Download Targeted Marketing at the ATM

Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry
Targeted Marketing at the ATM
Kate Monahan
Analyst
Aite Group
© 2009 WAUSAU Financial Systems
www.wausaufs.com
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Aite Group (eye-tay)
Research and advisory firm
that helps financial services firms
-- and their providers -profit from customer, technology,
and regulatory change
© 2009 Aite Group, LLC
www.aitegroup.com
Aite Group Bank ATM Executive Study
• Aite Group conducted a survey of 23 of the
top 80 U.S. bank ATM executives
• Study fielded from February to April 2009
• Targeted marketing one of many areas
included in the study
© 2009 Aite Group, LLC
www.aitegroup.com
Agenda
• What is targeted marketing and how might it help
your institution?
• What is the current state of targeted marketing at the
ATM channel?
• What are the challenges banks are facing in moving
to targeted marketing?
• Examples of global bank use of targeted marketing
• Case study: First Tennessee’s use of targeted
marketing
© 2009 Aite Group, LLC
www.aitegroup.com
What targeting marketing at the ATM offers
• Opportunities to reach out with personalized
marketing message to your customers and noncustomers
• Ability to customize your marketing messages for the
self-service media
• Ability to deploy campaigns without the heavy costs
associated with paper marketing efforts
© 2009 Aite Group, LLC
www.aitegroup.com
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Few US Banks are taking advantage
of targeted marketing
© 2009 Aite Group, LLC
www.aitegroup.com
Challenge #1: Outdated ATMs
© 2009 Aite Group, LLC
www.aitegroup.com
Challenge #2: Disjointed operating systems
© 2009 Aite Group, LLC
www.aitegroup.com
Operating systems greatly vary by institution
© 2009 Aite Group, LLC
www.aitegroup.com
Targeted Marketing In Use: Asia-Pacific
• Singapore-based bank with nearly $80 billion in assets
• Between 70-80% of customer transactions take place at
the ATM
– Started with integration of ATM marketing software with
bank’s CRM solution
– First used for personalization at the ATM
– Moved to offering targeted marketing at the ATM
Results
60% uptake in setting preferred transaction option
50% higher uptake via targeted ATM marketing than direct mail
© 2009 Aite Group, LLC
www.aitegroup.com
One-to-One ATM Marketing
© 2009 Aite Group, LLC
www.aitegroup.com
Outline
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Background
Product/Vendor Selection
Process
Types of Campaigns
Challenges
Results
© 2009 Aite Group, LLC
www.aitegroup.com
Background
• First Tennessee Bank, a division of First Horizon
National Corporation, is based in Memphis, TN.
• Over 6,000 employees with assets exceeding
$30 billion.
• Named by Working Mother and AARP
magazines as one of the best companies to
work for.
© 2009 Aite Group, LLC
www.aitegroup.com
Product Selection
© 2009 Aite Group, LLC
•
Needed a solution to ‘reach out and touch’
the customer
•
Diebold’s Campaign Office offered a
package that covered other needs.
•
Cost effective channel of marketing
•
Allows customer feedback
•
Capability to customize screens
•
Multiple campaigns can run at the same
time.
•
Campaigns can target a location or a
customer segment.
www.aitegroup.com
Vendor Selection
• Convenience – works with our existing
equipment.
• Availability – local office provides on-site
support
• User Friendly – other programs were time
consuming; harder to maintain
• Support – Outstanding technical support
• Experience – Recognized and respected
name in ATM products
© 2009 Aite Group, LLC
www.aitegroup.com
Process
• Style of campaign? (Display, prompt, or
questionnaire)
• What products we will market?
• Method of delivery? (Location or Segment)
• How do we disclose product information?
• What type of prep work is required?
© 2009 Aite Group, LLC
www.aitegroup.com
Getting Started
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Pilot of 10 ATMs
Ran one campaign for two months —
targeting non-bank customers
Added remaining ATMs and increased
campaigns to include “on-us” cardholders.
Campaigns included checking, savings, CD,
HELOC, HELoans, and Business Savings
products.
Campaigns and disclosures updated
monthly. Marketing provides graphic files,
coupon files, and the consumer segment file,
which are uploaded into Campaign Office.
© 2009 Aite Group, LLC
www.aitegroup.com
Example of campaign screen
© 2009 Aite Group, LLC
www.aitegroup.com
Campaign example
© 2009 Aite Group, LLC
www.aitegroup.com
Disclosure Example
© 2009 Aite Group, LLC
www.aitegroup.com
Lessons Learned
• Most difficult obstacle — getting the consumer segment to
upload because the file was so large.
• Issues with the print size being too small on the receipt.
• Campaigns can auto deliver by setting a specified date;
sometimes one gets “hung-up” and requires manual
intervention.
• Text to speech — words keyed in are not always pronounced
properly (e.g. bonus).
• Recommend having a “test server and test unit” to see how it
looks on a production ATM before campaign is delivered.
• ATM marketing channel is more cost effective than direct
mail and customer responses can be seen immediately on
reports.
• Customers’ transaction time not impacted by a campaign.
© 2009 Aite Group, LLC
www.aitegroup.com
Results
• First campaign targeting “non-bank” customers had a
13% response rate
• Overall average response rate for “non-bank”
customers is 11%
• Overall average response rate for “on-us” campaigns
is 4%
• Best responses were on campaigns targeting “nonbank” customers where a promotional item is given
away
• New accounts to date: 2,000
© 2009 Aite Group, LLC
www.aitegroup.com
Questions?
© 2009 Aite Group, LLC
www.aitegroup.com