Dmitry Kuzyakin,
vice-president, head of CRM and research at VTB24, the retail arm
of VTB Bank, speaks to Meghna Mukerjee at the Teradata PARTNERS
User Group Conference & Expo in San Diego about VTB24’s CRM
ATMs campaigns, and its plans to become more customer-centric in
its product offerings
Go deeper with GlobalData
For VTB24, the retail arm of Russia’s
second-largest lender by assets VTB, customer loyalty is a
challenge in the Russian retail market.
With the “economy growing fast, salaries
getting higher, and lifestyle of customers becoming different,
analysing data constantly and smartly is essential” for VTB24 to
retain old customers and gain new ones, believes Dmitry Kuzyakin,
vice-president, head of CRM and research department, VTB24.
Communication with customers is of utmost
importance in building loyalty, feels Kuzyakin and VTB24 is focusing on ATMs as a major communication and
sales channel.
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By GlobalDataVTB24 adopted Teradata solutions in 2009 that
has allowed the integration of ATMs network
architecture with the customers’ communication network that include
VTB24’s communication campaigns for existing customers as well as
campaigns for the customers of other banks.
Through the
customer relationship management (CRM) ATM
campaigns performed on the Teradata TRM and channel integrator,
VTB24 has been analysing what the customer’s financial
patters and needs are, what offers would work for him, and what
would make him shift his main bank account to VTB24.
“When customers of competition banks use our
ATMs, for instance, we make a personalised communication to them so
that they consider a bank account switch. We make propositions for
our own customers too that we feel can be relevant to them,” says
Kuzyakin.
VTB24 operates over 1100 ATMs with CRM
functionality, including direct communication, and the network is
rising.
In mid-2010, VTB24 began a revamp of
its ATMs, becoming one of Russia’s first banks to use ATMs for
direct user communication.
Feedback from the customer is received
through the ATMs, including surveys.
After the customer enters his PIN, he
finds a greeting by name and a personal offer selected by VTB24 on
the ATM screen. If the customer expresses interest in the offer, he
or he can learn more about it. VTB24 has over 2 different personal
offers for ATMs.
The pilot CRM ATM campaign had
thousands of customers participating. Over time, customers have
received various personalised offers for cash loans, auto loans and
credit card, including pre-approval loan decisions.
“Now, for example, we get a positive response
from approximately 2% of the 5% customers we provide personalised
communication to, which is good,” says Kuzyakin.
Teradata solutions make managing these
campaigns easy, explains Kuzyakin.
“The communication between and customer and
the bank is complex. It enable the use of multi-step campaigns to
integrate call centres, m-banking, and web.”
With the aim of calculating risks for
retail customers accurately, VTB24 has adopted Teradata analytical
solutions so that the lender “knows how we can give our customers
low interest rates”.
Making the right offer is crucial, as
VTB24 feels its biggest competition Sberbank – Russia’s largest
lender – has a few advantages.
“Sberbank gets a lot of government
support on the products they offer – especially on their pension
plans. The number of customers they have is massive,” says
Kuzyakin.
VTB24 already has an online banking
network with Telebank and Teleinfo Systems. A m-banking app, which
is in its testing stages, will be launched soon, informs Kuzyakin,
adding, “Russia is ready for mobile apps”.
On 15 July, VTB signed a deal with
Russian Railways to acquire shares in TransCreditBank to boost
VTB’s market penetration in mortgage lending segment and ATM
distribution network. VTB aims to be present at every station along
the Russian rail network within the “next year or two”.
