Situation
HSBC Bank USA, a member of the global HSBC Group, serves more than 1.4 million retail banking customers, providing a variety of checking, investment, loan, and other financial products through 380 New York banking locations. HSBC Bank USA, with $35 billion in assets, also serves business and commercial customers.
Critical issue
A typical branch of a neighbourhood bank might have up to half dozen or more competitors in close proximity, creating continuous competition to attract and keep potential customers in the surrounding area. To maintain high customer acquisition and retention rates, and keep operations profitable, bank goals often include:
- Expanding relationships with current customers
- Keeping marketing costs low to maintain margins
- Moving to market quickly with new intelligence
Solution
With SPSS, HSBC Bank USA effectively mines an ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.
Focusing on the best prospects for each product helps maximize sales and minimize marketing costs. SPSS’ ease of use helps researchers deliver intelligence faster to decision makers.
Results
- Identified specific customer needs, boosting sales by up to 50 percent
- Reduced key marketing costs by 30 percent
- Increased ability to create and deploy timely marketing strategies
Now, this is just one of such examples of the industry solutions provided by SPSS.
The SPSS solutions for Financial Services also include –
- Conduct effective customer segmentation to differentiate profitable customers from those that represent a loss
- Minimize your customer acquisition costs with focused strategies
- Capitalize on points of interaction by detecting and acting on opportunities to maximize customer lifetime value
- Increase capital efficiency by minimizing fraud, credit and money laundering risk
Conclusions
SPSS enables financial services organizations to pursue aggressive customer growth strategies through cross-selling and up-selling. By capitalizing on all customer touch points - such as branch offices, contact centres and web sites, such companies leverage real-time analysis to increase the value of customer interactions by determining which offers provide the highest mutual value, and then applying that insight on demand.
By elevating direct marketing efforts using IBM SPSS analytics to target the right customers at the right time and through the right communication channel, banks are able to improve satisfaction levels, increase brand awareness and capture those customers most likely to respond and become profitable clients.
References
http://www.spss-sa.com/consulting/industry-solutions
http://www.spss.com.sg/data/files/pdf/stories/Financial%20Services/HSBC%20USA.pdf
GROUP 1 - FINANCE
AUTHOR - Anurag Sharma (13126)
Good Job !
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