Isbank's Segmentation Strategy Boosts Customer Satisfaction

By developing its 360-degree view of the customer, Isbank ensures that targeted marketing campaigns remain relevant across channels, eliminating redundant communications to build and sustain customer loyalty.
Customer Experience
Bronze: Integrated Marketing

Business Boost: Since implementing its optimization initiative in June 2013, Isbank has conducted 601 SMS and email campaigns, 11 ATM and Internet branch campaigns, and 34 branch campaigns-141 million customer interactions in all-boosting annual profits by 23.5 percent compared to Q3 2012.

While Isbank may be Turkey's first truly national bank, its leading position and achievements in the sector stem from its customer-centric marketing strategy. But, as today's customers become more demanding and empowered, Isbank must constantly seek better ways to adapt in order to establish and maintain valuable, enduring customer relationships, build efficiency throughout its operational process, improve financial outcomes, and create positive customer impact.

Thus, Isbank moved to organize its operations around customer-value based segmentation and micro-segmentation, actively using analytical models, such as lifetime value and customer churn, to embrace predictive analytics and data mining.

"The shift to a customer-centric organization was built upon customer-value based segmentation and micro-segmentation and granted us the ability to differentiate our customer service levels within each of our channels, particularly in the call center and branches," says Murat Kaya Besiroglu, customer insight manager. "Customer-value based segmentation and micro-segmentation enable us to offer our customers customized products which fulfill their specific needs and expectations, resulting in increased customer satisfaction and cross-sell ratios, which in turn lead to customer loyalty."

Much like many companies across industries, Isbank's primary goal focuses upon pinpointing the appropriate analytics and data in order to make difficult decisions about targeting the right customers with the right offers from the right channels at the right time while staying within budget and at channel capacity. By taking customer preferences and contact policies into account, however, Isbank has established a marketing optimization strategy that aims to increase customer satisfaction and loyalty by limiting communications in an effort to reduce fatigue.

Through its "Stages of Relationship" programs, Isbank issues customer-oriented "Welcome" and "Activation" multichannel informational communications to ensure relations with new acquisitions are conducted soundly, while "Retention" and Recovery" activities deploy as the result of the customer churn model. Isbank's Customer-Centric Transformation program, on the other hand, was created to restructure the bank's processes by concentrating on its customer-focused approach by introducing the 360-degree view of the customer, including all relevant data, such as product and channel usage, customer value, risk, and demographics, and making said customer interaction history accessible for all employees using Isbank's new Sales and Service Platform courtesy of SAS Marketing Optimization.

These insights then flow across branch, Internet banking, call center, ATM, IVR, SMS, and email channels, organizing campaigns and enhancing the customer experience through integrated multi-step, multichannel campaigns. For instance, when customers respond to offers displayed on one of the various delivery channels, such as ATM or Internet, the promotional item will no longer be displayed on other channels, for the company's real-time offering system enables the team to generate sales or discounts on ATMs and Internet branch and dispense them according to how well the given customers match certain criteria.

Overall, when Isbank's optimization initiative went into effect June 2013, the integrated multichannel campaign management system conducted 601 SMS and email campaigns, 11 ATM and Internet branch campaigns, 34 branch campaigns-141 million customer interactions total. The hard response rates for branch campaigns also increased by 6.6 percent compared to 2012 Q3, while the profits generated from branch campaigns and the annual profit of products sales jumped to 23.5 percent as compared to 2012 Q3.