Committed to “helping Britain prosper,” Lloyds Banking Group serves 25% of Britain’s first time home buyers and 20% of business start-ups through their multiple brands. Data and analytics are at the core of the bank and are an integral part of Lloyds’ mission for the people of Britain.
“It’s across both operational and analytical data. It’s very much understanding the customer, providing a single view of the customer and their interactions with the bank, then being able to provide them with the best offers around products and their finances. It’s also to protect their data with support, risk systems, fraud systems and fraud identification. We provide that deep understanding of the customer in order to be able to set strategy, pricing, and organize the bank in the best way to be able to support both retail and commercial customers.” Simon Howarth, Chief Subject Matter Expert, Information Management.
The ‘mantra’ within IT at Lloyds is, “service is number one priority,” bridging architecture and the practical implementation of strategy. IT designs and manages the eco-system while different groups ‘crowd fund’ initiatives that benefit all of Lloyds in the areas of income generation, new product strategy, meeting regulatory requirements, customer experience and cost management.
When it comes to analytics and creating those business outcomes, Lloyds follows a winning process starting with a small ‘proof of value’ using minimal data and a known ‘kit.’ Then the team will bring in IT and different business areas together to identify common goals. That’s when the ultra-unique ‘crowdfunding’ comes in to support different analytics initiatives and they deliver quickly with short sprints, share the findings and build more support.
In just a short time Lloyds Banking Group got quick wins with three separate Teradata Aster™ projects using the same 200 datasets
- Transactions at the branch, internet banking, or ATM,
- Digital (web, mobile and tablet platforms)
- Telephone interactions with call center agents initiated by the customer or the bank
- Updates to account/customer profiles
- Outbound and offline marketing
- Feedback (NPS surveys or complaints)
Use Case #1: Distribution Strategy
This included an investigation into what drives activity into bank branches, a significant and strategic impact to their cost infrastructure. Key questions were asked during this use case including where should they invest bank branches over the next X years, number of ATM’s needed and where, along with the mix of skills and staff needed at the branches.
Use Case #2: Call Center Volume Investigation
Following the results of the distribution strategy use case above, our consultants were asked to analyze unexpected charges in customer call centers. Customer calls had been declining steadily and naturally the bank was staffing toward that decline. Yet, in November 2015, the decline turned upward and the bank worried that call volumes would continue to trend upward with service levels and customer satisfaction being impacted. Call center staffing is a significant investment and the bank wanted to control and mitigate risk associated with cost of potential dissatisfaction. And customer satisfaction is important!
The team gathered banking transactions and marketing interactions to sessionize the data and place it in a chronological order to understand when customers called (4 months of call center data, 4 months of subsequent banking transactions and 4B rows in Aster.) And the triangulation began.
- If you are an active account, 20% of that base called into the call center
- If you were a payment customer, 26% of them would call into the call center
- If you were a credit card customer, 33% would call the call center.
Upon further investigation, they realized that government tightened the rules for credit card which may have triggered their calling. And for fraud alert transactions, there appeared to be a strong relationship between experiencing an alert and calling a call center. There was strong evidence of rapid responses to fraud alerts with a pronounced spike into the call center. Think about it. If you received a text message that there was fraudulent activity on your credit card, how would you respond?
Use Case #3: Investigate Contactless Payments
There was strong evidence that contactless payment events often preceded call events, but there appeared to be a significant lag between payments and calls, that supporting the view that there is a “sudden shock” for customers when they realize that something isn’t right with their statement or transactions,
“Paths aren’t linear for somebody to actually get a product. Traditionally what we’ve done is look at a product’s completion; therefore the person has gone through step one, two, three. Actually, people go through steps one, two, back to one, then to three, back to two, back to one again, off out somewhere else. You can see a lot of looping going on, and that’s quite inefficient while it’s happening. So, a lot of the changes, or some of the changes that came off the back of that, aren’t actually to do with IT systems and what we’re actually going to do in the IT process. They’re to do with business process and how that then will result in success.” – Simon Howarth, Chief Subject Matter Expert for Information Management
The Group has used Teradata Customer Interaction Manager (CIM) for 8 years. CIM helps to consolidate and organize data so that Lloyds Banking Group can
- Segment target audiences into meaningful groups;
- Visualize the impact segmentation strategies will have on engagement;
- Select the right message for the right customer;
- Predict customer responses to strategic offers based on historical data;
- Send personalized, relevant and timely messages based on specific attributes and behaviors; and
- Create and manage custom offers that align with a holistic brand messaging strategy.
By knowing the customer’s age and their geo-location on their mobile phone, they can send very targeted campaigns. One-quarter (1/4) of sales come from the campaign management tool. One of the biggest benefits of the Teradata CIM tool is the ability to tune a campaign, leading to an uplift in revenue.
Congratulations to Lloyds Banking Group for all of your success!