Kitsap Bank Active Analytics Success Story: FIS Pinpoint Marketing

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1 Kitsap Bank Active Analytics Success Story: FIS Pinpoint Marketing

2 Kitsap Bank, a $950-million, 20-branch community bank in Port Orchard, Wash., has been serving consumers and businesses in the greater Puget Sound area of Western Washington since In recent years, the bank s marketing team has modernized their brand, updating their website and in-branch marketing materials and embracing social media to convey their dedication to community involvement and sustainable, green banking. As the brand upgrade progressed, the marketing team tackled the goal of refreshing their online banking site, which was used by just 16 percent of retail and 18 percent of business banking customers. To encourage greater engagement of the digital channel, targeted banner ads were created to draw attention to special offers related to consumer and business loans and lines of credit that were previously promoted through static banner ads, print ads and printed collateral. In addition, the bank needed a more effective way to measure how many people saw and were influenced by their online ads. Kitsap Bank partnered with FIS to offer their solution, FIS Pinpoint Marketing. Once installed and campaigns promoting business borrowing, first mortgages and consumer lines of credit were piloted, the institution began realizing deeper insights into the behaviors of their customer base. In conjunction with its other marketing efforts, Kitsap Bank has been able to leverage FIS Pinpoint Marketing in a highly efficient manner. Overall, the bank has experienced a substantial 6.52 times return on their FIS Pinpoint Marketing investment with marketing campaigns targeting business borrowing, first mortgages and home equity lines. Business Banking Campaign Mortgage Campaign Home Equity Campaign Program Total 4.28 X 8.31 X 9.53 X 6.52 X

3 Pilot Program Overview Kitsap s FIS Pinpoint Marketing program launched targeted message delivery on May 2, For the purposes of the pilot, impressions were tracked through August 31. Product and service openings (conversions) were tracked and continued through December 31, covering the 120-day attribution window after the final pilot impressions were shown. Overall, the solution generated an average impression per influenced product conversion of 744 to 1 (one) across all piloted campaigns, a fraction of the impressions needed to drive a cross-sell conversion from typical marketing systems. Across the pilot campaigns, FIS Pinpoint Marketing influenced 28 percent of new product conversions while engaging only 11 percent of the total population. May 2 Jun 1 Jul 1 Aug 1 Aug 31 Oct 1 Nov 1 Dec 1 Dec 31 Impressions Served Impressions Served Influenced Conversions Shedding Light on Customer Behavior The Kitsap Bank team was intrigued when they saw a demonstration of FIS Pinpoint Marketing. This analytics-based marketing program anonymously aggregates unique customer transaction data product types, activities, spending patterns, life events and other behavioral data. This aggregation facilitates the formation of key lifestyle indicators (KLI s) that are used to create a 360-degree view of each customer. These KLIs are the basis for triggering real-time targeted media buys and delivery of contextual offers as part of a predefined campaign across both assisted and unassisted banking channels. Because the behaviors and lifestyles of banking customers are continuously changing, FIS Pinpoint Marketing allows consumers and businesses to automatically move in and out of KLI groups in real time, without manual intervention. The solution also leverages event triggers to serve up unique offers across various banking channels (online, mobile, branch and other assisted channels). The decision was made to install the solution and, in less than 60 days, Kitsap Bank officials were able to draw unique insights from within their customer base and make those insights actionable. Based on those insights, the bank was able to identify customers and present them with relevant ads that support their key business initiatives. Within 240 days, the results described below began to emerge. Business Borrowing: A Kitsap Bank Priority The bank identified business borrowing as a key product portfolio to promote in a pilot. Based on the key lifestyle indicators applied, the group of customers predisposed to applying for a small business or commercial loan was small just 3 percent of the overall customer base, or 2,857 customers. Tracking efforts throughout the campaign revealed that targeted customers who applied for loans did so, on average, within 54 days of the campaign s first impression. By the end of the pilot, 33 percent of clients with new business loans closed had been presented with the targeted ads.

4 Although the targeted group was small, the results of the pilot were significant, with one loan opened for every 151 customers in the KLI target audience an incredibly efficient ratio: BUSINESS LOAN CONVERSIONS CONVERSION RATE Targeted Customers Non-targeted Customers 151:1 2,756:1 Mortgages: Growing the Portfolio By again applying the key lifestyle indicators to the bank s total customer base, 11 percent were identified as online banking users that were good prospects for home mortgages. As impressions were made, customers who closed on their mortgages did so, on average, within approximately 90 days. As the pilot came to a close, 21 percent of all new mortgages closed were presented the targeted ads by FIS Pinpoint Marketing very compelling results compared to the performance of typical marketing campaigns within the banking sector. When comparing customers targeted by FIS Pinpoint Marketing with those not targeted, the conversion efficiency is again significant: MORTGAGE CONVERSIONS CONVERSION RATE Targeted Customers Non-targeted Customers 817:1 1,606:1

5 Home Equity Loans: Renovators, Decorators and Gardeners One of the most revealing insights to come out of the dynamic data was the fact that 16 percent of the Kitsap customer base fit the profile of home improvers, according to the unique, real-time KLIs. Spring was approaching, a time when the sun finally reappears in the Northwestern sky and the bank typically markets home equity loans. With more than 12,300 customers in home-focused KLI groups, FIS Pinpoint Marketing was able to identify within minutes home improvers, decorators and gardeners that regularly use the bank s online banking service but do not have a Kitsap home equity loan. When the key lifestyle indicators were applied to the bank s total customer base, 8 percent fell into the category of online banking users with characteristics predisposing them to opening a home equity loan or line of credit. Tracking efforts throughout the campaign revealed that targeted customers who opened home equity loans did so, on average, within 60 days of the campaign s first impression. By the conclusion of the 240-day pilot, 19 percent of all new home equity loans closed were presented with the targeted ads by FIS Pinpoint Marketing. Again, a deeper look at the effectiveness of FIS Pinpoint Marketing s targeting revealed compelling results and highly efficient targeting: HOME EQUITY LOAN CONVERSIONS CONVERSION RATE Targeted Customers Non-targeted Customers 232:1 2,445:1 Even though we were targeting just 11 percent of our overall customer base, the results have been interesting to us, said Anthony George, Kitsap s president and chief operating officer. FIS Pinpoint Marketing presents a window into our data that has not previously existed. This provides a greater understanding of our customers habits, interests and financial priorities, allowing us to generate more relevant offers to them. In the future, Kitsap is considering not only driving highly efficient cross-sell of profitable banking products but also leveraging the system to drive new customer acquisition and greater engagement and forge deeper, more profitable and lasting relationships with its existing customers. In addition, by making the online banking website more engaging, the bank is finding that the use of e-statements, mobile banking and other efficiencies is on the rise, said George. We expect this to ultimately translate into cost savings and greater customer retention.

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