Customer Acquisition and Personalization for Retail Banking Adobe & Accenture Joint Initiative
Retail banking Traditional retail banks are losing technologically sophisticated consumers to new business models and financialtechnology start-ups. These disruptive competitors attract new clients with focused, innovative services, sign them up digitally, and retain them with personalized interactions and targeted product portfolios. Retail banks that fail to make the digital investments required to attract and retain these consumers resign themselves to gradual erosion of their market position towards commodity status, with me-too products that compete merely on price. The Adobe and Accenture Joint Initiative is uniquely positioned to help retail banks harness the power of digital to grow their client base, differentiate from competitors, personalize the banking experience, extend customer relationships, and drive incremental revenue streams. Competing for customers Financial executives highest priority is client base growth. 1 With over 32% of US adults preferring internet banking over the branch, according to the American Bankers Association, retail banks need to rethink their traditional distribution and marketing models that are deeply rooted in the branch network. Banks need to digitize their own marketing, sales, and onboarding processes to meet the expectation of the new digital customer. In an effort to engage customers, retail banks have traditionally utilized generic audience segmentation. With the sophistication of today s technology, retail banks can leverage digital technology to sort through their customer data, find attributes and create predictive models to create targeted and personalized marketing campaigns. Segmenting beyond demographics Demand for retail banking services is driven by life events. 2 Banks have long used generic audience segmentation - information on shared demographic, geographic or behavioral characteristics - to create target marketing lists. Today, banks can engage in more effective segmentation and audience selection to improve simplicity, transparency, and speed of interactions while still respecting regulatory limits: Dynamic microsegmentation of consumers based on attributes, needs, and behaviors contributes to substantial increases in conversion 3 A behavioral approach utlilizes lessregulated data sources to identify new products, revenue sources, and serve customers Behavior can also identify prospects where they live and target them with relevant recommendations based on their research habits. Digital consumers who don t fit the old demographic categories can be well served by banking products that fit their digital lifestyles and behavioral segmentation is a powerful way to reach them. 2
Acquisition and onboarding Digital consumers choose brands that are easy to work with, appear to understand them, and offer relevant choices at key inflection points along their digital journeys. Banking consumers journeys often include life events that trigger the need for checking, savings, credit-card, or retirement accounts; or auto, home, or personal loans. To capture these consumers, banks need: Synchronized outreach and lead management across both digital and traditional physical channels Precise analysis, segmentation and targeting of new, not-yet-authenticated traffic to bank and third-party websites, in mobile app interactions, and in social media communications Delivery of personalized experiences and offers across devices, channels, and locations to attract, engage, and retain customers and displace competitors Effortless in-branch, call-center, mobile, and online onboarding processes to facilitate conversion and new account opens. 4 To compete with emerging digital competitors, banks should enhance their digital processes for marketing, sales, and onboarding and differentiate them with personal services. What it will take To capitalize on digital opportunities, banks need to invest in platforms that connect databases to support customer-centered interactions across lines of business. The Adobe and Accenture Joint Initiative helps retail banks target, reach, acquire, and onboard new clients with solutions like these: Customer Acquisition An acquisition solution that uses consumer behavior and preference profiles, within regulatory boundaries, to create crosschannel experiences with real-time messages and offers, to transform high quality prospects into sales. Customer Activation Intuitive, personalized web and mobile onboarding, to maximize account opening success, customer engagement through the first 90 days, and conversion of tailored offers and bundles that exceed customer expectations and differentiate the brand. 3
Personalizing the banking experience Digital is transforming the ways consumers interact with businesses in every industry. Led by pioneers like Google and Amazon, personalization is now de rigueur across technology industries. Even industries built on face-to-face interactions, like Hospitality and Retail, leverage digital capabilities support to accelerate and smooth service delivery. The challenge for retail banking is to meet their customers expectations for engaging experiences, while respecting the limits that customers and regulators impose on their use of data. Creating end-to-end experiences Accenture research shows that customers want their banks to recommend products and services that match their financial requirements. 5 Banks can accomplish this without taking on unnecessary risk by building service partner networks, then using analytics and behavioral segmentation to connect customers to the appropriate partners. This approach integrates banks into their customers digital ecosystems, helping to position them as: Access facilitators, helping customers discover products and services relevant to them 6 Value aggregators, consolidating and delivering benefits such as merchantfunded rewards and discounts on their customers everyday purchases 7 Advice providers, applying insights into customer spending patterns to help them manage their money and life milestones 8 To increase share of wallet and counteract the impact of switching, banks should refocus from reducing the cost of interactions to enhancing their value and giving their customers a connected string of positive interactions. These include transactions, information and advice, and loyalty programs with flexible earning and redemption options even in small increments for things like bill payments. Building retention, loyalty, and lifetime value Every customer-service interaction at a retail bank carries risk as well as opportunity. Consumers turn to digital alternatives when their bank offers are indifferent, offers only generic services, or needlessly complicates transactions. But full-service banks can convert rewarding service interactions into cross-sell and upsell opportunities an option not available to single-product competitors. To retain customers, gain their loyalty, and enhance their value, banks should move from their transaction orientation up the relationship value-chain, mobilizing their data to do more with the same resources: Digitally support and connect every interaction digital, physical, or inperson and unite them all in a single view of the customer Accommodate customers choices of time, place, device, and channel and pick up seamlessly when they pause, move, or switch Personalize product portfolios and bundles to accommodate consumer niche preferences in ways competitors can t match Reengage customers as their needs change and grow, with personalized recommendations and a portfolio of services that grows with them Expand banking rewards programs, working with ecosystem partners to offer clients experiences beyond the traditional scope of banking services What it will take Effective personalization across the customer journey requires a step up in retail banks marketing effectiveness. Banks are responding to the digital transformation of financial services by moving towards networked, national or even international business models. Their own transformations can be accelerated by: Identifying potential new customers during the earliest, unauthenticated, stages of online or mobile customer journeys Increasing the impact of their content and other resources as they work to address both new digital and traditional marketing requirements Integrating data access across business units and first-, second-, and third-party sources, in ways that won t compromise the integrity of personal customer information 4
The Adobe and Accenture Joint Initiative helps retail banks build experiences that can satisfy and retain clients with possible solutions that include: Interactive Banking A digital banking experience that spans all customer touchpoints, delivering personalized content based on past and current interactions to improve relevance of cross-sell and upsell offers, share of wallet, loyalty, and customer lifetime value emortgages A streamlined digital mortgage process that reduces offline processing and accelerates turn-around Digital Wallet A consumer solution supporting electronic commerce and person-to-person transactions 5
Competing on compliance Banks have expertise in complying with regulations that new entrants either lack completely or have not yet institutionalized. As these competitors grow and draw regulatory attention, traditional banks can use compliance as a competitive advantage. Consumer protection and lending laws imposed after the financial crisis constrain marketing uses of customer information, but that does not mean that banks must back away from their investments in analytics, segmentation, targeting, and campaigns. Marketing workflows with built-in compliance touchpoints, and Data-Management Platforms (DMP) structures built to assist with compliant data sharing, are just two of the ways banks can use their legacy strengths to compete against market insurgents. 9 What it will take The Adobe and Accenture Joint Initiative helps retail banks monitor and govern their digital marketing programs while addressing their obligations to client privacy and security, with: Distributed Marketing Campaign Platform A digital technology platform and marketing solution to manage campaigns, integrate data, and simplify corporate governance. Digital Marketing ROI Dashboard An executive dashboard presenting strategic, tactical and content views to measure and track marketing program effectiveness and efficiency across business units and product sites. 6
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The Adobe and Accenture Joint Initiative The Adobe and Accenture Joint Initiative was designed to help companies escape exactly the kind of impasse the banking industry finds itself in today. The Joint Initiative expands the decades-long global alliance between Adobe and Accenture, and helps clients in four key industries 10 achieve new levels of digital marketing performance. These solutions apply advanced technologies and industry leading practices that can help Banking clients simultaneously to achieve their digital marketing goals, and overcome the IT challenges that have blocked their progress in the past. Combining Accenture s unparalleled industry, strategy, and digital experience with Adobe s leading-edge Marketing Cloud solutions, the Joint Initiative helps marketers at retail banks: Accelerate new offerings to market while reducing delivery risk, using proven capabilities and advanced solutions built for the digital era Digitally transform their organizations to overcome different industries demands, challenges, and constraints Achieve new levels of growth by deploying advanced marketing solutions and the experience to use them effectively Overcome emerging competitive challenges by combining strategic insights, deep digital experience, and advanced marketing solutions Overcome enterprise fragmentation and inefficiency by supporting customercentric interactions that integrate marketing, sales, and service Solutions With its tight focus on industry-specific solutions, the Adobe and Accenture Joint Initiative offers Banking clients solutions like these: Customer Acquisition An acquisition solution that uses consumer behavior and preference profiles (within regulatory boundaries) to create crosschannel experiences with real-time messages and offers, to transform high quality prospects into sales Customer Activation Intuitive, personalized web and mobile onboarding, to maximize account opening success, customer engagement through the first 90 days, and conversion of tailored offers and bundles that exceed customer expectations and differentiate the brand Interactive Banking A digital banking experience that spans all customer touchpoints, delivering personalized content based on past and current interactions to improve relevance of cross-sell and upsell offers, share of wallet, loyalty, and customer lifetime value emortgages A streamlined digital mortgage process that reduces offline processing and accelerates turn-around Digital Wallet A consumer solution supporting electronic commerce and person-to-person transactions Distributed Marketing Campaign Platform A digital technology platform and marketing solution to manage campaigns, integrate data, and simplify corporate governance Digital Marketing ROI Dashboard An executive dashboard presenting strategic, tactical and content views to measure and track marketing program effectiveness and efficiency across business units and product sites. 8
Why select the Adobe and Accenture Joint Initiative? The Joint Initiative can help retail banks achieve greater marketing performance and efficiency, with faster returns from their digital marketing investments, by linking two industry-leading competencies: the digital marketing solutions of Adobe Marketing Cloud and the people, processes, and industry-specific digital marketing services of Accenture. Under the Joint Initiative, Accenture and Adobe adapt, develop, and integrate digital marketing solutions that address the requirements of key industries, with: Industry-standard performance metrics Pre-integrations with industry-typical solutions for rapid implementation and seamless scalability Partnerships with companies offering complementary technologies Configurations and services designed for compliance with industry-specific regulations and standards 9
About Accenture Interactive Accenture Interactive, part of Accenture Digital, helps the world s leading brands drive superior marketing performance across the full multichannel customer experience. Accenture Interactive offers integrated, industrialized and industrydriven digital transformation and marketing solutions. To learn more follow us @AccentureSocial and visit www.accenture.com/interactive. About Adobe Adobe is changing the world through digital experiences. Our creative, marketing and document solutions empower everyone from emerging artists to global brands to bring digital creations to life and deliver them to the right person at the right moment for the best results. About Adobe Marketing Cloud Adobe Marketing Cloud empowers companies to use big data to effectively reach and engage customers and prospects with highly personalized marketing content across devices and digital touch points. Eight tightly integrated Solutions offer marketers a complete set of marketing technologies that focus on analytics, web and app experience management, testing and targeting, advertising, audience management, video, social engagement and campaign orchestration. The tie-in with Adobe Creative Cloud makes it easy to quickly activate creative assets across all marketing channels. Thousands of brands worldwide including two thirds of Fortune 50 companies rely on Adobe Marketing Cloud. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions underpinned by the world s largest delivery network Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com. References 1 Digital Trends in the Financial Services and Insurance Sector. (London: econsultancy in association with Adobe, February 2016). Registration and download link. 2 Christine Duque, Yoann Michaux, and Marco Magnini. Marketing, Moments, Obsession and Outcomes (The Agile Bank Series). (Dublin: Accenture, 2016). 3 Ambrogio Terrizzano, Silvia Pesaresi, and Monica Del Naja. Banking 2016: Accelerating growth and optimizing costs in distribution and marketing (Dublin: Accenture, 2012). 4 Christine Duque and Marco Magnini. DNA, Diagnosis, Shoes and Sweet Spots (The Agile Bank Series). (Dublin: Accenture, 2016). 5 North America Consumer Digital Banking Survey 2015. (Dublin: Accenture, 2016). 6 The Everyday Bank. (Dublin: Accenture, 2015). 7 Ibid. 8 Ibid. 9 Christine Duque, Yoann Michaux, and Marco Magnini. Marketing, Moments, Obsession and Outcomes, op. cit. (The Agile Bank Series). (Dublin: Accenture, 2016). 10 Life Sciences, Healthcare, Banking, and Insurance. Copyright 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 16-2060