
Digital Channel Analytics & Personalization
Financial Wellness & Guidance
Next Best Question
Strengthen net-new and new-to-product customer relationships using models, batch-based rules and cross-channel delivery
Increase marketing, sales, and service opportunities through detecting events in batch, near-real-time and real-time
Augment user response and click rates by testing, refining and optimizing prospect/customer interaction
Enhance engagement and deepen relationships by using “information & analytics as a service” to guide the customer on the path toward financial wellness
Drive improved service and cross-sell by supplementing what we know about the customer with the next logical question
Strengthen net-new and new-to-product customer relationships using models, batch-based rules and cross-channel delivery
Increase marketing, sales, and service opportunities through detecting events in batch, near-real-time and real-time
Augment user response and click rates by testing, refining and optimizing prospect/customer interaction
Enhance engagement and deepen relationships by using “information & analytics as a service” to guide the customer on the path toward financial wellness
23 © 2015 IBM
Banorte Makes it personal across all channels to drive loyalty – with IBM Global Services and all powered by IBM Marketing and IBM Customer Analytics Solutions.
40% 20% Improvement in operating efficiencies
Return on equity 200M
USD expected bottom line benefit in the first 24 months
ING Bank
17 3x Week reduction in campaign cycle times
Increase in customer responses 35% Reduction in overall
marketing costs
24 © 2015 IBM
Transforms their marketing effectiveness through a focus on personalization -- all powered by IBM Marketing solutions.
Web & Mobile Channels Reduce People to Data
See Your Digital Channels Through the Eyes of
Your Customers
Organizations aren’t even aware of bad experiences
1 in 10 US adults contact the company directly after a “poor” or “very poor” experience using a website or mobile application.2
Without understanding your customers
conversion rates down? why customers struggle?
most profitable customers? more relevant offers? reaching intended audiences?
prevent customer churn?
Zions Bank Wanted to understand and improve their customers mobile banking experience as they transitioned from web browser to mobile channels – achieved by IBM Customer Analytics solutions.
72% Increase in completed applications on mobile devices 60%
Improvement in customer support response times
30 © 2015 IBM
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