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Using Analytics to Drive New Business for Small Business

Eric Esfahanian, SVP of Sales and Marketing and General Manager, GryphonMorgan Cambern, SVP and Director of Retail Operations, Belmont Savings Bank

Moneyball and Banking

Data-driven decisions can be come off as completely heartless, baffle people, and defy explanation, especially to the casual observer.

Focusing not just on data, but the right data, means better decisions.

From Worst to First using “Big Data” in 2002• Billy Beane, general manager of Oakland A’s

• Lost star players (Jason Giambi and Johnny Damon)

• Written off by experts

• Couldn’t compete for recognized star players ($$$)

• Signed undervalued “average” players based on, performance indicators that were overlooked by the rest of the league.

• Longest winning streak in MLB history, won NL Championship

• Red Sox adopted technique and The Boston Red Sox won the 2004 World Series, first time in 86 years.

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Moneyball Lessons for Banking to SMBs TodaySabermetrics – The computerized measurement of baseball statistics

• Focus on high-value targets for improvement

• Look at predictive metrics, not outcomes

• Manage based on data, not hunches

• Increase average player effectiveness vs 80/20

The Digital Wave Can’t Be Overstated

95%Percent of ALL banking transactions will be handled digitally in 5 years

The Digital Wave Can’t Be Overstated

60%Percent of ALL active digital clients ARE also active retail-branch users

Digital Innovation is Evolutionary…

65%Percent of customers interact with their banks through multiple channels.

Aite Grp Oct 2015

…not Revolutionary

75%Number of new accounts that are still opened at a physical branch

Aite Grp Oct 2015

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The Bottom Line

The Opportunity to Build Loyalty with Clients in Banking Has Never Been Greater……Optimizing Client Interactions has Become Essential.

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Universal Banker at-a-Glance

Multi-purpose banker capable of performing a variety of service and sales tasks

Banker—Teller—Customer Service

Proactive outreach to clients to drive branch traffic

Outbound prospecting activities, community and networking events

Innovation Creates Disruption

$131BTotal IT Budgets in Retail Banking in 2015, a 4% increase y-o-y

American Banker 2015

Opportunity within the Disruption

71%Consider their banking relationship to be transactional rather than relationship driven

Accenture 2015

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Branch Evolution to Digital

Branches remain critical to growing revenue

Client information and branch access is critical advantage for banks v Fintech that must be applied

Customer relationships are becoming more multi-faceted and complex

Banks must be able to apply analytics to capitalize and compete.

Customer Analytics

Sales + Service Analytics

Opportunity within the Disruption

Of Clientswant their bank to proactively recommend products and services to their financial needs.

51%

Accenture 2015

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Intelligent Client Outreach

Automate transactional, but closely measure and manage strategic client interactions

Reemergence of the telephone as strategic tool

All channels must be applied

Your clients are more sophisticated, demanding and more loyal

Big Data to Improve Bankers’ Outbound Calling

• Projecting outcomes subjective • Evaluate individuals based only on

outcomes • Bet on future performance based on

past results• Hiring, training, coaching difficult• Quantify missed opportunities• What actions improve retention

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The Importance of Branch-Optimized Service and Sales Activity

Call attempts Quantify Outreach

Call duration Appointment Setting

Frequency of contact Lead follow-through

Call results Cross-selling, customer satisfaction, branch traffic

Managing Branch Outreach ActivitiesChallenges

• Adherence to bank procedures and government regulation

• Lead follow-through• Reliable and accurate activity capture • Types of phones used

Consequences• Shrinking prospect pools• Limited management visibility• Training and retention• Quality of service

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True Branch Connectivity is the Real Disruption?

Internet and mobility enables unprecedented access to data, especially to branch models

Hiring and retaining high quality bankers

Performance + Data + Analytics = Improved Effectiveness

Using Big Data principles to understand and manage outreach is priority

Accurate Measurement of Effective Phone-Based Outreach?

Business Rules & Audit

Manual Activity Logs Actual Results

Visible

The distributed branch nature of Bank branches and Banker mobility makes it difficult to monitor phone-based outreach.

InvisiblePattern Recognition

Voice Conversations

Training Issues

Bad Practices

Poor Lead Mgmt.

Success Criteria

Inbound/Outbound Phone Communications

Banker

Client

Improved Effectiveness

$12MMClient-estimated monthly improvement in appointment setting leading to upsell or cross-sell conversions

Hiring, Onboarding and Training

50%Savings in time & cost of evaluating staff performance, universal banker conversion, likelihood of long-term success for acquisition personnel

Increased Customer Retention

4%Increased retention due to managing banker/client touchpoints at regular intervals. Build one-to-one relationships.

Practical Innovation for Customer Outreach

• Founded in 1885 in Belmont Mass.

• Motto: How Can We Help You?

• NASDAQ traded: BLMT

• Blended branch network – traditional brick

and mortar and in-store locations

• $1.9 Billion in assets

• 60+ Community Events Annually

• Q2 year over year earnings growth of 84%

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80% close rate on appointments

How to get clients and prospects in the branch-outbound prospecting and proactive outreach

Leveraging data and automation to manage to outcomes; create benchmarks and coach to activity

With mutual accountability of bankers and managers, overall boost in effectiveness and productivity

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Analytics is an Ocean…Start Small

Big Data must be applied practically and sparingly

Improperly applied, it is a liability and major distraction

Structured around measurable and meaningful activities of high-value tasks

Accuracy matters