Transforming to Compete in the Age of the “Always Addressable Consumer” — From Vision to Reality

Transforming to Compete in the Age of the “Always Addressable Consumer” — From

Vision to Reality

Presented by Michele Elrod, Executive Vice President, Head of Marketing, Regions

1,650 banking office in 16 states

$122 billion in assets

Member of S&P 500 Index

Ranked top 10% in loyalty - Gallup

22,000 associates

Michele Elrod, Executive Vice President

Watch this presentation in Merkle’s Performance Marketing for Financial Services

video series.

http://bit.ly/1MVizuk

The Opportunity Of Addressable Engagement

Regions’ Transformation How We Are Getting There

Organization and ApproachEnablementCreating the Customer Experience

Lessons Learned Along The Way

AgendaWatch this presentation in Merkle’s

Performance Marketing for Financial Services video series.


1st Party Data

2nd & 3rd Party Data

CRM Database

Today’s Funnel Expands the Reach of Addressability Throughout Nearly the Entire Consumer Experience

Unknown

High-value customer

Unknown

High-value customer

Low-value customer

The Addressable Mid FunnelSingular experience from

consideration through purchaseAwareness

Consideration

Intent

Shopping

Purchase

Lead

Desktop Phone Tablet TV


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Delivering These Experiences Requires Mastering the “3cs” of Addressability

CONTEXT

Everything weknow about the customer

Every asset we have to put in front of the

customer

CONTENTCONNECTIVITY

When we bringthe two together

in media and channels


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Orchestrating Interactions Becomes More Complex

Timing / frequency Platform

Device / format

Segment A

Segment C

Segment D

Segment Lifecycle

Awareness

Product Consideration

Request a Quote

Start Application

Process

CONTEXT

Message Offer

CONTENT

Treatment

Segment B

Brand Consideration

Segment B

Brand Consideration

4X

Google

Mobile A

1

Life

CONNECTIVITY


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This Impacts Capability and Operating Model

Over Investment

UnderInvestment

Operating Model

Cap

abili

ty M

atur

ity

Level 1

Level 2

Level 3

Level 4

Level 5Customer Value Optimization,

fully integrated programs and campaigns

Contact Optimization, multi-touch campaigns, integrated measurement

platform

Basic multi-channel, model integration, and campaign

automation

Single campaign, simple data, little offer and customer

customization

Infrastructure focus, basic capabilities


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The Opportunity Of Addressable EngagementRegions’ Transformation

How We Are Getting ThereOrganization and ApproachEnablementCreating the Customer Experience



video series.Agenda


Anticipate and address the needs of prospects and customers better than any

other bank


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Cross Channel Sales & Service Integration

Enabled by an automated technology platform that aggregates insights from transactions and

interactions to create, broker and disposition customized messaging, offers, guidance and

insights across all touch points.

Drive measurable business impact through

experiences that anticipate customers' and prospects’ needs

and preferences.


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Regions Bank knew a lot about how prospects and customers transact across channels…

BranchContact Center IVR Site

DigitalMedia Email

DirectMail Mobile

Social Media

What Was Working…

DDA ACLSMSP TSYSACAPS


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But a wealth of insights about how customers and prospects interact with us remain trapped within channel data silos

What Wasn’t…

BranchContact Center IVR Site

DigitalMedia Email

DirectMail Mobile

Social Media


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Site Behavi

or

FinancialGoals

Segment

Transactions Campaign

Response

ProductInquiries

Satisfaction& Loyalty

The Future State

Aggregated first-party data and automated decisioning drives enhanced customer interactions

Increased Context


video series.


Why We Are Moving Down This Path

Better Leads

Better Conversations

Better Sales & Retention

Improved customer

experience

Increased competitive advantage &


video series.


The Opportunity Of Addressable EngagementRegions’ Transformation How We Are Getting There




video series.Agenda


Organize Everyone Around Change

Executive sponsorship and governance team Change champions – CRM vision stewards – Organizational integrators

Program governance, value pro forma and business results

Customer engagement vision1

CRM capability and gap assessment2

Technology assessment3

CRM blueprint and roadmap 4

Time

New and revised

initiatives Culture and People Change Management

Data and Applications

Decision Process Change

Organizational Realignment

Existing initiatives for change

5


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Marketer’s View of the World


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Technologist’s View of the World


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Analyst’s View of the World


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Begin Planning Process as a Team to Drive Consensus

Joe

Cross-sell not

personalized

by segment

No retention incentive in

place

KarenCan’t complete online need to go to branchDave


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Program Timeline & Channel Rollout Overview

Near Term WinsConnect select channel interactions to improve lead & disposition timeliness and trigger follow-up communications based on behavior (e.g., browsing, inquiry, attrition risk)

Phase 1 Aggregate behavioral data across key touch points and enable targeted prospect and customer nurture programs across channels.

Phase 2 Integrate channels and mediato collect behavior and broker messaging in near real time.

Branch ContactCenter

IVR Site Digital Media

Email DirectMail

Mobile SocialMedia



Email DirectMail

Mobile SocialMedia



Email DirectMail

Mobile SocialMedia

2014

2015

2016


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video series.Agenda


Mar

ketin

g A

utom

atio

n

Addressable Marketing Enablement

Audience Platforms

Channel ExecutionMedia Execution

Application Services

Analytics & Insights Platform Data Management Platform (DMP) Decision Management Platform

Content Management

Identity Management

Marketing DatabaseCustomer PII Data Anonymous Data

Site Contact CenterMobileDirect Mail SearchSocial Display Email DTV ATMBranch


video series.


Enterprise Measurement

Cross Channel & Media Attribution

Audience and Insights

Analytics and Insights Platform


video series.






video series.Agenda


Not All Customers are Created Equal

Recognize and value me

Provide me with personal security

Reassure my decision

Make me feel in control

Expects Easy Money Management

ExpectsLow Fees

Expects Convenience

Expects Efficient Customer Service

Expects Friendly Customer Service

The Company Provides a Secure Environment

The Company Puts Me In Control

The CompanyHelps Me Save

The Company Provides a Secure Environment

The Company Makes Me Feel at Home

I Want To Be…Financially Secure

I Want to Have…Family Security

I Want To Be…Financially Independent

I Want to Have…Personal Security

I Want To Be…Valued & Appreciated

Peace of Mind Driven

Family Driven

Achievement Driven

Peace of MindDriven

Quality of Life Driven

SAVVY DIRECTOR

Help me reach financial security

DEVOTEDPROTECTOR

EMERGINGACHIEVER

EFFICIENTPLANNER

FRIENDLYNEIGHBOR

OPP

$2,300AVG.

CHECKING REVEN UE

$1 B

30%

Households:

15 MMRegions scored customers:

1.4 MMMedian distance to Regions

branch:

2.15 miles

Market Opportunity

COMPETITIVE BRAND PERCEPTIONS

77% Strength: Easy Dig ital ExperienceWeakness: Being focused on Customer

DEPOSITSChecking: 99% Sav ings: 72% Money Market: 13% CD: 12% Debit/Check Card: 84%Pre-Paid Card: 1%

115

BANKING SOLUTIONSSaf e Deposit Box: 13% Ov erdraf t Protection: 48% Check-Cashing Serv ices: 23% Direct Deposit: 70%

LOANS & LINES of CREDITCredit Card: 42% Home Equity : 7% Mortgage: 15% Auto Loan: 9% Student Loan: 0% Personal Loan: 5%

129

ONLINE BANKINGBill Pay : 79% Mobile Pay ments: 30% Pay Pal & other Pay ment Apps: 51% Person-to-Person Pay ments: 40%

ADVICE & GUIDANCEAGE Content: 47% Budget & Management Tools: 46% ID Thef t Protection or Credit Monitoring: 12% *Inv estment & Asset Management

Products: 6%

PRODUCTS AND SERVICES

34%Strength: Appreciating and Accommodating CustomersWeakness: None

Strength: Respectful of CustomersWeakness: Being a stable company

49%70%Strength: Being a Stable CompanyWeakness: None 53%

Strength: ConvenienceWeakness: Easy Digital Experience

Savvy Director

122

Common Preferred Channel Segment Preference

Learning About Account Apply ing f or Checking AccountFunding AccountReceiv e Welcome / Receipt of Account MaterialsSetup Online Banking and Bill PayCross Sell of Other Products

Face to FaceFace to FaceFace to FaceMailFace to FaceMail

—Phone (83)—Phone (63)Online (117)Face to Face (79)

BANKING INTERACTIONS BANKING RELATIONSHIPS

CHANNEL USAGE

ACCOUNT ACTIVITIES

3% 17% 24% 56%

<1 Year 1 – 4 Years 5 – 9 Years 10+ Years

TENURE

NET PROMOTER

4% 10% 86%

detractors passives promoters

Not likely to recommend

Likely torecommend

RELATIONSHIP QUALITY

Most customers are willing to write a good rev iew 55%

10095%

ATTITUDEMost customers intend to remain a customer

INTENT TO CONSOLIDATEProducts or services from one bank into primary bank

51%

INTENT TO OPENNEW ACCOUNT

= 69%98 100

Branch Call Branch

Mobile App Email Mail ATM/Kiosk

CHANNEL USAGE

Usage

Issue Resolution

Interest

82 86 101 93 95 93

90 102 101

51%

102

99

98

17% 12% 22% 9% 9% 22%

Online Banking

96


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Experience Mapping


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Experience Blueprint


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Empowering Our Bankers


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Lessons

Transformation takes time – phase your approach

Incorporate short-term wins in each phase to show value

Technology may be the easiest part

Process, skill sets, operating model, and organization may be

the hardest

Involve your channel partners early and often – integration is

imperative

Be firm in your vision but willing to adapt your plan

1

2

3

4

5

6


video series.


Watch this presentation in Merkle’s Performance Marketing for Financial Services video series

Get up to speed on how the industry's top-performing financial services brands are using addressable audience platforms to see great results with Real World Success with Performance Marketing. There are five presentations, each taking an in-depth look at how one brand celebrated huge wins:

• Video 1: Disruptive Marketing Trends in Financial Services

• Video 2: Transforming to Compete in the Age of the “Always Addressable Customer”—From vision to reality

• Video 3: Go Your Own Way: The many paths to addressable marketing

• Video 4: Turning Execution into Impact• Video 5: Institutionalizing the Addressable

Advantage



http://www2.merkleinc.com/l/47252/2015-11-18/2chzhz

The opinions expressed in the presentation are statements of the speaker’s opinion, are intended only for informational purposes, and are not formal opinions of, nor binding on Regions Bank, its parent

company, Regions Financial Corporation and their subsidiaries, and any representation to the contrary is expressly disclaimed.