Why Brazil’s largest bank is No. 1 in Latin America
Banco do Brasil responds to customer needs with smart, targeted products and services
Brazil is home to the world's sixth-largest economy – one that's growing 5 percent annually and that's second only to the US in the Western Hemisphere.
Helping to drive these economic achievements is a reinvigorated financial services industry, led by Banco do Brasil -- the No. 1 Latin American bank in assets, and an enthusiastic proponent of SAS® analytics solutions.
Banco do Brasil is tapping SAS technology to move beyond first impressions and more toward true customer intelligence. That means sifting through terabytes of data to segment, profile and understand each customer's attributes and behaviors. Armed with those insights, Banco do Brasil is forging stronger relationships with happier customers, reducing costs and increasing profitability.
In 2009, Banco do Brasil adopted a new strategic focus to transform its retail banking operations with new programs, initiatives, processes, channels and models. The ultimate goal: clarify and strengthen relationships with each of its 55 million customers.
According to Luis Lessa, Executive Manager, previously manual processes for engaging with retail customers meant that branch managers were responsible for creating bundled products and services and devising up-selling and cross-selling strategies. These time-intensive efforts created wide variability in customer satisfaction and financial results for the bank.
“We needed to move beyond basic hunches and intuition,” he said. “We wanted fact-based campaigns based on data and analytic insights into our customers. And we needed to identify these correlations and propensities very quickly. That’s why we chose SAS for our customer service platform.”
Which product should a Banco do Brasil employee offer to a specific customer? Which information is essential to identifying the customer and his profile? SAS helped uncover the answers to these and other strategic questions and – through integration with customer relationship management (CRM) tools – present the best offer to the customer.
SAS groups customers into segments and behavior patterns and identifies the common characteristics that point to future likely purchases. The solution factors in preferences, speed of purchase, customer satisfaction, profitability and more. The result? As much as 20 percent of all cross-sell/up-sell offers proactively presented to customers through this system results in a sale.
"SAS analyzes each customer and automatically presents the optimal assortment of products and services that are most likely to meet the customer's needs," said Jorge Luiz Henrique, CRM Architecture Manager for Banco do Brasil. "That information appears right on the branch manager's screen so he can immediately serve the customer. Our new platform is much faster, much easier and much more accurate."
Overwhelming data volumes
From there, Banco do Brasil broadened its use of analytics at its 5,000 branches throughout Brazil, tying in analytics to its sales automation and service tool to transform every customer-service encounter into a business opportunity. But with so many customer accounts, the data volumes were a tremendous challenge.
"We have structured and unstructured data on tens of millions of accounts," said Lessa, "and we needed a way to transform this data into actionable information and business opportunity. SAS was clearly the solution for us to make that happen."
After five months of model development and testing, Banco do Brasil piloted the integrated SAS Customer Intelligence solution at several branch locations in Rio de Janeiro, which validated the workflows and gauged customer satisfaction.
"We wanted to understand if the product offerings we presented to different customer segments were meeting customer needs," explained Henrique. "We even called a few customers afterward to see if their reactions were positive – and all of them were happy with our performance."
As the analytic platform spreads throughout Banco do Brasil, the company now believes it is in a far better position to take fuller advantage of opportunities that arise when customers visit bank branches and that service will be faster and more relevant to the customer.
"Our branches can now deliver a higher level of service to our customers," said Lessa. "Our relationship with SAS is very important to our bank. As Brazil continues to evolve and grow, we are now ready to take full advantage of our economic opportunity."
Who else uses analytics to know customers?
- Expedia understands customer lifetime value through relevant offers, resulting in increased conversions.
- Globe Telecom's strong customer focus has led to impressive results: more than $42 million in revenues by micro-segmenting marketing campaigns.
- Lotte.com uses SAS for Customer Experience Analytics to identify the causes of online shopping-cart abandonment, resulting in a first-year sales increase of $10 million.
- DBS Bank reviewed the credit application process and identified where the process could be optimized.