Teradata Corporation (NYSE: TDC), the world's largest company solely focused on data warehousing and enterprise analytics, today announced that Industrial Bank Co., Ltd. has selected the Teradata Relationship Manager (TRM) software portfolio for event-based marketing (EBM).
As the first of its kind in China's banking industry, the EBM pilot project of Industrial Bank Co., Ltd. has passed through the proof-of-concept stage and is now being used successfully in closed-loop marketing campaigns. The Teradata software facilitates integrated marketing across channels for more effective customer interaction.
"Thanks to Teradata's rich experience in event based marketing, our pilot with the data warehousing system achieved the required goals, effectively integrating our e-banking and branches as well as obtaining detailed data for EBM analysis, implementation and execution," said a bank spokesperson. "The project created positive business results and innovated our marketing approach, laying a solid foundation for further promoting of EBM across the bank."
Teradata's event-based marketing software identifies customers who may be in decision mode with regard to a financial product or service, and alerts bank agents so they may act on the opportunity. When the agents can interact on a more knowledgeable and personal level with customers, the customer's perception of the bank improves, its campaign marketing costs decrease, and its revenues increase.
Among China's first joint-stock commercial banks, Industrial Bank Co., Ltd. has now opened 41 branches and over 470 sub-branches in major domestic cities with more than 10 million retail banking customers. In 2006, the bank adopted the Teradata solution to establish its information management and data warehousing infrastructure. However, it was still in need of an integrated marketing campaign management system to pool many data sources for analysis, and communicate consistently across multiple customer channels such as e-banking and branches.
For the pilot, the bank launched TRM event-based marketing projects in the Guangzhou branch and the Shenzhen branch. The pilot project provided good return on investment (ROI), achieving a strong marketing response rate of 20 ppercent during the first month with the call centre and e-banking department. The Shenzhen branch account managers combined achieved new deposits of about RMB 430 million (US$ 62.9 million) and generated new loans of nearly RMB 480 million (US$ 70.2 million). Among all the events, the marketing success rate of "significant deposit" contacts ranked the highest, up to 31 percent, bringing in new deposits of about RMB 240 million (US$ 35.1 million) and new loans of about RMB 420 million (US$ 61.5 million). The bank expects the EBM program to soon support all of its retail banking customers, better leverage the channels and better exploit the business value of the data warehouse.
"Customer growth and complex business needs drive us to develop data warehousing applications at many different levels," said Simon Yang, vice president of Teradata in the Greater China area. "With years of experience in leading global financial organisations, we worked with Industrial Bank to launch the first EBM pilot project in China's banking industry. Different from traditional marketing, the project takes individual customers' actual needs into consideration and engages customers with integrated marketing services. These are enabled by closed-loop marketing campaign systems, e-banking, branch account managers and supported by the Teradata system. This data warehouse provides objective evaluations of marketing results while establishing a sustainable, quantifiable customer marketing model, and has played a significant role in driving the development of the bank's marketing strategies."