Customer Value Maximization for a leading private sector bank in India

A Xerago Case study

Assignment Background

Being one of the largest private sector banks in India, this client saw rapid growth and was keen on enhancing relationships with customers. Leading with a Technology overdrive, the bank implemented a Data Warehouse solution with real-time connectivity to the Personal Banker terminal at the branches. The core banking system had the entire customer profile appear when a branch executive hit the F4 hot key on the keyboard. The bank realized that they were NOT succeeding in maximizing value from their existing customers and needed a solution that could get their CRM programs to work.

The Goal

To improve extension (Up-Sell / Cross-sell) on existing customer base.

The Scenario

CRM campaigns

TVC/Print/OOH

Display media

Poor Cross-product holding ratio

RESULTING IN

Tactical Operations Outcomes

eDM

Search

Poor response rate

Poor value maximization from existing customers

Customer Value Maximization Approach

By making interventions on,

Through objective measures, a

snapshot of client’s marketing

effectiveness on many levels and

dimensions was constructed and

this helped us objectively

demonstrate the effectiveness of

the client’s current marketing

programs.

Based on the current state and

desired end state, the road-map

which involved a re-architecture

of strategy and re-alignment of

resources was developed and

interventions were made to

catalyze the marketing growth

engine.

This was the high value growth

phase where all possible marketing

variable combinations are tweaked

on a concurrent basis to produce

the optimal spend to impact

outcomes. Learning was constantly

updated for ongoing maximization.

MEASURE MANAGE MAXIMIZE1 32

In order to achieve client’s goal, Xerago deployed its proprietary Customer Value Maximization framework, which involved the following 3 stages:

Process TechnologyMedia

The Measure phase

• Low number of campaigns per year due to which they were not able to derive any insights or drive cross-selling.

• The information given by the CRM was highly complicated and difficult to interpret.

• The current CRM systems were creating information fatigue for relationship managers

• The data generated by multiple sources need to be integrated in to a single format to derive insights.

Parameters X-rayed

Marketing Programs

Evaluation Results

Channels

CRM

The Manage phase – Activities & Areas Impacted

Teams Impacted

Process Overhauls:

This involved redefinition of the campaign process which included minimizing the role of IT for marketing. This also involved setting up of campaign calendar to facilitate lights out campaigns

Media Interventions:

This involved identification of channels that a customer is most likely to respond to and reaching out to him with the right offer at the right time.

Technology Interventions

This involved deployment of Enterprise Marketing Automation tool, offer insights engine, Uniformat data conversion system, CRM and Data warehouse.

The Manage Phase – Teams Impacted

Alternate Channels

Analytics

IT

Marketing Communication

Marketing OperationsTEAMS IMPACTED

Marketing Services

The Maximize phase

Xerago setup a concurrent framework to measure the effectiveness of the interventions made to

ensure desired results are delivered. This was achieved by establishing benchmarks for various

interventions and real-time optimization of the efforts. Below are the outcomes.

20% increase in response rate

15% increase in cross-product holding ratio

12% increase in Customer Lifetime Value

ROI achievement within 30 days

2000 campaigns a year without lift in headcount

Thanks

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Xerago is a Customer Value Maximization company headquartered in Chennai, India. Ever since inception, Xerago has evolved marketing solutions for clients, using a

combination of Robust Process, Creative Excellence, Cutting edge Technology and Discrete Measurement. Over time Xerago has created IP both tangible and in-tangible

that enables the entity to retain its unique advantage of being among the few entities globally that has stellar depth of consulting with a combination of large scale

marketing outsourcer.

More About the Client:

The client was amongst the first to receive an in principle approval from the

Reserve Bank of India (RBI) to establish a bank in the private sector, as part of

RBI’s liberalization of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 and has its registered office in Mumbai, India. The

client is the fifth largest bank in India by assets and the largest bank by market

capitalization as on 1 November 2012.