Customer Insights Manager at PTSB
SAS® Analytics help permanent tsb Bank understand customers and target campaigns
Leading Irish retail bank permanent tsb uses SAS® Marketing Automation to deliver a more customer-focused analytics-driven approach to campaigns, collections and credit in a changed world of banking.
The introduction of analytics had a profound effect on how Irish banks conduct business. As many struggle with the requirements of the European Union and International Monetary Fund to restructure and be part of the government's programme of economic recovery and job creation, analytics is enabling a far more scientific approach in key areas including customer insight, marketing, risk and fraud.
Part of the permanent tsb Group, permanent tsb Bank (PTSB) is an acknowledged leader in the use of analytics. "The world has changed so much it's hard to compare now with the way things were before," said Martin Brennan, Customer Insights Manager at PTSB. "Before we had these sophisticated data extraction tools, most of our marketing was product driven. We'd develop a new product based on our knowledge of the market and then market it broadly to our customer base. We have now shifted completely to a customer-focused approach. We actively consider who the customer is, what their needs are and the product that fits, when they want it, and then aim to sell the right product to the right customer at the right time. This is all possible because of analytics."
Before analytics, it took months or even years to build a new product, and by the time we had it ready, the market had moved on, so we were already out of date. Using SAS for data extraction, we can now build campaigns in a shorter time frame of weeks rather than months. The new tools also have the advantage of freeing up expensive management time on decisions which are now automated.
Understanding customers - and targeting campaigns
The bank is using SAS® Marketing Automation with SAS® Enterprise Guide® for data extraction and exploration, SAS® Enterprise Miner for data mining and development of customer profile/ needs, and Campaign Management capabilities to automate marketing campaigns. Martin Brennan explains how analytics benefits customers: "For example, our Bill Manager product allowed us to define and target a precise segment – people who had trouble scheduling their bill payments across a year – by looking at the need, rather than just the product. Analytics also helps us to validate all of our old business models to inform decisions at a high level.
"Before analytics, it took months or even years to build a new product, and by the time we had it ready, the market had moved on, so we were already out of date. Using SAS for data extraction, we can now build campaigns in a shorter time frame of weeks rather than months. The new tools also have the advantage of freeing up expensive management time on decisions which are now automated."
Other benefits to customers include the ability to view their account transaction type online, enabling them to see where they are spending their money and helping them manage spending. 'Extreme' conditions can also be managed more efficiently: for example, if they lose a card then the money and information can be recovered. Analytics also enables the bank to manage its collections and credit functions more efficiently, helping ensure follow-up calls and other communication opportunities can be used in the most valuable ways.
"Of course, I'm not saying analytics would have prevented the Irish financial collapse in 2008, but it would have provided the tools to enable those who wanted to predict the tidal wave of collapse," Brennan adds. "Analytics can help economists and financial managers avoid or manage the cycle of boom and bust. And in the coming years and months, it will allow us to model the behaviour of customers who have been financially 'cured'."
Deliver a genuine customer focus to improve marketing, enhance service and support banking operations in a difficult market environment.
SAS Marketing Automation with Campaign Management, SAS Enterprise Guide and SAS Enterprise Miner for data extraction, analytics, reporting.
More targeted and so more effective campaigns with personalised offers; new insights for improved customer services; new collections and credit opportunities; freeing-up of expensive management time.