transforming to compete in the age of the “always addressable consumer” — from vision to...
TRANSCRIPT
Transforming to Compete in the Age of the “Always Addressable Consumer” — From
Vision to Reality
Presented by Michele Elrod, Executive Vice President, Head of Marketing, Regions
1,650 banking office in 16 states
$122 billion in assets
Member of S&P 500 Index
Ranked top 10% in loyalty - Gallup
22,000 associates
Michele Elrod, Executive Vice President
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video series.
The Opportunity Of Addressable Engagement
Regions’ Transformation How We Are Getting There
Organization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
AgendaWatch this presentation in Merkle’s
Performance Marketing for Financial Services video series.
1st Party Data
2nd & 3rd Party Data
CRM Database
Today’s Funnel Expands the Reach of Addressability Throughout Nearly the Entire Consumer Experience
Unknown
High-value customer
Unknown
High-value customer
Low-value customer
The Addressable Mid FunnelSingular experience from
consideration through purchaseAwareness
Consideration
Intent
Shopping
Purchase
Lead
Desktop Phone Tablet TV
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Delivering These Experiences Requires Mastering the “3cs” of Addressability
CONTEXT
Everything weknow about the customer
Every asset we have to put in front of the
customer
CONTENTCONNECTIVITY
When we bringthe two together
in media and channels
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Orchestrating Interactions Becomes More Complex
Timing / frequency Platform
Device / format
Segment A
Segment C
Segment D
Segment Lifecycle
Awareness
Product Consideration
Request a Quote
Start Application
Process
CONTEXT
Message Offer
CONTENT
Treatment
Segment B
Brand Consideration
Segment B
Brand Consideration
4X
Mobile A
1
Life
CONNECTIVITY
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video series.
This Impacts Capability and Operating Model
Over Investment
UnderInvestment
Operating Model
Cap
abili
ty M
atur
ity
Level 1
Level 2
Level 3
Level 4
Level 5Customer Value Optimization,
fully integrated programs and campaigns
Contact Optimization, multi-touch campaigns, integrated measurement
platform
Basic multi-channel, model integration, and campaign
automation
Single campaign, simple data, little offer and customer
customization
Infrastructure focus, basic capabilities
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video series.
The Opportunity Of Addressable EngagementRegions’ Transformation
How We Are Getting ThereOrganization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.Agenda
Anticipate and address the needs of prospects and customers better than any
other bank
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video series.
Cross Channel Sales & Service Integration
Enabled by an automated technology platform that aggregates insights from transactions and
interactions to create, broker and disposition customized messaging, offers, guidance and
insights across all touch points.
Drive measurable business impact through
experiences that anticipate customers' and prospects’ needs
and preferences.
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video series.
Regions Bank knew a lot about how prospects and customers transact across channels…
BranchContact Center IVR Site
DigitalMedia Email
DirectMail Mobile
Social Media
What Was Working…
DDA ACLSMSP TSYSACAPS
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But a wealth of insights about how customers and prospects interact with us remain trapped within channel data silos
What Wasn’t…
BranchContact Center IVR Site
DigitalMedia Email
DirectMail Mobile
Social Media
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video series.
Site Behavi
or
FinancialGoals
Segment
Transactions Campaign
Response
ProductInquiries
Satisfaction& Loyalty
The Future State
Aggregated first-party data and automated decisioning drives enhanced customer interactions
Increased Context
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Why We Are Moving Down This Path
Better Leads
Better Conversations
Better Sales & Retention
Improved customer
experience
Increased competitive advantage &
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
The Opportunity Of Addressable EngagementRegions’ Transformation How We Are Getting There
Organization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.Agenda
Organize Everyone Around Change
Executive sponsorship and governance team Change champions – CRM vision stewards – Organizational integrators
Program governance, value pro forma and business results
Customer engagement vision1
CRM capability and gap assessment2
Technology assessment3
CRM blueprint and roadmap 4
Time
New and revised
initiatives Culture and People Change Management
Data and Applications
Decision Process Change
Organizational Realignment
Existing initiatives for change
5
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Marketer’s View of the World
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Technologist’s View of the World
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Analyst’s View of the World
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Begin Planning Process as a Team to Drive Consensus
Joe
Cross-sell not
personalized
by segment
No retention incentive in
place
KarenCan’t complete online need to go to branchDave
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Program Timeline & Channel Rollout Overview
Near Term WinsConnect select channel interactions to improve lead & disposition timeliness and trigger follow-up communications based on behavior (e.g., browsing, inquiry, attrition risk)
Phase 1 Aggregate behavioral data across key touch points and enable targeted prospect and customer nurture programs across channels.
Phase 2 Integrate channels and mediato collect behavior and broker messaging in near real time.
Branch ContactCenter
IVR Site Digital Media
Email DirectMail
Mobile SocialMedia
Branch ContactCenter
IVR Site Digital Media
Email DirectMail
Mobile SocialMedia
Branch ContactCenter
IVR Site Digital Media
Email DirectMail
Mobile SocialMedia
2014
2015
2016
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video series.
The Opportunity Of Addressable EngagementRegions’ Transformation How We Are Getting There
Organization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.Agenda
Mar
ketin
g A
utom
atio
n
Addressable Marketing Enablement
Audience Platforms
Channel ExecutionMedia Execution
Application Services
Analytics & Insights Platform Data Management Platform (DMP) Decision Management Platform
Content Management
Identity Management
Marketing DatabaseCustomer PII Data Anonymous Data
Site Contact CenterMobileDirect Mail SearchSocial Display Email DTV ATMBranch
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
Enterprise Measurement
Cross Channel & Media Attribution
Audience and Insights
Analytics and Insights Platform
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
The Opportunity Of Addressable EngagementRegions’ Transformation How We Are Getting There
Organization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.Agenda
Not All Customers are Created Equal
Recognize and value me
Provide me with personal security
Reassure my decision
Make me feel in control
Expects Easy Money Management
ExpectsLow Fees
Expects Convenience
Expects Efficient Customer Service
Expects Friendly Customer Service
The Company Provides a Secure Environment
The Company Puts Me In Control
The CompanyHelps Me Save
The Company Provides a Secure Environment
The Company Makes Me Feel at Home
I Want To Be…Financially Secure
I Want to Have…Family Security
I Want To Be…Financially Independent
I Want to Have…Personal Security
I Want To Be…Valued & Appreciated
Peace of Mind Driven
Family Driven
Achievement Driven
Peace of MindDriven
Quality of Life Driven
SAVVY DIRECTOR
Help me reach financial security
DEVOTEDPROTECTOR
EMERGINGACHIEVER
EFFICIENTPLANNER
FRIENDLYNEIGHBOR
OPP
$2,300AVG.
CHECKING REVEN UE
$1 B
30%
Households:
15 MMRegions scored customers:
1.4 MMMedian distance to Regions
branch:
2.15 miles
Market Opportunity
COMPETITIVE BRAND PERCEPTIONS
77% Strength: Easy Dig ital ExperienceWeakness: Being focused on Customer
DEPOSITSChecking: 99% Sav ings: 72% Money Market: 13% CD: 12% Debit/Check Card: 84%Pre-Paid Card: 1%
115
BANKING SOLUTIONSSaf e Deposit Box: 13% Ov erdraf t Protection: 48% Check-Cashing Serv ices: 23% Direct Deposit: 70%
LOANS & LINES of CREDITCredit Card: 42% Home Equity : 7% Mortgage: 15% Auto Loan: 9% Student Loan: 0% Personal Loan: 5%
129
ONLINE BANKINGBill Pay : 79% Mobile Pay ments: 30% Pay Pal & other Pay ment Apps: 51% Person-to-Person Pay ments: 40%
ADVICE & GUIDANCEAGE Content: 47% Budget & Management Tools: 46% ID Thef t Protection or Credit Monitoring: 12% *Inv estment & Asset Management
Products: 6%
PRODUCTS AND SERVICES
34%Strength: Appreciating and Accommodating CustomersWeakness: None
Strength: Respectful of CustomersWeakness: Being a stable company
49%70%Strength: Being a Stable CompanyWeakness: None 53%
Strength: ConvenienceWeakness: Easy Digital Experience
Savvy Director
122
Common Preferred Channel Segment Preference
Learning About Account Apply ing f or Checking AccountFunding AccountReceiv e Welcome / Receipt of Account MaterialsSetup Online Banking and Bill PayCross Sell of Other Products
Face to FaceFace to FaceFace to FaceMailFace to FaceMail
—Phone (83)—Phone (63)Online (117)Face to Face (79)
BANKING INTERACTIONS BANKING RELATIONSHIPS
CHANNEL USAGE
ACCOUNT ACTIVITIES
3% 17% 24% 56%
<1 Year 1 – 4 Years 5 – 9 Years 10+ Years
TENURE
NET PROMOTER
4% 10% 86%
detractors passives promoters
Not likely to recommend
Likely torecommend
RELATIONSHIP QUALITY
Most customers are willing to write a good rev iew 55%
10095%
ATTITUDEMost customers intend to remain a customer
INTENT TO CONSOLIDATEProducts or services from one bank into primary bank
51%
INTENT TO OPENNEW ACCOUNT
= 69%98 100
Branch Call Branch
Mobile App Email Mail ATM/Kiosk
CHANNEL USAGE
Usage
Issue Resolution
Interest
82 86 101 93 95 93
90 102 101
51%
102
99
98
17% 12% 22% 9% 9% 22%
Online Banking
96
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video series.
Experience Mapping
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
Experience Blueprint
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video series.
Empowering Our Bankers
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
The Opportunity Of Addressable EngagementRegions’ Transformation How We Are Getting There
Organization and ApproachEnablementCreating the Customer Experience
Lessons Learned Along The Way
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.Agenda
Lessons
Transformation takes time – phase your approach
Incorporate short-term wins in each phase to show value
Technology may be the easiest part
Process, skill sets, operating model, and organization may be
the hardest
Involve your channel partners early and often – integration is
imperative
Be firm in your vision but willing to adapt your plan
1
2
3
4
5
6
Watch this presentation in Merkle’s Performance Marketing for Financial Services
video series.
Watch this presentation in Merkle’s Performance Marketing for Financial Services video series
Get up to speed on how the industry's top-performing financial services brands are using addressable audience platforms to see great results with Real World Success with Performance Marketing. There are five presentations, each taking an in-depth look at how one brand celebrated huge wins:
• Video 1: Disruptive Marketing Trends in Financial Services
• Video 2: Transforming to Compete in the Age of the “Always Addressable Customer”—From vision to reality
• Video 3: Go Your Own Way: The many paths to addressable marketing
• Video 4: Turning Execution into Impact• Video 5: Institutionalizing the Addressable
Advantage
The opinions expressed in the presentation are statements of the speaker’s opinion, are intended only for informational purposes, and are not formal opinions of, nor binding on Regions Bank, its parent
company, Regions Financial Corporation and their subsidiaries, and any representation to the contrary is expressly disclaimed.