Rich Jones, Principle Leading2Leadership LLC 720.256.4936, rich0747@ comcast.net @rich0747 Making Data Actionable
Aug 21, 2015
Rich Jones, PrincipleLeading2Leadership LLC720.256.4936, [email protected]@rich0747
Making Data Actionable
www.youtube.com/watch?v=449twsMTrJI&feature=youtu.be
Data is too important to be left to bean counters and report writers
Data needs to answer business questions with actionable information
So, what’s getting in your way?
Customer Perception?
6
Lack of software/resources?
Lack of Skill, Money, or Time?
Where do I start?
It Starts With a Strategy
Big Data Strategy1. To provide the data, data integrity and data awareness, the
reporting and analysis expertise and the tools and services to allow the bank or credit union to become a data driven organization for strategic, financial and operational planning
a) Create marketing efficiencies by target product and service offeringsb) Use data to discover organizational efficienciesc) Change decisions from “I think” to “I know”
2. To win, we need to excel at a) Data Accessb) Data Miningc) Data Analysisd) Data Visualization
Data sourcesData you don’t haveAggregate dataSet definitionsChoose the tool/softwareDetermine the budget and staffing model
BIG DATA “To Do” List
Set Milestones
• Data Strategy organizational buy-in
• Create definitions• Evaluate Data gathering, storing
and mining tools and resources• Identify tool and resource gaps• Plan to fill gaps• Establish utilization and
reporting elements
Data Sources
*Unstructured
• Core• Online and Mobile banking
platforms• MCIF/CRM• Loan Originations• Credit Bureaus• PFM• Credit Cards• Social Media*• Customer feedback loops*(Some data you hold, some is held by 3rd parties)
Set Definitions• Customer• Household• Core Deposit• Term Deposit• Consumer Loan /
Mortgage loan• Active Customer / Active
Account• Inactive customer /
Inactive Account• New Customer
Start NOW with Core Data• monthly ACH deposit to another FI• monthly bill payment via providers
website• automatic loan payment to another FI• with no checking• With no debit card• with inactive checking/debit• without a credit card with you• with A credit and low deposit balances• with high deposit balance and no loans• without mortgages with you • with one auto loan• with $10K of deposit balances
Our Job is to put a Face to Data
Opportunity Analysis
80%
20%
Deposit OpportunityCurrent Household DepositsCurrent Household Deposit Opportunity
41%
59%
Loan OpportunityCurrent Household Loans Current Household Loan Opportunity
Total Employees 400
Household Per Employee 40.75%
Total Members 279
Total Households 163 Deposit Information Loan Information
Current Household Deposits $ 5,188,468.00 Current Household Loans $ 2,746,984.00 Deposits per Current Household $ 31,831.09 Loans per Current Household $ 16,852.66 Total Employee Deposit Opportunity $ 10,811,532.00 Total Employee Loan Opportunity $ 13,653,016.00 Current Household Deposit Opportunity $ 1,331,532.00 Current Household Loan Opportunity $ 3,936,016.00 Remaining to Maturity (27% Share of Wallet) $ 359,513.64 Remaining to Maturity (34% Share of Wallet) $ 1,338,245.44 % HSA Households 1.23% % Loan Households 68.71%
Marketing and Data Use
Avoid Vanity Metrics• These “vanity metrics” include
– Total page views– Twitter followers– Likes– Visits
• The strongest marketers are the ones who collect actionable data.
Ask the “So What Question”• To be more actionable with
your analytics, start with the “so what?” question. – For example, click-through
and blog views are nice to have, but do they impact revenue?
• When you frame your decisions through the “so what?” question, you’re beginning to dig deeper into analytics.
5 ways to make the most out of marketing analytics
1. Stop relying on gut instincts• 40% of marketers say that they use intuition to make decisions. • Way too many businesses are just gambling on their marketing plans. • Bad guesses waste your time and resources. • Since these marketers probably don’t measure the outcomes of their
decisions, they are also likely to repeat past mistakes.
2. Don’t be a lukewarm user
• ~50% of marketers believe that their most under-utilized asset is their data.
• Do your homework. • walk you through the basics
of conversion goals, and traffic channels.
• It takes more effort to set up individual campaign tracking, it’s worth it when your actionable data starts pouring in.
3. Focus on what members are doing• Better understand your customer
behavior • Track customer paths• Run behavior reports to figure out
what people are doing on your channels.
• Evaluate drop-off points.• A/B testing is critical • A low 24% of marketers create and
test hypotheses. • Marketers are missing the
opportunity to collect real data and improve the customers’ experiences.
4. Be consistent with analysis• When marketing departments are busy, complex analysis can become a
lower priority. • That’s why only 37 percent of marketers use analytics on a regular basis. • Analyze your past data• Make smart predictions about future campaigns. • Using analytics to improve marketing campaigns can save time—and
increase revenue.
5. Assign real dollar values• 1/3 of marketers track ROI on their campaigns. • Dollars and revenue need more of your focus. • Don’t spend all your time on numbers, focus on dollars.• Work with your CFO or VP Finance help you calculate the actual value
of your marketing efforts. • When you calculate values for customer actions, you can calculate ROI. • This makes it much easier to prove the success of your
Actionable Data Leads to Better Marketing• When you are collecting actionable data, you can
make better marketing decisions.
Gather Data
• Identify you data sources
• Build or buy a place to store this data (MCIF/data warehouse/CRM)
• Prioritize what data to collect first– Priorities should align
with your FIs KPIs and Strategies
Organize Data• Store data in identifiable
segments (transaction data, balance data, process data…)
• Knowing what data resides where allows you to access it in the future
• Organize for tracking and trending– Use KPIs– Use Strategic goals– Use Key Ratios
Identify Relevant Data• Always start with a
question you want the data to answer then isolate, track and trend that data
• There is too much data and not all of it is relevant all the time
• Identify which data will provide the answer to your questions
Use Data to Create EfficienciesFrom
• Blast Marketing >>>>>>>>>>>>>>• One size fits all >>>>>>>>>>>>>>• We did good >>>>>>>>>>>>>>>>• We got a lot of new business >>>• We grew balances >>>>>>>>>>>>• Assuming everyone wants
everything >>>>>>>>>>>>>>>>>>• Not knowing the customer >>>>>
To
• Segmented Marketing• One size fits you• We had X return• We opened X new accounts• We grew balances by $X• Your customer is looking for
this one thing• Knowing the customer
How?
• Create smart targets• Create lists from these targets• Create a campaign goal• Store this list info with historical markers• Add the average per unit/balance profit for this
offer (work with finance to determine)• Append this list for activity/changes• Build a report to demonstrate this activity• Store this activity for future use/forecasting
Create a Target Lists• Monthly ACH deposit to another FI• Monthly bill payment via providers
website• Automatic loan payment to another FI• No checking• No debit card
• Inactive checking/debit• No credit card with you• A credit and low deposit balances• High deposit balance and no loans• No mortgages with you • One auto loan• $10K+ of deposit balances
Create a Marketing List
• Remove from the list– In collections– Sub-par members (CUs)– Underage customers– Do not market
Create Campaign Goal
• By units• By balance• By utilization• Goal should match
what the campaign is trying to accomplish
Store these Lists Under Unique Names
• Excel spreadsheet• Data warehouse• MCIF• CRM• Be sure to include
historical markers based upon the goal
Add Product/Balance Profit
• ROI or MROI (pros/cons)• Work with Finance• Average 1st year profit by:
– Unit – per auto loan– Balance – per $1000– Customer– Household
• Add this profit estimate to the tracking report
Append this List
• Same definitions• Same data source• Add appended data to
original list with historical markets
• Append weekly/ bi-monthly/monthly/…
Track, Trending, Reporting
• Build a report• Compare historical marker
to current• Present graphically
(visualize the data)• Tell the story – keep it
pithy…
Store for Future Reference
• Improves your goal setting• Helps with forecasting• Helps with budgeting
Three must measurements
• Engagement• Lead Generation• Utilization
Engagement
• Products per customer• Products per household• Balances per customer• Balances per household
Lead Generation
• Inbound Marketing• Social Media• Branch traffic• MCIF/CRM• eMail/Direct Mail• Outdoor• Events• Content Marketing• New customer marketing lists• SEG/Business Partner
employees
Utilization• This metric is the one that matters the most to your C-suite. • Did your marketing compel people to come in for an appointment
or attend an event? • Did you marketing result in product adoption and balance growth?• Match the marketing group to those who actually walked through
your doors—and give you a direct ROI/MROI on your effort.
Tweak and Start OverData quickly becomes addictive
Data will temper the “gut” and mitigate the “I think(s)”
"Information is the oil of the 21st century, and analytics is the
combustion engine.“Peter Sondergaard, SVP Gartner Research
Rich [email protected] LLC
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