The business challenge
The relationship a customer has with a retail bank, where that individual has multiple accounts across a range of products, can be the most complex in the credit industry.
Traditionally, banks have managed each customer account separately. However, this approach will not reflect the total relationship, which may result in inconsistent and potentially contradictory strategies.
In today's competitive and dynamic banking market, this quality of customer service is no longer sufficient to attract, and keep customers. With increasing acquisition costs, banks must make the most of every opportunity to build stronger relationships.
Increasingly, banks are recognising the significant benefits gained by implementing customer-level management to understand and capitalise on existing customer relationships.
The answer
The key to Decision Analytics is the creation of a customer profile based on behavioural data from the entire product range.
Experian’s proposition for customer management in retail banking brings together automated customer-level management, data management, predictive analytics and expert consulting to enable banks to connect with customers as individuals rather than as a disparate collection of accounts.
Data is aggregated from all the customer's accounts and combined with demographic and credit bureaux data. Using behavioural scoring models at account and customer level, a customer profile is created that encapsulates the individual's entire relationship with the bank.
This profile will incorporate measurement of risk, customer profitability, propensity and lifetime value to ensure the dynamics of the customer relationship are understood and used to drive a wide range of appropriate and relevant customer management strategies. These strategies can be applied at both the customer and account level.
In addition, the customer profile is used to streamline and automate a wide range of activities such as customer reviews, application decisioning for existing customers and collections management.
Business Benefits
- Identifying the best customers
- Increasing income with additional lending
- Increasing sales by making effective use of resources
- Reducing bad debt write off
- Reducing collections costs
- Increasing cross sell
- Achieving compliance with Basel II requirements
Testimonial
“We have been able to rationalise the customer definition by bringing together all products into one system for the first time. permanent tsb is now leveraging many benefits from the single customer view and this solution will play a crucial part in helping to define and implement the bank's strategic direction for many years to come.”
Permanent tsb, Irish Retail Bank