© 2015 Northern Trust Corporation

Leveraging Analytics to Drive Client SatisfactionAndy Curtis, Senior Vice President, Northern Trust

Business Analytics Innovation Summit

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Objective: Leverage Analytics to Drive Client Satisfaction

Start with one business unit or process, work across the framework, and then repeat

Don’t Boil the Ocean.

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Develop 360 Degree Client View

Assess Gaps in Current Client Experience

Link Plans to Fix Gaps with Strategic Goals

Pilot Concepts

Rollout Winners

Analytic Framework to Drive Client Satisfaction

Knowledge

Assess

Link

Test

Launch

Itera

te

Continually Monitor & OptimizeMonitor

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Know Your Clients

Products

Demographics

Share of Wallet

Digital/Social

Survey Data

Goals

Transactions

Attitudes

Interactions

Services

Develop 360º View of Clients with Data from Across the Enterprise

Prioritize data with highest impact and layer additional data over time

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Assess Current Experience

Organize clients into homogenous groups

Start with a few key data dimensions

Identify enough groups (5 to 10) to be representative

Not so many that you can’t manage

Groups should NOT be formed solely on value!

Profile key behaviors and attitudes

Map client journey

Understand product/service usage and gaps

Understand successes and gaps in the experience

Pro

du

ct

Profitability

Demographics

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Link Plans to Strategic Goals

Get the Business Model Right

Quantify potential value based on number of clients and key drivers

Build business case with near-term wins (reduced errors, increased sales productivity, etc.)

Forecast the 3-5 year impact of the program

Always think about what you will do for an encore (cheap airfares boosted near-term profitability, but destroyed the business model)

Designing programs that are win / win for the business and the client

ClientGoals

BusinessGoals

Balancing Client Goals with Business Goals

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Example: Upgrade CRM System

Key Questions Answers

1) What is the opportunity? Improve client interactions and satisfaction by freeing up RMs and providing 360 degree client view

2) How big is the opportunity? Over the next 3 years, eliminating non-sales activities will: Enhance Satisfaction by X% Grow Revenue by X%

3) How to execute against the opportunity?

Customize CRM system to streamline and automate processes

Make system organizational priority Target high-value clients and prospects

4) How do I measure progress towards the opportunity?

Break down plans into monthly goals Track progress towards goals with dashboards

and reports Regularly review and publish reports and

dashboards across the organization

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Example: Building a 3 Year Plan

Build 3 year forecast leveraging Starting population Revenue per active

YearStatus 0 1 2 3New 400 400 400 400 Active 600 720 832 939

Lapse 1,000 1,280 1,568 1,861 Rev ($M) 1,080 1,248 1,409 3,737

Year 2

Year 1 Active

Lapse

New 50% 50%

Active 70% 30%

Lapsed

10% 90%

Status # (K) %

New 400 20

Active 600 30

Lapsed

1,000 50

12 Mo Rev %

$5 K+ 5

$2 to $5 K 15

$1 to $2 K 20

< $1 K 60

Average $1,500

200

100420

720 K * $1.5 K =

* All numbers are fictional NTAC:3NS-20

Example: Run What-if Scenarios

10% Acquisition Improvement: $158 M

10% Cross-Sell Improvement: $374 M

10% Retention Improvement: $799 MYear 2 Year

Year 1 Active Lapsed Status 0 1 2 3New 60% 40% New 400 400 400 400 Active 80% 20% Active 600 820 1,014 1,190 Lapsed 10% 90% Lapse 1,000 1,180 1,386 1,610 Rev / Year $1,500 Rev ($M) 1,230 1,521 1,785 4,536

Year 2 YearYear 1 Active Lapsed Status 0 1 2 3New 50% 50% New 440 440 440 440 Active 70% 30% Active 600 740 868 989 Lapsed 10% 90% Lapse 1,000 1,300 1,612 1,931 Rev / Year $1,500 Rev ($M) 1,110 1,302 1,483 3,895

Year 2 YearYear 1 Active Lapsed Status 0 1 2 3New 50% 50% New 400 400 400 400 Active 70% 30% Active 600 720 832 940 Lapsed 10% 90% Lapse 1,000 1,280 1,568 1,861 Rev / Year $1,650 Rev ($M) 1,188 1,373 1,551 4,111

* All numbers are fictional NTAC:3NS-20

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Test & Measure

“10Xers use bullets to empirically validate what will actually work.Based on that empirical validation,

they then concentrate their resources to fire a cannonball, enabling large returns from concentrated bets”

—Jim Collins

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Test & Measure

In Great by Choice, Jim Collins found that successful companies pilot ideas to hone in on the target before investing a lot of money with the cannonball

Pilot concepts with small prototypes

Measure impact of pilots against key drivers in the business plan

Rollout winning concepts

+ =

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Rollout winning concepts in a big wayGo bold or stay home—to truly differentiate your organization

you need to provide a truly unique, relevant experience

Deliver timely information to frontline partners along with key informationStale data will not provide the impact your organization wantsEnsure frontline partners have the information they need to

provide great service

Launch

12

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Continually Monitor & Enhance

Leverage Big Data to Monitor Client Sentiment

Monitor client interactions across listening channels

Deliver information to key stakeholders along with relevant information

Utilize sentiment data to create feedback loop to continually evaluate and enhance the program

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Concluding Thoughts

Leverage data to know your clients

Assess the client journey

Get the Business Model Right

Fire Bullets Then Cannon Balls

Go Bold or Stay Home

Continually Monitor & Enhance

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Questions

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© 2015 Northern Trust Corporation

Business Analytics Innovation SummitThank You

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