Creating a Culture of Optimization Hugh Kimber, UK Sales Director

& Dan Rainford, eCommerce Optimisation, Lloyds Banking Group

Introductions

Lloyds Banking Group

General Insurance, eCommerce

Dan Rainford

12 years at the company

Working in three divisions of the Bank: IT

Retail (online banking, eCommerce) General Insurance (eCommerce )

Webtrends

Sales Director, UK & Optimize EMEA

Hugh Kimber

12 years at the company

Financial Services Sector

Optimize EMEA

Why should we optimize?

Why should we optimize?

Campaign Success

Web

site

Eng

agem

ent

Acquisition costs

Top Benefits

Challenges with Optimization

First things first

Where do I start?

Analytics

Identify and quantify opportunities thru insight

Optimization

Test, segment and target to improve performance

Build momentum

Creating the culture Campaign success? …..This means Stakeholders

PUTTING IT INTO PRACTICE Lloyds Banking Group – Dan Rainford

Who are we… and what do we do?

We have more than 25 million customers, employ c115k colleagues and have some of the UK’s best known financial brands, including Lloyds, Halifax and Bank of Scotland

Lloyds Banking Group (LBG) is the UK's largest retail bank providing a wide range of banking and financial services, primarily in the UK, to personal and corporate customers

Our main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision

LBG is quoted on both the London Stock Exchange and the New York Stock Exchange and is one of the largest companies within the FTSE 100

Our leading brand in England Our challenger brand in England Our leading brand in Scotland

History…. of the bank

14

1765 Foundation: Taylors & Lloyds founded

1852 Foundation: Halifax becomes the UK’s largest building society

1997 Became a bank: Demutualisation creating 7.5m shareholders

2001 Further growth: Merged with the Bank of Scotland to form HBOS

2009 Acquisition: HBOS becomes part of Lloyds Banking Group

1865 Expansion: Lloyds Banking Company formed

1995 Further growth: Lloyds acquires TSB forming LloydsTSB

1928 Further growth: Halifax and Halifax Equitable building society merge

1695 Foundation: Bank of Scotland founded

1810 Foundation Trustee Savings Bank or TSB founded

1776 - American Declaration of Independence

1859 - Darwin’s origin of the Species is published

1876 - Alexander Graham Bell patents the telephone

1969 - First Man on the moon

1996 – Dolly the sheep is cloned

1837 - Queen Victoria comes to the throne

Insurance… more specifically Home insurance! We offer life assurance, pensions, investment products and general insurance

The General Insurance business is one of the largest underwriters of personal insurance in the UK

We operate primarily under the Lloyds TSB, Halifax and Bank of Scotland brands

We’re located across the UK with sites in Leeds, Bournemouth, Bristol and South Wales

Challenges… Improving conversion

16

Agility

What’s the optimal?

Resource constraints

Its not always easy to make quick changes

Getting it right first time is not always possible and with finite budgets or availability it can be hard to make best use of that limited resource

Is the proposed change(s) really better than the current process. This is perhaps the most pertinent point, will the change do what you expect it will

How Optimize… has helped

Agility

Compare performance

Idea generation

The speed in which you can turn a concept or an idea in to a live test has impressed

What can we do and how should we approach a change. We’ve had some really useful discussions which have helped shaped change beyond our own ideas

Knowing you can compare performance of any change(s) with the existing process you have is quite powerful

Results Leave the winner live

Have helped me through many discussions with risk and compliance areas - ‘change supported with real customer performance statistics’

The ability to leave live a champion test has to be one of the most valuable elements. You get the benefits of an optimal test right up to being able to make the change

Real Examples… and the Results!

+ 11% to the next steps

Re-naming buttons

+ 20% increase to sale + 9.8% to sale

First visit Returning visit

- Reduction in ancillaries

Real Examples… and the Results!

+ 3% starting a quote Reduced noise

Optimal page structures Baseline current process

Marketing content

+ 28% monthly DD selection + 300% annual DD selection

Sustained conversion No increase in calls

Payment Options Re-building pages

+ 150% Minor ancillaries + 50 - 70% Major ancillaries + 6% Average ticket value

- Negative sales Once live 40% reduction in one off card payments

What’s Next?… what does the future hold

More page re-designs More step / journey alterations Smartphone and tablet testing Optimisation of the non-customer facing insurance systems (Call centre)

GROW YOUR OPTIMIZATION PROGRAMME

Building YOUR culture – Final thought

The magic combination

Business Process & Resources

Technology Successful optimisation programme

Grow YOUR programme

Everything was Tested

“We started with just one simple experiment back in December of 2007. This experiment taught us that every visitor to our website was an opportunity” Dan Siroker – Ad Director and Analytics for Obama Campaign

The Maturity Curve C

onve

rsio

ns

•  Web Analytics •  Measurement •  No Testing

•  Ad Network Targeting

•  A/B/n Testing •  Basic MVT -1-3 areas •  1 Element Targeting

•  1-Project at a Time

•  More Advanced MVT •  In-session Segmentation •  Multi Element Targeting

•  Frequent

•  Personalization •  Integrated Optimization •  External Segment Use

•  Social & Multi-Channel •  On-going

Optimization Maturity Phases

“Crawl ” Phase

“Walk” Phase

“Run” Phase

Operational Reporting

Building YOUR culture needs:

1.  Understanding

2.  Resource

3.  Momentum

4.  Stakeholders

5.  Business process

6.  Technology

Your ROI