The 2013 CRM Elite
Yapi Kredi Bank: Banking on CRM
Yapi Kredi Bank uses lead management to reach new customers.
THE CHALLENGE
Like many financial institutions, Yapi Kredi Bank has historically had a product-centric mentality. The bank, which has more than 6.5 million business and personal banking customers in its native Turkey and other operations in the Netherlands, Russia, and Azerbaijan, put all its focus on selling its retail and corporate banking, credit card, leasing, asset and wealth management, securities brokerage, insurance, payroll, and pension products and services to as many customers as possible.
Naturally, a few heads turned when executives at the 70-year-old banking firm initiated a shift to a more customer-oriented focus that puts the emphasis on what customers really need and want from a bank rather than on what the bank wants to sell them.
THE SOLUTION
The change has resulted in Yapi Kredi doubling its customer base, increasing the number of products sold to retail customers as well as its cross-sell successes, and growing its revenue in the process.
Key to all this has been the in-house lead generation solution that Yapi Kredi rolled out in August 2012. The solution is helping Yapi Kredi predict how business constraints will affect marketing programs and create what-if scenarios to see how the changes will affect overall business outcomes. The solution also helps the bank determine the right channel to use to reach particular customers, in which campaigns to include them, and the right time to reach them.
The bank is also relies heavily on SAS' Customer Intelligence Solutions, particularly the SAS Marketing Optimization product, and SAS Enterprise Miner.
Arzu Umur, director of CRM and campaign management at Yapi Kredi, says the bank implemented SAS Marketing Optimization "with the aim to analyze results using more effective methods." Now, she calls it "essential" to helping Yapi Kredi reach the right customers with the right product at the right time.
That's important, given that the bank has many touch points to reach its customers, including 929 branch offices in 75 cities, nearly 2,900 ATMs, two call centers, email, text messaging, and Internet and mobile banking. "Analysis shows that some customers tend to respond more positively to [automated] campaigns, but the sales process for some critical processes, like loans and complex investments, can only be completed on live channels," Umur points out.
All of the touch points across the sales cycle are integrated together, Umur says, "to present a seamless experience to the customer."
Another goal of the project was to minimize customer effort in the sales cycle. Now, customer product needs are tracked online and passed on to the sales teams for action.
"Customers are more likely to buy products if reached proactively at the time of demand," Umur observes.
"Offers presented to customers from any channel and responded to positively are led to live channels," she adds.
The latest SAS deployment complemented the other SAS solutions that Yapi Kredi had already been using for data mining. It has been an SAS Enterprise Miner user since 2001, relying on the insight provided to assess its customers' likelihood to buy any product or service.
Additional CRM solutions in place at the bank include SAP BusinessObjects for reporting, Chordiant Marketing Director for online and offline campaign management (Chordiant was acquired by Pegasystems in 2010), and a contact management solution developed in-house.
"The most significant benefit of lead generation is giving immediate response to customers' demands," Umur says. "Their product needs are tracked online by the bank, resulting in customers feeling important and cared for, which ensures increased satisfaction and loyalty."
According to Umur, Yapi Kredi has more than tripled sales to contacted customers and tripled its revenue per call.
Its cross-sell index scores—used to measure the number of products a customer has with the bank—increased from 3.6 to 6. Its customer loyalty index scores—based on the depth of the customers' relationship with the bank—increased from 4.2 to 7.1.
Yapi Kredi, a 2012 Gartner CRM Excellence Award winner in customer analytics, also credits the SAS Marketing Optimization solution with "increasing sales rates and the efficiency of campaign offers, decreasing channel costs, and deepening customer relations by means of increasing cross-sell and profitability," Umur concludes.—Leonard Klie
Real Results
- More than tripled sales to contacted customers.
- Tripled revenue per call.
- Increased cross-sell index scores from 3.6 to 6.
- Improved customer loyalty index scores from 4.2 to 7.1.