Hua Nan Financial Holding Company increases cross-selling power with SAS®
Hua Nan Financial Holding Company is the leader in Taiwan for current deposits, holding 52 percent of all accounts. With total assets of TWD1.6 trillion (US$48 billion) and six million current deposit accounts it was the first in the industry to obtain a financial holding license. As an established bank in operation for almost 90 years it enjoys an excellent reputation for its innovative products.
Utilizing Business Analytics and Marketing Automation solutions across its business units, Hua Nan Financial ensures that everyone across the enterprise can analyze customer information from its current deposit accounts. As a result, more cross-selling opportunities are being recognized, leading to greater operating revenues even in today's economic climate.
"These systems are also important tools for increasing business success," said Liu Mao-Shien, Executive Vice President of Hua Nan Financial. "We have mastered the ability to properly use the data we obtain. This has generated valuable cross-selling results for Hua Nan Financial's product sales programs."
Understanding its customers behavior
Since 2005, Hua Nan Financial has been investing in advanced Business Analytics and customer management solutions. "Implementation of a customer-centric policy was the initial focus of Hua Nan Financial's CRM system," Liu Mao-Shien said. "We gather customer information which then allows us to introduce timely marketing campaigns that meet customer needs, increase the number of financial products held by customers, and ultimately increase Hua Nan Financial Holding Company's total revenue."
Utilizing SAS solutions Hua Nan Financial has built two important models: a customer segmentation model and a customer purchase trend model. The institution also employs automated marketing project management tools to implement and track the entire marketing program process - from planning and designing campaigns, screening target customer lists and selecting execution channels - to campaign execution, tracking and assessment.
By using this system to record all details of marketing execution, customer intent to purchase and transaction completion rates - and then coordinating with the system to generate results tracking and management reports, Hua Nan Financial can discover problems in a timely manner and quickly adjust its marketing strategy.
First step: successful integration
As a result, teams were encouraged to adopt solutions by giving data and intelligence a supporting role in the expansion of subsidiary business. "Business units of Hua Nan Financial may disregard launching marketing campaigns in times of flourishing markets. But during difficult economic times, customer management solutions are good tools for expanding business," Liu Mao-Shien noted. "We allowed the units to take the initiative in increasing their data needs. Only this approach ensures the diligent use of data."
Recovering 95 percent of inactive cardholders
Hua Nan Financial plans to conduct marketing campaigns that continue to apply cross selling techniques across its banking, securities, property insurance and investment trust business units. Marketing campaign numbers have increased 213 percent compared to the previous year, and service fees generated this year are expected to exceed TWD 700 million (US$20.9 million).
In addition, Hua Nan Financial is also building an e-portal that allows customers to access all products and services provided by the financial group through a single login and Web interface. To achieve their goal of providing more convenient access for customers, Hua Nan Financial is actively integrating its back-office data resources.
"For financial holding companies, joint marketing and cross-selling of products across subsidiaries are always important policies," said Liu Mao-Shien. "At present, we have six million current account holders, and many of them only use products from a single subsidiary. So, there is still a lot of room for cross-selling growth."
Leveraging SAS® technology and expertise
"We hope in the future to be able to fully realize the benefits of SAS Business Analytics and customer management solutions through a strategy of continuous revision," said Liu Mao-Shien.
Using SAS has brought substantial business benefits to Hua Nan Financial. The organization can: better target customer needs by providing the right financial products; increase cross selling and up selling of products across the financial group; and enable all business units to rely on the resources of this internal marketing channel, which reduces sales costs, generates greater profits and creates better customer relationships.
The results illustrated in this article are specific to the particular situations, business models, data input, and computing environments described herein. Each SAS customer’s experience is unique based on business and technical variables and all statements must be considered non-typical. Actual savings, results, and performance characteristics will vary depending on individual customer configurations and conditions. SAS does not guarantee or represent that every customer will achieve similar results. The only warranties for SAS products and services are those that are set forth in the express warranty statements in the written agreement for such products and services. Nothing herein should be construed as constituting an additional warranty. Customers have shared their successes with SAS as part of an agreed-upon contractual exchange or project success summarization following a successful implementation of SAS software. Brand and product names are trademarks of their respective companies.
Copyright © SAS Institute Inc. All Rights Reserved.
Executive Vice President
Hua Nan Financial Holding Company
Harness the cross-selling power of each Hua Nan Financial business unit to increase the number of products per customer and raise overall revenue for the financial group.
With SAS® BI Server, SAS® Marketing Automation, and the SAS® Business Analytics Framework, the institution can now effectively allocate marketing resources, automate tracking and management reports, predict customer needs to provide diversified products and services and allow customer purchases through its ePortal.
With SAS, Hua Nan Financial Holding Company successfully recovered 95 percent of its inactive cardholders and expects service fee contributions to exceed TWD700 million (US$21 million) within the first year.
“The marketing management system built using SAS allows Hua Nan Financial to formulate standardized and centralized marketing operation models. This has helped reduce marketing costs, anticipate customer needs in a timely manner and provide diversified merchandise and services.”
Executive Vice President of Hua Nan Financial