Pub. 2 2014 Issue 1

winter 2014 25 SERVI CES Leveraging big data puts all of this information at your fingertips and allows your in-branch personnel to make the best use of their time with account holders and reinforce your brand. Measuring Market Potential and ROI There’s no doubt that data helps marketers make better decisions. But strangely, a survey by the Columbia Business School Center on Global Brand Leadership and the New York American Mar- keting Association of 243 CMOs and other marketing executives found that 57 percent of marketers don’t base their budgets on ROI measures. Most base budget decisions on historical spend- ing, and more than a quarter — 28 percent — said they base their budgets on gut instinct. 4 There’s no reason to market in the dark! With all the data your institution has, you can not only bud- get— and defend your spending — based on actual returns, but also hone your marketing initiatives to dramatically increase the likelihood of success. For example, if your institutional goals for the coming year include increasing loan amounts by a given percentage, you can easily discern the market potential for that objective given your current account holder base and your market. Data makes this possible. To meet your mission, examine your established and new account holder populations to assess and measure purchase propensity and potential. By segmenting your account holders and identify- ing which particular products and services they are most likely to buy, you can fine-tune your marketing to target only those with the highest propensity to purchase. Statistical models make it possible to successfully predict future buying behavior relative to loans, deposits, investments, insurance, and electronic products and services. This laser-focused marketing can be applied across all types of media, from direct mail and email to statement and contact center marketing. Another way to look at potential is to examine your account holder base and see where your institution has gaps. For example, data analytics will tell you how your institution ranks relative to industry averages in checking penetration, deposits and other benchmarks. This analysis pinpoints marketing opportunities for you, while segmentation and purchase propensity models show you exactly which account holders to target for particular prod- ucts and services. Refining Account Holder Lifecycle Marketing Acquisition. Onboarding. Cross-selling. To maximize the value of each account holder relationship, it’s imperative to know who’s at which stage of the lifecycle and what they need from your institution to become loyal, long-term and profitable account holders. Data is the only way to make lifecycle marketing work well — and in a timely manner. For acquisition, using your existing account holder data and market data makes it easy to target the right prospects for your in- stitution. For example, you can attract new-to-the-neighborhood checking account holders via targeted offers for people who have just moved into your branch service areas. You can target account holders who have a loan at a competitive financial institution and present them with a highly attractive offer from your institution. You can even find out when your account holders are shopping for a loan and send them a pre-qualified loan offer within 24 hours of their credit bureau inquiry. When it comes to onboarding, data-driven marketing optimizes the value of new account holder relationships with a welcome-en- gage-grow-retain model of timed, multichannel communications. Effective onboarding addresses first-year attrition — typically between 20 percent and 30 percent 5 — and increases cross-selling opportunities. And with data analytics, cross-selling becomes a highly predictive revenue-builder rather than scattered wishful thinking. Driven by data and targeted by a propen- sity-to-purchase model, you can understand your account holder and product dynamics, predict your account holders’ propensity to purchase additional products and maximize your return on marketing investment. This is the kind of data analysis you need to make better marketing decisions. Instead of being overwhelmed by big data, it’s time to embrace it. Understand it. Exploit it. And leverage it to the benefit of your institution. n Effective onboarding addresses first-year attrition — typically between 20 percent and 30 percent 5 — and increases cross-selling opportunities. 1 IBM Global CMO Study, 2011 2 Gartner Webinar, 2011: By 2017 the CMO will Spend More on IT Than the CIO 3 Advertising Age, February 12, 2012, “When CMOs Learn to Love Data, They’ll Be VIPs in the C-Suite” 4 BRITE-NYAMA Marketing Measurement in Transition Study, 2012 5 Harland Clarke internal campaign data Harland Clarke’s robust data analytics services can help your institution make the most of its marketing dollars. Our Stratics® product suite provides predictive modeling intelligence that increases the effectiveness of your marketing and relationship strategies for individual account holder and market segments. Our Lifecycle Marketing Solutions use data-driven insight to develop customized strategies for acquisition, onboarding and cross-selling. © 2013 Harland Clarke Corp. MKCOM-0989-01