2012 Bronze Best data strategy

Client Bank of Scotland

How did the campaign make a difference? A sophisticated ‘decision and optimisation’ model that calculates the next best offer for every individual customer significantly improved customer experience, speed to market, efficiency and ROI. This data strategy has cut costs, improved ROI and increased response rates by up to 50%.

What details of the strategy make this a winning entry? The use of a decision and optimisation model means that communications are truly customer focused and based on the likelihood to purchase as well as the profitability of the product. Characteristics such as a customer’s transactional history and demographic profile – as well as modelled data – are used to decide on the next best action. This action takes into account all previous interactions, the channels used and their outcomes. Trigger-based opportunities can be responded to quickly and effectively, reacting to what customers actually do at a moment's notice, supported by leading-edge statistical data modelling. This enables channels, products and previous customer contact to influence the optimum mix of message, offer and channel for each customer. It's streamlined, reduces the volume of communications and increases response rates by as much as 50%.

How did creativity bring the strategy to life? Communications were previously high volume, one-size-fits-all, which is expensive, inefficient and risks bombarding customers with irrelevant communications. So customer-initiated communications were the highest priority, then event-triggered communications, and finally modelled communications. Customers would never get more than two communications per month, all with unique creative work, with personalised headline, imagery, copy, sidebars and offers based on previous interactions. The final creative aspect was the development of a unique ‘DNA string’ for every customer: a code carrying all the information required to develop each communication. This transfers ownership for driving each customer journey to one central place, streamlining the process and ensuring that the most logical communications are prioritised for each customer.

Results First piloted with the Bank of Scotland brand, this model has meant all previous modelling duplication has been eradicated, channel usage has been better optimised, response rates have improved and the reduction in over-solicitation has led to more efficient use of internal resources.

Team Paul Handley, Petrina Redmond

Other contributors Rachael Dawson – Lloyds, Sue Coburn – Lloyds, Sergio Vieira – Lloyds, Ian Styler – Lloyds, Nick Hodges – Lloyds, Tangible – Strategic support