Gazprombank implemented the Next best offer system based on the analytical solution of SAS

2019

Completion of implementation of Next best offer (NBO) based on SAS RTDM

The companies Gazprombank GlowByte Consulting announced also on November 26, 2019 that they completed the project on system implementation of Next best offer (NBO) based on the analytical solution SAS RTDM (Real-time decision manager).

"The following best offer" (Next Best Offer, NBO) in general represents a sheaf a product + the communication channel for each client. In September, 2019 in bank personal offers when which forming first of all analytical probabilistic models of a response are used became available to all staff of offices and call center operators in a single window.

Now clients of Gazprombank receive those offers most of which suit them at the moment. The NBO system defines the best offer for the client, proceeding from a context of interaction and the previous story of the relations. On a withdrawal of bank, NBO provides 89% a scope of the customer base. Besides, thanks to external data, it was succeeded to use functionality of NBO and for new clients of bank.

In general the project Global RTO began summer of 2018, and consisted of three stages:

• 1. SAS RTDM system implementation, for calculation of personal offers in real time.
• 2. SAS ESP system implementation, for processing of flows of client events and instant reaction to them.
• 3. Deployment of functionality of NBO for achievement of client model 360 view.

The RTO system is integrated into general strategy of communication with the client and allows to make communications and to attract clients on retail products and services of bank with bigger efficiency, than at traditional off-line approaches. Digital and remote communication channels, such as push-notifications, SMS, call center, Email banners in mobile bank are already connected. Further the bank is going to increase number of communication channels.

Project objectives of RTO is development of cross-sellings of retail products and services of bank and also increase in a customer loyalty due to the choice of the correct time for communication and a shorter reaction time. The project will allow to implement effective CRM campaigns within client scripts taking into account customer needs "here and now" that will significantly increase not only effectiveness of attraction, but also will positively influence client experience. So, the response in campaigns for promotion of card products increased by 2.5-3 times for a number of communication channels and reaches in some cases up to 3-5% of the created requests of the delivered messages — Alexey Martyanov, the vice president - the head of the department of CRM and development of digital channels of sales of Gazprombank commented on the project.

The first a campaign was implemented by Real-time at a starting stage of the project and started in December, 2018. Results exceeded expectations - for example, open-rate by email to mailings reached 71% that is rather high rate for email marketing, noted in GlowByte Consulting.

As of November, 2019 the response to target offers on consumer crediting reaches 8-9% of the considered requests of the delivered communications, and the volume of secondary sales significantly increased at the expense of new Real-time of approaches to formation of campaigns for the offer of consumer loans and credit cards of bank.

At the time of transaction at gas station the RTO system defines that the client often pays with the card for fuel and it is profitable to it to issue the debit card with the loyalty program of the partner company of bank. As a result within a minute after payment the client receives the Sms or the push-notification with the offer of the card with the loyalty program allowing to accumulate points and to pay off with them at gas station. The client can issue the card through digital channels.

The project allowed colleagues to bring personal communications with clients to the following level, making a start from current demands of the client and offering it the product or service suitable at present. The implemented Real-Time Offering system in real time analyzes data on client activity and makes the relevant proposal. The possibility of flexible configuration of strategy of communication allows to deliver to the client the offer on the communication channel, convenient for it. Indicators of a response to the offers created by the Real-time offering system impress and say that the bank foresees customer expectations, - Evgeny Tveritinov, the head of practice of Marketing Management of GlowByte company noted.

In plans of a command of Department of CRM - piloting of a product of SAS based on the SAS Viya platform, namely the Marketing Optimizer.

Transition to Real-time of technology

On April 8, 2019 Gazprombank reported that it transforms approach to work with clients using tools of SAS. Application of profound analytics and transition to Real-time of technology.

Results of campaigns which we started using SAS Marketing Automation exceeded our expectations, they began to bring to bank an additional income steadily. The subsequent implementation of SAS RTDM allowed us to expand tools and to diversify the used mechanics which allow to reduce a response time by actions of the client and to implement, for example, strategy for customer retention and expansion of their food basket. Alexey Martyanov, head of the department of CRM and development of digital channels of sales of Gazprombank

Gazprombank has an accurate vision what should be their work with clients and what improvements they want to achieve. To us it is valuable that using solutions of SAS bank implements the development strategy and transforms approach to service. System approach allows to derive the maximum benefit and to achieve the best results. Maxim Tsukanov, head of client analytics and CRM of SAS Russia/CIS company

According to the company, for implementing solutions the Glowbyte Consulting command was invited. Also in bank directly under the project of implementation Real-Time Offering own command was collected.

The Next Best Offer project will become the next step in development of processes of CRM bank and work with the SAS RTDM platform. It will allow to choose directly at the time of the entering contact for each client the most suitable offer from among preapproved. It is going to complete the works by the end of 2019.

2018: Implementation of Real-Time Offering

In 2018 the management of bank made the decision on implementation of Real-Time Offering (RTO) based on analytical products of SAS. For April, 2019 investments into the project completely paid off, implementation is in the final stage.

The implementation project began summer of 2018 and will actually end in June, 2019. These terms include stages of collecting and approval of business requirements, preparation of technical specifications, direct deployment and integration of systems, trial operation. To start the marketing campaigns working in real time the SAS Real-Time Decision Manager (RTDM) engine was deployed. On the fly to analyze a flow of transactions of clients, SAS Event Stream Processing (ESP) is integrated. In addition to earlier used SMS and telemarketing, some more communication channels were connected to a complex of CRM solutions.

The project team created processes of start of the next types of the companies from scratch. In particular, based on SAS RTDM trigger mechanics were implemented. The bank started the first trigger campaign in the SMS channel on December 7, 2018. The response to target offers was one and a half times higher, than in a check group. In comparison with "self-feed" the response grew by 10 times, in comparison with normal targeted campaigns (without use of trigger mechanics) – by 3 times.

2017: Implementation of SAS Marketing Automation

Gazprombank started conversions in 2017 when implemented SAS Marketing Automation. With its help the bank performed communications with clients by the SMS and through call center operators. To create more difficult scenarios of interaction for customer retention, sales increases and increases in profitability of clients, tools which would allow to react quickly to different events – customer appeals, removal or depositing funds onto the account, etc. were required. Also it was necessary to make quickly decisions on target communications when external data, for example, from bureau of credit histories arrive. As earlier implemented solutions of SAS provided good results, for implementation of RTO Gazprombank selected tools of SAS.

The SAS Marketing Automation system allows to define exact segments of clients to which this or that product or service of bank can be interesting, in the automatic mode to create for them offers, and then to transfer him to communication channels.