Martin de Lusenet, ING NL Customer Intelligence

Interactive marketing ING Domestic Banking NL

Interactive marketing

2

Interactive Marketing refers to the evolving trend in marketing

hereby marketing has moved from a transaction-based effort to a

conversation.

The definition of interactive marketing comes form John Deighton at

Harvard, who says interactive marketing is the ability

to address the customer,

remember what the customer says

and address the customer again in a way that illustrates

that we remember what the customer has told us (Deighton 1996).

Interactive marketing is not synonymous with online marketing.

About ING Bank Netherlands

Client base

8.2 million private customers

600,000 SME/business customers

Customer contacts (weekly)

Internet

Call

Branches

ATM

Mobile

10,000,000 visits

200,000 inbound calls

200.000 visits

2,000,000 transactions

10,000,000 visits

Marketing campaigns

70 ad hoc campaigns per year

100 daily running event campaigns

1000 inbound NBA offers

Data warehouse

8.8 million customers

84 months data history

5,000 data attributes

2.5 billion transactions

8 billion pageviews

250 interfaces

Oracle, Netezza, Hadoop

Physical presence

260 local branches

2,600 ATM’s

Service Model: Back to

Basics A ‘full service’ bank

Customer Centric: services in a smart, simple & professional way

Multi-channel model: „self service‟, advise when needed • 90% customer contacts through direct channels (service, sales and

leads)

• Modern branche-shops with extended opening hours

• Sales force concentrated in specialised sales forces

• Relationship banking for Private Banking and (Mid-) Corporates

Managed complexity: business model with centralised governance

& superior processes

Do it yourself, advise when needed

Power to the customer

“I have an offer …”

offer

Outbound

“Let me find the best group of

people to tell about it.”

“Let me find the best offer for

this person.”

offer

offer

offer

offer

“I have a person …”

Inbound

Shift

from

Out- to Inbound applicable to

larger group of

customers

Market pressure for change

Customer getting in control

Steep decline of NPV

traditional campaigns

Stop Information overload customers

Need to exploit sales chances in all channels

Centralisation of marketing

Strengthen marketing accountability

Marketing needs to focus on ‘the what’,,

Customer Intelligen on ‘the who’

Channels on ‘the how’

Cutting costs

Action needed

Branches I nterior: relaxed & modern

Introduction | The World is changing| The new way of banking | The new Bank branch | Conclusions

Assisted Banking: sales counter

Introduction | The World is changing| The new way of banking | The new Bank branch | Conclusions

Number of branchvisits YEARLY= Number of visits in 3 DAYS in digital channels

Within 2 years 95% of customer visits will take place in digital channels, and 71% will be mobile.

In September 2013 number of payment transactions mobile= number of payment transactions web

Customer interaction Before

No differentiation in channel, propositions and timing.

Marketeer uses his ‘guts feeling’ for defining the best suitable proposition

Now and growing

Differentiated, personalized offer in the most preferred channel(s)

Proposition based on customer insights

Best offer is based on business rules & customer insight

Not tailormade Tailormade

Inbound offer optimisation Payments

P1 P2 P3 …

Savings

S1 S2 S3 …

Mortgages

M1 M2 M3 …

For every product segment several

offers are developed. Every

customer is selected for at least one

offer in every product segment

Payments

P3

Savings

S2

Mortgages

M1

P3 S2 M1

For every offer the expected value will be

calculated. The offerlist will be sorted based on

the marketing score

select

prioritise

2 3 1

P2

4

P2

A customer will only be

selected for the offers

suitable for him / her.

P3 S2

For every channel only the suitable offers will be

selected.

filter

1 2 3

P2

10

Marketing Score

of the NBA = Weight x + Minimal value Prop. to

respond

NBA formula

Based on

models Used to

‘push’

Tool for

marketing

Result •1 database with 70 million offers, each with a marketing score

•Marketing score is used for ranking the offers for each customer

•For every single list of NBA’s is created (5 for Call, 3 for Internet)

•Proces is repeated daily, models are rebuild every month

Marketing at ING NL past, present & future

Phase 1

Basic implementation

• Migration to IBM/UNICA,

decommisioning „old‟

systems

• “Old school” one off

outbound with the use of

IBM/UNICA Campaign

• Inbound campaigns for

the branches with

IBM/UNICA Interact

Phase 2

Implementation of the

Outbound Event Machine:

• Daily events for mail & e-

mail

• Migration of „old school‟

campaigns to NBA driven

campaigns

•Implementation of

modelfactory with

IBM/UNICA Predictive

Insight („lights out

modelling‟)

• Make use of IBM/UNICA

Optimise for optimising

campaigns

Phase 4

Upgrading to a high

performance platform:

•NBA‟s on Mobile platform

•Upgrade of hardware

platform (Pure, Netezza)

•Implementation of

streaming marketing

•Usage of Hadoop for Big

Data cases

• Retargetting ING

campaigns outside the ING

domain

Jan. 2008

Phase 1 live

Aug. 2010

Phase 2b live

Next steps Milestones 2008-2010

Feb. 2008

Phase 2a live

Phase 3

Connecting inbound

channels (Call & Click):

• Call-center agents use

NBA‟s for Sales & Service

•Banners, graphic, textlinks

on the website driven by

NBA‟s

•Implemetation of

IBM/UNICA NetInsight

(open & closed)

•Implementation of

Marketing Operations

May.. 2012

Fase 3 live

2011/2012

End state One “marketing”-engine for all (relevant) channels

Internet

Open

homepage

Open

productpages

Secure

homepage

Open

Logoff page

Secure

landingpages Call outbound

Branches

E-mail

Call inbound

Mail ATM

Inb

ou

nd

Ou

tbo

un

d

Banners at

non-ING domains

Fase 4 ?

Nieuw

in fase 4

Sales Force

A few business rules

Homepage & workbench

Explanation • Tailor made

offers are placed on the workbench that’s visible everywhere

• The three best

NBA’s are shown, the first supported by graphics

3 NBA’s

Customized

Marketing

Logoff Page

1

5

1

6

Customized Marketing Web

1

7

Website •60 mln. bannerviews weekly

•250 NBA’s developed/changed in 2013

•CTR NBA’s 3 x higher than default offers

•20% of NBA’s meant for service

Proces Click-Through-Ratio

% of total internet sales

Call •700 different NBA’s

•30% of Calls NBA is used

•Response rate: 23%

IT infrastructure (end-state) („Big Data‟)

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Marketing DWH Marketing apps Real-time service

Exploration

environment

‘Real-time bus’

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open closed

OMNITURE MONIFORCE

clicks

Former days

As of 2012 Unica NetInsight

clicks

clicks

By the use of cookies ING is capable of

personalising 50-90% of the clicks !

Remarketing on webforms (1)

Form

Netinsight Report

New Challenge

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The ING NL Mobile app:

•2,0 mln downloads

•4,5 star in iTunes store

•Focus on tablet

•In sept. 2013 serviced more payment transactions than ING.NL

•App user logs in 6 times more than on the website

•App will be connected to NBA engine in Q1 2014

Business implications

Q&A‟s

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