CRM in consumer banking4761

Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,CRM in consumer banking,Dr.Yanning Zhang,CRM Overview,Bank CRM features,Analytic CRM Process,OLAP,Modeling and Data Mining,Decision strategies,Conclusion,Outline,CRM(Customer Relationship Management)is all about unified view of each customer,CRM Overview,Products,Channel,Treatments,Customer,CRM Market is still fast growing,even when overall market is slowing down.Projected CRM market will be over$10 Billion in 2003,from$3.3 Billion only in 1999.(E-commence),CRM Overview,CRM concept is not a new one,but it became a hot topic in last 5 years,Accelerated consolidation in banking industry,Recent major mergers expanded customer base,More products available to consumers,Technology allows easier collection and access of customer data,China market from ERP to CRM,CRM Overview,CRM Overview,Bank CRM features,Analytic CRM Process,OLAP,Modeling and Data Mining,Decision strategies,Conclusion,Outline,Bank CRM Characteristics,Banking is extensive,Almost every family has a bank account,Bank data is data intensive,Bank data is sensitive and proprietary,Bank data is multi-dimensional,Bank industry is highly regulated,Personalized technologies can tailor message to individual customer,Collect data as much as possible from various channels,CRM Starting point-unified customer view,Bank,Telephone,Banking,ATM/Kiosk,Personal,Banker,Online,Banking,In-branch,Teller,Bank Customer Life Cycle,Acquisition,Activation,Relationship Management,Target,Customer,New,Customer,Initial,Customer,High Potential,High Value,Low Value,Involuntary,Charge off,Voluntary,Payoff,Prospect,Prescreen,Underwriting,Collection/Recovery,Bank Customer Life Cycle,Acquisition,Activation,Relationship Management,Target,Customer,New,Customer,Initial,Customer,High Potential,High Value,Low Value,Involuntary,Charge off,Voluntary,Payoff,Prospect,Prescreen,Underwriting,Collection/Recovery,Bureau data,Demographic data,Census data,Application data,Pricing data,Account activation data,Behavior data,Monitoring bureau data,Collection data,Data Collected and Analyzed Along the Life Cycle,CRM Overview,Bank CRM features,Analytic CRM Process,OLAP,Modeling and Data Mining,Decision strategies,Conclusion,Outline,Two types of CRM,Front-end customer experience Operational CRM,Back-end customer understanding Analytic CRM,Two Types of CRM,Analytic CRM,Operational,CRM,Customer,Analytic CRM-Brain of customer management,Data,Metrics,Analysis,Improve-ment,Characteristics of Analytic CRM,Extensive data capturing,processing and data source linking,In-depth analysis and modeling,Integration with operational CRM system,Analytic CRM process is an iterative process,73%,U.S.companies claim collecting information about individuals,Data collection is only the first step-Important to agree on why to collect,since different part of companies have different motivation of collecting information,Analytic CRM-Data Process,Bank data warehouse-the basic building block,Analytic CRM-Data Process,Billing file,Master file,Transaction file,Application file,Bureau file,Marketing file,DW,Data Integration,Data warehouse is the central place to have 360 degree view of customers,Common mistakes in data warehouse,Lack of long term vision,No communication between departments,Lack of cooperation,only 37%share data with other divisions,No sufficient quality control,Conflict data entry point to create unnecessary conflict,No sufficient documentation for data elements,especially for missing values,Analytic CRM-Analysis,Companies need to agree upon the measurement of success,Bank success measurements:,Campaign response rate,Annualized losses,ROA(Return on Assets),ROE(Return on Equity)or ROI(Return on Investment),Analytic CRM-Metrics,CRM Overview,Bank CRM features,Analytic CRM Process,OLAP,Modeling and Data Mining,Decision strategies,Conclusion,Outline,Key components of CRM analysis,Analytic CRM-In-depth Analysis,Data,Summary,Data,Exploration,Modeling,Data,Mining,Decision,Data Summary is the foundation,In many cases,data summary is 70%of the work,Common issues,Confirm the data quality,Verify missing values,Check variable coding,Continuous variable coding,Missing values,Special values,Discrete variable coding,Avoid mis-intepret numeric values,Blank may have special meaning,Analytic CRM Analysis/Data Summary,Data exploration is can be extensive,in many cases,there are over 1000 variables to explore,OLAP(Online Analytic Processing)is often used in variable exploration,Customer profiling is a must,There are many statistical measures to deal with univariate analysis,Mean(Average),Variance or Standard Deviation,Medium,Kurtosis,Etc.,In many cases,variable transformation is necessary.,Analytic CRM Analysis/,OLAP and Variable Exploration,Common variable shapes,Analytic CRM Analysis/Variable Exploration,Normal,S-Shape,Linear,Exponential,Decreasing,Convex,(increasing),Skewed,normal,Analytic CRM Analysis/Modeling,Concept of modeling mimic the future by pas