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Case Study: Maybank
On The Money
Maybank’s analytical CRM approach drives tenfold improvement in campaign success.
Industry leadership and innovation can take a bank only so far. Commoditized products and aggressive rate competition make it difficult to differentiate offerings. Earning consumer loyalty, therefore, depends on delivering the best customer experience possible.Recognizing this, Malayan Banking Berhad (Maybank) sought a means to enhance the customer experience and offer a superior value proposition. After considering solutions from Oracle, IBM and SAS, the bank chose database and customer relationship management (CRM) software from Teradata. “We were looking for a long-term solution, and we knew Teradata was the best choice to meet our needs,” says Mohd Fadzil Bin Ismail, head of CRM for Maybank.
Now Maybank’s integrated marketing solution provides a single, centralized view of its clientele. It allows marketing personnel to communicate more effectively with consumers, thereby improving customer acquisition, cultivation, retention, loyalty and profitability.
Integrated Marketing Value
Maybank’s analytical CRM initiative, dubbed aCRM, supports analysis, customer communications, event-based marketing (EBM) and traditional marketing campaigns. Data mining and business intelligence (BI) software provide a 360-degree view of customers so analysts can accurately identify revenue opportunities, enhance sales channels, mitigate cost risks, leverage valuable data, and optimize contact management.
Users perform data analysis directly on the marketing data mart that is housed in a Teradata Active Enterprise Data Warehouse. They also handle data profiling, data manipulation, analytics data creation, model building, and scoring and evaluation within the Teradata platform.
“Now we can see where the data is coming from, which delivers a better view of individual customers—how much they spend, which accounts they hold, and which channels they buy from,” says Fadzil. “Thus the behavior pattern can be established, and that enhances our predictive modeling initiative.”
Campaign for Change
With the aCRM solution, marketers can divide consumers into target groups that optimize service and communications by concentrating on products and services relevant to individuals in each segment. The EBM application uses call centers, branch networks and other channels to reach out to individuals through planned campaigns delivered at the most opportune time. EBM also facilitates predictive modeling for product development and customer retention.
- Tenfold improvement in campaign results
- Lead generation time slashed from weeks to hours
- New campaigns launched in days, not weeks
- RM 3 billion ($961 million) in new sales generated
- 164% annualized return on investment (ROI)
Using Aprimo Relationship Manager (formerly Teradata Relationship Manager), team members employ multiple channels, steps and touchpoints to reach individuals—using their preferred channels at the right time—with customer acquisition and retention, cross-selling and up-selling, and channel management campaigns.
“Before aCRM, our campaign communications would be based on product lines or campaign duration,” explains Noazrul Hisham Bin Abd Zawawi, channel readiness national lead for CRM. “Now we are leading with messaging on relevant choices customers should make, which lets us offer good advice and help our clients.”
More information and higher-quality leads are motivating follow-up as well. “The number of customers contacted by the branch employees has risen by more than 70 percent,” says Mohd Khair Bin Abu Bakar, head national lead for CRM. “Now nearly 90 percent of branches actually request lead-generation support—up from only 50 percent a few years ago. Our branches recognize the value of the leads they are getting from the aCRM system.
“The branches like getting information about their performance in terms of leads generated, customer contacts and resulting sales,” Khair adds. “It helps them to translate their efforts into value to the bank, which is always rewarding.”
Bang for the Buck
Maybank is realizing dramatic benefits from its aCRM initiative. Marketing campaigns are now 10 times more successful. Lead generation times shrank from weeks to hours. New campaigns that previously took weeks to come to market are now complete in only a few days. The average campaign conversion rate jumped from a low of 0.3% to an average of 8% and a high of 30%.
In addition to increasing customer satisfaction, these successes created significant bottom-line value. Maybank gained RM 3 billion ($961 million) in new sales from the project’s start in August 2007 until late 2009. In its first two years, the aCRM project achieved a 164% annualized return on investment (ROI).
“When you call a customer and you already know which products they have, it makes the conversation more personal and more effective than using a generalized approach,” says Khair. “That can only be an advantage to Maybank.”
Invested in Customer Engagement
Maybank plans to explore additional opportunities to boost sales performance, customer satisfaction and ROI. For example, the aCRM team is looking to optimize system usage and expand the number of data sources and channels.
One item on this agenda is the integration of Internet banking data into the marketing data mart so click-throughs on the website can be tracked and the resulting knowledge used to communicate even more effectively with customers. Another project will focus on multi-channel, multi-step marketing efforts as the team starts to explore micro-customer segmentation, risk profiling, a customer loyalty program, value-based pricing and differentiated services.
As Maybank pursues continuous improvement in the hyper-competitive financial services market, it is banking on its partnership with Teradata. “Other vendors come in, install software, and go on their way,” says Fadzil. “The Teradata experts take the time to talk with us and find out how we are doing, and they help us learn how things can be improved. Teradata provided us with business consultants who understood our industry needs. Their experience helped us reduce our learning curve and deploy the solution faster. We have a real partnership that will support not just our growth, but our ongoing success.”