In the first general session at BAI’s 2014 Retail Delivery conference, best-selling author Gary Vaynerchuk challenged the audience to think differently when deciding how to spend marketing dollars. Most of the “middle aged” bankers in the room readily admitted to actively using Facebook, Tivoing through commercials, and looking at their phones as opposed to out the window when riding in a car. Why then are banks still spending the majority of their advertising dollars on generic TV commercials, print ads and billboards and devoting so little of the budget to personalized offers through the social media channels? Compliance is an issue and has been for years, but banks need to figure out how to better leverage social media – it’s almost 2015! Banks need to better understand how their ad dollars can be re-purposed in other ways, especially since even the bankers buying the ads readily admit to finding ways to avoid them.
Omnichannel Still Key Focus Area for Most Banks, Organizational Silos Slowing Industry Progress
As expected, the omni-channel delivery sessions were very heavily attended, often with standing room only. Gareth Gaston, EVP Omnichannel at U.S. Bank, kicked off the track with a summit keynote based around his trip to Chicago. Titled “Lessons from Outside the Industry”, Gareth demonstrated how he was able to leverage the readily accepted self-service solutions in the airline, transportation, lodging and dining industries. He lauded the immediacy of these services, their ability to personalize his interaction and the direct control they provide to the user. Having joined U.S. Bank after a long career in the hospitality and lodging industry, Gareth acknowledged both the challenges and opportunities the banking industry has to achieve customer adoption of the virtual channels offered. He presented an interesting slide titled “Don’t Let the Customer See Your Organization Chart”, highlighting the challenge banks face still face in breaking down the channel silos that are hampering the change necessary to meet customer expectations.
Analytics Key to Expanding Customer Relationships – Bank’s Need Decision Hubs
Advance analytics and improved ways to manage customer information were key themes of both the presenters and for the service providers in the expo hall. Leveraging data to understand where opportunities are presented to expand customer relationships was the focus of a discussion Simon Bennett, SVP Product Analytics at HSBC, led with their partners from SAS. By leveraging a “customer decision hub,” HSBC is able to better manage their data for consistent omni-channel marketing and customer communication initiatives. The customer (transaction and product profiles) developed by this hub are leveraged to drive distribution and channel optimization strategies, as well as a better understanding of the customer’s cross channel experience. HSBC’s success relies on the frontline sales associate leveraging the insights and relevant customer offers developed by advanced analytics. The session wrapped with a prediction from the presenters that the analytics will continue to move in-memory and allow for real time decisions to be derived from large data sets.