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  • admin 9:51 am on May 28, 2015 Permalink
    Tags: Argentina, ICBC, TripleDigit   

    Triple-Digit ROI for ICBC Argentina 

    ICBC Argentina continues to be an innovative force in the marketplace. The Buenos Aires-based bank, which is one of the top 10 private banks in Argentina, earned an estimated ROI of nearly 400% after utilizing business and customer insights gained through analytics.

    When the bank’s portfolio forecasted a worsening of the economic cycle, ICBC Argentina anticipated that more staff would be needed in the collections call center. However, instead of hiring new agents and spending upwards of $ 23,000 per person, the bank analyzed its processes to look for opportunities to make current operations more effective and efficient. The bank’s new strategy, which uses a predictive data model, resulted in:

    • Increased collection efficiency
    • 43.5% reduction in outbound call volume
    • 59% decrease in written notices
    • 392% estimated ROI

    The bank now has more successful case management using the same resources but it didn’t stop there.

    To learn how ICBC Argentina capitalized on cross-sell opportunities, read the full article in the Q2 2015 issue of Teradata Magazine. 

    Carly Schramm
    Assistant Editor
    Teradata Magazine

    The post Triple-Digit ROI for ICBC Argentina appeared first on Magazine Blog.

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  • admin 9:51 am on May 16, 2015 Permalink
    Tags: CrossSelling, ICBC,   

    The Cross-Selling Machine at ICBC 

    There was an excellent turnout recently for the Teradata Summit events held in Sydney and Melbourne, with the highlight for me was the presentation on Cross-Selling at ICBC Argentina by Pablo Licheri and Eduardo Donato. ICBC (Industrial and Commercial Bank of China) is the world’s largest bank and ICBC Argentina was the first ICBC acquisition outside of Asia.

    Teradata Summit

    Driven by the decline in the Argentinian economy (from GDP growth of 8.8% to 1%) in 2012 ICBC was faced with a challenging and competitive market that had for the last 10 years focused primarily on new credit card customers. The business needed to find new initiatives to achieve the required growth. Their answer was to focus on growing the value of existing customers.

    Table A – USD dollar total operating revenue for customer based on number of products.

    A standout for me was the value calculations of the revenue generated by each customer based on the number of products they used –see table A. When you combine this with the fact that it cost a lot less to sell a new product to an existing customer than to acquire a new customer the business drivers spoke for themselves.

    ICBC were at an advantage as they were already consolidating their data into a single integrated data warehouse so the focus was on the modelling of customer behaviour to predict customers likely hood ((propensity)) to purchase other products. These models were used to develop targeted campaigns that were then intergrated into operational workflows to present offers to customers via the home banking website, call centre, mobile banking application, branch queue tickets (Argentina must have long queues at their branches, direct mail offers and ATMs. Now that is Omni channel!)

    The key is to stay relevant to customers with offers for things they need and to communicate to them through their preferred channel at the right time (and not too often). Figure B outlines this philosophy at ICBC.

    Figure B – The key principles of a cross selling machine

    And what were the results? A 62% increase in campaign response rate and a 15% improvement in average number of products per user while the industry grew at only 5%. ICBC Argentina still has a little more work to do to catch the market leaders but they are heading in the right direction.

    The Teradata Summit events are always worth the while to attend. I love to see local and overseas presenters talking about real world experiences with data analytics.

    Lookout for the next summit series to be held in Melbourne on (Tuesday 18th August 2015) and Sydney (Wednesday 19th August 2015).

    Teradata Summit

    Gareth Clayton is a Senior Industry Consultant at Teradata with over 16 years experience in business analytics and information management. He has a diverse background in many industries but primarily in Telecommunications and Banking. Gareth is also passionate about educating the next generation where he has been a guest lecturer at La Trobe and Victoria Universities on the practical application of predictive analytic theory in a business context. Follow Gareth via twitter @AnalyticsROI or connect via Linkedin.

    The post The Cross-Selling Machine at ICBC appeared first on International Blog.

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