Event Based Marketing - Bank Case Study
Based Marketing [EBM] uses software-based rules and triggers
that detect, analyze and interpret customer events, transactions
and interactions. This enables companies to provide timely and personalized
attention to customers who may be in decision mode with regard to
a product or service.
Bank Leumi, ranked one of Israel's top five companies in 2006
in trade volume, according to a new Business Data Israel report.
"Communicating to millions of individual customers through
a variety of channels is complex and challenging," said Itzhak
Malach, First Executive, head of operations, information systems
and administration at Bank Leumi.
To create relevant dialogues with customers across channels and
serve them wherever they are.
Solution - Teradata EBM
The bank first installed its Teradata Warehouse in 2004, building
on to it with Teradata Customer Relationship Management [CRM]
Teradata's event-based solution library contains more than 1,000
defined customer events that are data warehouse-driven and used
across industries around the world.
"In terms of performance and speed of data analytics, Teradata
has no competition," said one of the original customer-users
of Teradata's EBM solution, Fernando Ricardo, now program director
of Program REACH at Westpac Banking Corporation in Australia.
Using Teradata data warehouse-driven CRM tools the bank is now
able to create relevant dialogues with customers across channels
and serve them wherever they are.
This has resulted in a constant improvement in customer management
"Companies across industries and the globe continue to adopt
Teradata CRM for event-based marketing because we have a decade
of experience, proven methodologies and leading technology,"
said Sam Gragg, vice president of Teradata Customer Management Solutions
Marketing. "Over time, we have worked with our customers to
identify more than 1,000 potential events across many industries,
ranging from the simple to the highly complex."
EBM was built into Teradata CRM in 2003. "EBM is designed
to focus on individual customer behaviors," Customers initiate
a relevant communication based on something significant that they
do, rather than being targets for a particular product or service.
This was the beginning of true customer-driven marketing.
Expected Return on Investment
In July 2006 Chinatrust Commercial Bank reported NT$479 million
in new business on their Teradata EBM solution, repaying the cost
of the first 10 campaigns and generating an average return on investment
[ROI] of 168 percent.
- Chinatrust campaign targeting former customers resulted in a
52%t renewal rate.
- Customers' loan needs campaign achieved a 32% success rate,
- Customer retention campaign produced a 24%success rate, and
an ROI of 220%
Other Customers include British Airways, Continental Airlines,
DnBNor [Bank of Norway], Travelocity.com, Verizon Wireless, Westpac
Bank, and a number of premiere gaming and casino businesses. Online
retailer Overstock.com also uses Teradata event-based triggers in
user-based events from their web page, which automatically generate
targeted e-mail marketing campaigns.
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