CRM in consumer banking.PPT

CRMinconsumerbanking Dr YanningZhang 海量资料免费下载 CRMOverviewBankCRMfeaturesAnalyticCRMProcessOLAP ModelingandDataMiningDecisionstrategiesConclusion Outline CRM CustomerRelationshipManagement isallaboutunifiedviewofeachcustomer CRMOverview Products Channel Treatments Customer CRMMarketisstillfastgrowing evenwhenoverallmarketisslowingdown ProjectedCRMmarketwillbeover 10Billionin2003 from 3 3Billiononlyin1999 E commence CRMOverview CRMconceptisnotanewone butitbecameahottopicinlast5yearsAcceleratedconsolidationinbankingindustryRecentmajormergersexpandedcustomerbaseMoreproductsavailabletoconsumersTechnologyallowseasiercollectionandaccessofcustomerdataChinamarketfromERPtoCRM CRMOverview CRMOverviewBankCRMfeaturesAnalyticCRMProcessOLAP ModelingandDataMiningDecisionstrategiesConclusion Outline BankCRMCharacteristics BankingisextensiveAlmosteveryfamilyhasabankaccountBankdataisdataintensiveBankdataissensitiveandproprietaryBankdataismulti dimensionalBankindustryishighlyregulated PersonalizedtechnologiescantailormessagetoindividualcustomerCollectdataasmuchaspossiblefromvariouschannels CRMStartingpoint unifiedcustomerview Bank TelephoneBanking ATM Kiosk PersonalBanker OnlineBanking In branchTeller BankCustomerLifeCycle TargetCustomer NewCustomer InitialCustomer HighPotential HighValue LowValue InvoluntaryChargeoff VoluntaryPayoff ProspectPrescreen Underwriting BankCustomerLifeCycle TargetCustomer NewCustomer InitialCustomer HighPotential HighValue LowValue InvoluntaryChargeoff VoluntaryPayoff ProspectPrescreen Underwriting BureaudataDemographicdataCensusdata ApplicationdataPricingdataAccountactivationdata BehaviordataMonitoringbureaudata Collectiondata DataCollectedandAnalyzedAlongtheLifeCycle CRMOverviewBankCRMfeaturesAnalyticCRMProcessOLAP ModelingandDataMiningDecisionstrategiesConclusion Outline TwotypesofCRMFront endcustomerexperience OperationalCRMBack endcustomerunderstanding AnalyticCRM TwoTypesofCRM AnalyticCRM OperationalCRM Customer AnalyticCRM Brainofcustomermanagement CharacteristicsofAnalyticCRMExtensivedatacapturing processinganddatasourcelinkingIn depthanalysisandmodelingIntegrationwithoperationalCRMsystem AnalyticCRMprocessisaniterativeprocess 73 U S companiesclaimcollectinginformationaboutindividualsDatacollectionisonlythefirststep Importanttoagreeonwhytocollect sincedifferentpartofcompanieshavedifferentmotivationofcollectinginformation AnalyticCRM DataProcess Bankdatawarehouse thebasicbuildingblock AnalyticCRM DataProcess DW DataIntegrationDatawarehouseisthecentralplacetohave360degreeviewofcustomersCommonmistakesindatawarehouseLackoflongtermvisionNocommunicationbetweendepartmentsLackofcooperation only37 sharedatawithotherdivisionsNosufficientqualitycontrolConflictdataentrypointtocreateunnecessaryconflictNosufficientdocumentationfordataelements especiallyformissingvalues AnalyticCRM Analysis CompaniesneedtoagreeuponthemeasurementofsuccessBanksuccessmeasurements CampaignresponserateAnnualizedlossesROA ReturnonAssets ROE ReturnonEquity orROI ReturnonInvestment AnalyticCRM Metrics CRMOverviewBankCRMfeaturesAnalyticCRMProcessOLAP ModelingandDataMiningDecisionstrategiesConclusion Outline KeycomponentsofCRManalysis AnalyticCRM In depthAnalysis DataSummaryisthefoundationInmanycases datasummaryis 70 oftheworkCommonissuesConfirmthedataqualityVerifymissingvaluesCheckvariablecodingContinuousvariablecodingMissingvaluesSpecialvaluesDiscretevariablecodingAvoidmis intepretnumericvaluesBlankmayhavespecialmeaning AnalyticCRM Analysis DataSummary Dataexplorationiscanbeextensive inmanycases thereareover1000variablestoexploreOLAP OnlineAnalyticProcessing isoftenusedinvariableexplorationCustomerprofilingisamustTherearemanystatisticalmeasurestodealwithunivariateanalysisMean Average VarianceorStandardDeviationMediumKurtosisEtc Inmanycases variabletransformationisnecessary AnalyticCRM Analysis OLAPandVariableExploration Commonvariableshapes AnalyticCRM Analysis VariableExploration Normal S Shape Linear ExponentialDecreasing Convex increasing Skewednormal AnalyticCRM Analysis Modeling Conceptofmodeling mimicthefuturebypastdata Usethedataavailableandfindpatternsfromthepastandthenapplythepatternsinthemodel Past Present Future PastDataBegins PastDataEnds PerformancePeriodStarts PerformancePeriodEnds PerformancePeriod PredictivePeriod AnalyticCRM Analysis Modeling ModelingStages PerformanceDefinition DataCollection Sampling UnivariateAnalysis Modeling ModelValidation ModelImplementaion AnalyticCRM Analysis Modeling PerformancedefinitionNeedtoconsiderproperexclusionsPerformancemeasuresiswhatoneneedstopredictPerformancedefinitionneedstobecloselytiedinwithbusinessobjectivesConsensusamongallplayersSamplingBankindustryisdatarich however inmanycases thesamplesindifferentperformanceisunbalancesExamples respondersinmarketingmodel badsincreditriskmodelStratifiedsamplingisasolutionforunbalancedsamplesUnivariateAnalysisUseinformationvaluetheorytoexploredataSegmentation populationsplitInmanycasesthearedifferentpatternswithinsubpopulationwhichwilldecreasetheoverallmodelvalue AnalyticCRM Analysis Modeling TherearemanystatisticaltoolstodevelopmodelsLogisticregressionDecisionTreesNeuralNetworkGeneticAlgorithmThereisnouniversally best methodology DifferentmethodwilltailortocertainapplicationsFraudmodelingCreditmodelingMarketresponsemodelingConsiderationstomakedesicion AnalyticCRM Analysis Modeling ModelingTechnique DecisionTrees Good Bad Determine good or bad byaskingseriesofquestions YorN CARSorCHAID AnalyticCRM Analysis Modeling ModelingTechnique NeuralNetwork Inputs Neuralnetworksarebasedonlooselycomputermodelsofhowhumanbrainswork Mayhavemanylayers whichisequivalenttovariousmathematicalfunctionsInmanyways similartologisticregression HiddenLayers Output Neurons AnalyticCRM Analysis Modeling ModelStrengthMeasuresInformationValueIV good bad log good bad Divergence continuousformofInformationValue AnalyticCRM Analysis Modeling ModelStrengthMeasuresKolmogorov SmirnovStatisticKS max cumu ofgood cumu ofbad Allthemodelstrengthindicatorsarepositivelycorrelated AnalyticCRM Analysis Modeling Predictivestrengthisnoteverything Otherconsiderationshavetobetakenseriously Model Stability Palatability LegalCompliance Implemen tation PredictiveStrength AnalyticCRM Analysis Modeling CautionsinmodelingOverfitting modelingismuchmorethanjustmathematicalproblem thebestmathematicalmodelmaycollapsebecauseofoverfitting ModelComplexity DevelopmentData ValidationData Becauseofoverfitting themodelperformspoorlyonvalidationdata AnalyticCRM Analysis Modeling ModelValidationValidationisanassuranceofvalidityofthemodelTwobasicformsofvalidationOut of timevalidationTypicallyselectdatafromanewperiodafterthedevelopmentMostdesirablewayforthevalidationMaynotalwayspossibleIn the timevalidationWhenOut of timevalidationisnotfeasibleManyvariations Holdoffsample 20 to50 JackknifeCross validationBootstrap AnalyticCRM Analysis Modeling ModelImplementaionModelspecification makesureoperationswillunderstandthemodelImplementationscheduleIntegrationwithoperationalCRMUnifiedapproach communicationiscritical AnalyticCRM Analysis DataMining Dataminingisaprocessofexplorationandanalysislargequantitiesofdatainordertodiscovermeaningfulpatterns DataminingactivitiesClassificationEstimationPredictionClusteringDescriptiveandvisulizationDataminingisfeasible thankstothecomputertechnologyadvance CRMOverviewBankCRMfeaturesAnalyticCRMProcessOLAP ModelingandDataMiningDecisionstrategiesConclusion Outline AnalyticCRM Analysis DecisionSupport AlltheCRMtoolsservethepurposeofenhancemanagementdecisionsDecisionstrategyutilizesanalyticCRMresultstooptimizebusinessdecisions AnalyticCRM Analysis ModelingCaseStudy PortfoliosummaryBankofSanFranciscoCreditCardProgramstarted6yearsago950 000accountswithtotalbalanceof 5 342 000inoutstandingreceivableRecentlycharge offrateishigh Annualizedcharge offrateis6 3 Bankdeterminestotightenpolicybasedonnewmodel AnalyticCRM Analysis Modeling PerformancedefinitionUsing12monthsperformanceExclusions Past Present 10 960Bads 8 BadRate 137 500Goods 4 1998 4 2000 5 2000 5 2001 PerformancePeriod PredictivePeriod AnalyticCRM Analysis Modeling UnivariateAnalysisUsefulvariablesAccountdataApplicationdataBureaudataTransactionaldataT