Slovenská sporiteľňa invests in customer relationships with SAS® predictive analytics

Marketers and business owners alike dream of operating in a free market in which their products sell themselves effortlessly. But in today's competitive markets, visions of rapid success can quickly turn into nightmares.

In Slovakia – and across the world – markets have grown saturated and mature. Direct-mail campaigns that segment clients based on a handful of variables lack the impact they once had. Consumers toss aside the overwhelming volume of generic offers they receive daily. And in increasing numbers, many opt out of receiving offers that are irrelevant to their specific preferences and needs.

A sophisticated approach
To be heard above the chatter of a noisy market, banks such as Slovenská sporiteľňa rely on smarter, more sophisticated methods to reach customers.

Using SAS for predictive analytics, Slovenská sporiteľňa rises above the din of its competitors, examining client information to predict an individual's future behavior. Such insight helps the bank make wise decisions quickly about which products to offer a particular individual.

As a result, marketing campaigns are more effective and efficient. The bond between bank and customer grows stronger, which fosters loyalty. A loyal customer base creates better cross-sell/up-sell opportunities. And for every happy, profitable customer Slovenská sporiteľňa does not have to replace, the bank avoids marketing expenses required to find a replacement.

"Our bank has the largest number of customers in Slovakia," says Pavol Čelko, Head of Management of Target Groups, "and we therefore do not want to gamble with their satisfaction and loyalty by sending offerings which fail to conform to their personal needs and circumstances."

So much data, so little knowledge
As a leader in the Slovak banking market, Slovenská sporiteľňa has acquired  huge amounts of data. Before implementing SAS, the bank had no quick and easy way to obtain relevant information from it – information that, for example, could help it choose the right audience for a marketing campaign or predict behavior among a certain client group.

Slovenská sporiteľňa understands the profound value of knowing each and every one of its customers. So it turned to SAS for help. With SAS, the bank can analyze customer behavior, predict future behavior and offer clients products that best meet their needs.

"We are looking for suitable products for our customers, not customers for our products," Čelko explains.

Fast, easy modeling
To maximize the analytical benefits of data mining in the most effective, efficient way possible, Slovenská sporiteľňa, in cooperation with SAS, built a data mart in which it stores thousands of attributes about each individual client.

The  data mart significantly speeds preparation of individual campaigns. "While before we had to prepare data for a campaign two weeks in advance, now it takes only a few hours," says Čelko.

Using its data mart hand-in-hand with SAS, the bank builds reliable models in a week or two that support efforts to cross-sell/up-sell the right products – like consumer loans, credit cards and mortgages – to the right customers.

Analyzing the information mined from the data mart allows the bank to spot behaviors or trends common among customers on the verge of moving to a different bank. So-called "retention models" provide the basis on which the bank can decide when (and when not) to intervene to retain a customer.

Better information, better decisions
By creating its own models in-house, Slovenská sporiteľňa no longer must rely on external consultants. "As the number of models might be counted in tens, and one customized model from an external consultant may cost thousands of euros, the financial benefit will show – especially in the long run," Čelko says. "In the past, it would have cost us much more money to achieve the same campaign results we get today with SAS."

And the benefits extend beyond the direct cost savings.

"The bank's strategy is to meet the needs of our clients and increase their loyalty so that they do not have a reason to switch banks," Čelko says. "SAS allows us to offer our customers choices that better meet their needs."

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.

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