Contact Center Solutions Featured Article

Banks Deploying IBM SPSS Predictive Analytics Software to Mitigate Risk

February 12, 2010

SPSS, an IBM company, has announced that banks worldwide are adopting IBM SPSS predictive analytics software to mitigate risk and grow their business via more focused direct marketing campaigns and retention strategies.

The company said that banks such as First Tennessee, Rabobank Nederland and S&T Bank, have integrated IBM SPSS predictive analytics into the entire marketing process to better align with their valuable customers and gain deep understanding of client behavior.
Thanks to the deployment of IBM SPSS predictive analytics software, these banks have seen “significant” improvements in the marketing campaigns and overall business performance, said company officials.
In the banking industry, one of the biggest challenges is the ability to target the right customer at the right time. Using IBM SPSS predictive analytics, the banks are able to elevate direct-marketing efforts in order to target the right customers at the right time and through the right communication channel, said company officials.
Memphis-based First Tennessee Bank, a subsidiary of First Horizon National Corp., selected IBM SPSS predictive analytics to increase the overall return on investment on its cross-sell campaigns by more than 600 percent in six months.
With the help of IBM SPSS predictive analytics, the organization builds propensity models that identify its highest performing customer segments and creates monthly marketing campaigns around them. Bank officials said that this leads to decreased costs of their direct response campaigns.
“IBM SPSS predictive analytics is enabling First Tennessee Bank to gain an unprecedented level of insight from our data, making our marketing campaigns more efficient, and improving our returns and the way we reach clients,” said Tanner Mueller, database marketing team manager at First Tennessee Bank.
Rabobank Nederland said that it’s deploying IBM SPSS predictive analytics to generate qualified leads and higher marketing returns through improved campaigns. Using IBM SPSS predictive analytics, banks are able to focus marketing programs on the prospects most likely to respond to new products or services. Bank officials said that it minimizes costs by predicting which marketing programs will generate the highest responses by not spending marketing budgets on the wrong targets.
The bank success is based on “our co-operative structure, increased customer focus, organizational commitment to CRM and investments in supporting technology, such as IBM SPSS predictive analytics software, which deliver true ROI,” said Paul Groenland, manager of the marketing intelligence department at Raboban.
S&T Bank is using IBM SPSS predictive analytics to improve its direct marketing efforts for customer acquisition campaigns.
“IBM SPSS predictive analytics enables our organization to identify customer needs, send targeted and focused campaigns and amplify our overall approach to customer marketing,” said Rob Jorgenson, senior vice president of marketing at S&T Bank.

Anshu Shrivastava is a contributing editor for ContactCenterSolutions. To read more of Anshu’s articles, please visit her columnist page.

Edited by Marisa Torrieri