In this case study, read how Mike worked with a global bank to redefine and optimise cross-sell for the UK bank. Mike advised on the CVM operating model, team structure, segmentation and targeting, and worked with the customer marketing team to outline a new cross-sell programme incorporating these improvements, worth £47m in revenue to the bank.
Context:
Traditional banks are having a tough time. New entrants to the market and an increase in attractive acquisition offers make it increasingly difficult to retain customers, who value long-term relationships with banks less and less with each passing year.
This global bank was no different but was also facing internal challenges. The bank had traditionally underinvested in retention and engagement, so the CVG was brought in to help guide the team’s first steps. To complicate matters further, the organisation itself is enormous and very siloed, leading to conflicting priorities amongst stakeholders, long lead-times for campaigns and inefficiency in process.
Challenge:
To redefine how customer behaviour is understood and influenced to create more effective approaches to customer management that increase LTV, working collaboratively to do so.
The work:
The CVG worked with over 20 stakeholders over a period of two years to deliver the following work:
CVG Audit™ - Mike audited the bank’s customer marketing operation:
- · Effectiveness Audit – Mike assessed the bank’s customer marketing operation across the key criteria that drive effectiveness – planning, execution and regulation
- · Efficiency Audit – Mike assessed the bank’s customer marketing operation across the key criteria that drive efficiency – Enablers and Manageability
Ways of Working – Mike led a cross-functional team designed to encourage agile solutions to drive up LTV.
- Organisation and management of the team – Mike worked with key senior leaders to identify the right people to join the team, coordinating the sessions, setting the agenda and challenging participants to think big
- Definition of new processes – Mike defined new processes to streamline time-to-market for customer marketing activity, designed to reduce redundancy and improve efficiency
Valuing Customer Behaviour -Mike worked with the data and engagement teams to re-evaluate internal scoring methods and re-implement them in a key cross-sell programme.
- Interviews – Mike led a series of stakeholder interviews to determine how data was being used in the business and what stakeholders thought needed to change
- Challenging with different approaches – Mike worked closely with the data team to review their existing approach to customer engagement scoring and challenged the team with alternative approaches consistent with their customer’s behaviour
Customer Engagement Operating Model: Mike advised on how the bank could optimise its customer engagement activity to drive increased revenue:
- Lifecycle definition: advised on the correct way to build out the customer lifecycle and suggested key programmes to implement based on the previous work valuing customer behaviour
- Team structure: advised on how the team could be restructured to optimise strategy and delivery
Cross-Sell Strategy Definition: Mike defined the new approach to cross-sell for the bank’s existing customers.
- Business case – defined the business case in terms of low, medium and high return across a variety of scenarios, including quicker economic recovery post-Covid
- Contact Strategy – Built out the multi-channel, multi-phase contact strategy, fully trigger based and automated. This strategy was designed to engage customers across multiple communication channels (multi-channel) and different stages of the customer journey (multi-phase). To ensure efficiency and relevance, the contact strategy was fully trigger-based and automated. This meant that customers received personalized offers and communications based on specific triggers, such as their behavior, interactions, or life events.
- Segmentation – Mike recognized the need to redefine the customer segmentation approach for cross-selling. Instead of using traditional segmentation methods, he introduced more sophisticated odelling techniques. These advanced models allowed the bank to group customers based on various factors, such as demographics, behavior, spending patterns, and product preferences. This resulted in more targeted and personalized cross-sell opportunities.
- Contact Rules – As part of the new approach, Mike established clear contact rules for customer interactions. These contact rules defined the frequency, timing, and content of cross-sell communications. By setting such rules, the bank ensured that customers were not overwhelmed with offers and that the communications remained relevant and non-intrusive.
- Content Approach – Additionally, the content approach for cross-sell communications was revamped. Mike and the team focused on creating compelling and tailored content for each customer segment. The content was designed to address the specific needs and pain points of the customers, making the offers more appealing and increasing the likelihood of conversion.
Results and KPIs:
- Customer Marketing Audited – Completed
- New ways of working identified and implemented – Completed
- New operating model defined – Completed
- Cross-Sell Strategy defined – Completed