Perspective
Campaign Management in banking sector: with reference to HDFC Bank
by Sujeet Kumar
Ex-Campaign developer, HDFC Bank, Mumbai
HDFC bank is one of the leading private sector banks of India, having a wide network of 535 branches across 228 cities and over 9 million customers. HDFC bank is on continuous growth with respect to its customer base. This bank is adding 100,000 customers per month with the annual growth rate of 30 %. HDFC Bank provides a complete range of account and services like Liabilities, Assets, Cards, Direct Banking and other products such as Bill Pay and Advisory Services.
With increasing number of customers the main challenge with HDFC bank was to leverage customer knowledge to enhance targeting time of right-time communication, to boost customer retention and to support growing communication with the same resources. HDFC bank handles these issues with campaign management. The campaign management provides the way to communicate with customers effectively and efficiently. For this purpose of Campaign management HDFC bank used a tool called AFFINIUM. Affinium is a product of Unica Corporation. This software tool is a market automation tool which is used to design, optimize, execute and analyze its marketing programs, capturing a complete view of customers across channels. The customers can be targeted through three available channels; they are SMS, E-mail and telecalling. If the customers have valid email id then he will be communicated through E-mail, if he has valid mobile number then he will be communicated through SMS otherwise he will be communicated through tele-calling.
The whole campaign management process is divided into three verticals. They are credit cards, assets and liabilities. These campaigning processes are rolled out based upon the database of the customers. The databases are present in table form in data warehouse which are directly linked to the live database of the HDFC bank. In the campaigning process different teams are involved some of them are campaign managers, campaign developers, MIS team members, modelers. The campaign is rolled out successfully with the co-ordination of these teams. The campaign manager provides a written document called approach note, which contains all the information regarding campaign, like what type of customers to be targeted, what will be the channel of communication, what will be status of customer based upon the type of campaigns. The campaign developer works with Affinium and prepared flow chat based upon the conditions provided in the approach note in order to get the desired base of customers. From these base the modelers provides the count of the customer which are not supposed to be targeted they are called control and the rest of the customers are targeted they are called test. This is done for the purpose of studying the behavior of customers, like to study if a particular segment of customer is not communicated and a another segment is communicated then what are the change in the spending behavior of the customers. If targeted segment spend more than that indicated the campaign is successful. These all behavioral tracking is done by MIS team. Some of the campaigns which are running in the bank are activity based campaigns, birthday campaigns, proactive retention campaigns, Special campaigns, activation campaigns etc.
With this process of campaigning HDFC bank is able to boost the incremental customer retention by 4 % and achieved incremental activation rate of 30 % .Also it reduced acquisition costs by 60 % in campaigns with increment of campaigns volume by 200 % in six months.
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