Customer Analytics & Insights Solution

Avanade Banking Industry

April 2016

Becoming an Indispensable Partner to Your

Customers Through Greater Personalization

©2016 Avanade Inc. All Rights Reserved.

Avanade in Banking

Over 3,000 Avanade professionals

with financial industry skills

Over 27,000 Avanade professionals in

70+ locations across 20+ countries

300+ financial services customers

7 of the top 10 largest banks

worldwide

Created in 2000 by Accenture and Microsoft,

Avanade brings together the best of the

companies, uniting Accenture’s consulting,

business and industry acumen with Microsoft’s

enterprise-class software to bring innovative

digital solutions to banks.

SAMPLE OF OUR BANKING CUSTOMERS

©2016 Avanade Inc. All Rights Reserved.

A history of realizing results with analytics in financial services

40%increase for

Life product revenues

Financial service provider needed to

help its sales team better understand

customer needs. Avanade helped deliver

actionable insights into campaigns,

strategy, and customer relationships:

• Single Customer View

• Data Warehouse

• Customer Relationship Management Platform

Provider now has improved visibility,

campaign and contact management,

customer tracking, and operational

reporting – resulting in increased

revenue.

30%increase for

General products

©2016 Avanade Inc. All Rights Reserved.

Shifting customer behavior and attitudes are accelerating change for banks

Personalized Care“I want my bank to give me

the answers to my needs.”

Omni-Channel“I expect my bank to engage

with me where I spend time.”

Switching Economy“I am willing to try

banking alternatives.“

51%want their bank to proactively

recommend products and

services for their financial needs

72%of millennials would be likely to bank

with non-financial services company

with which they do business with.

71%consider their banking

relationship to be transactional

rather than relationship driven

Source: Accenture Research

©2016 Avanade Inc. All Rights Reserved.

As a result, banks are at a cross-roads in supporting their customers

Banks risk becoming a utility-like provider, which can inhibit growth.

Banks can power new growth by becoming an indispensable partner to their customers.

Become a “utility”

Be present as all needs arise and offer a complete

solution centered on life needs

Continuous daily interaction

Opportunity to “increase share of wallet” thanks to a clear

and compelling service differentiation

Leverage ecosystem of partners to broaden offers

(corporates, retailers,…)

Focus on satisfying specific financial needs

Sporadic interaction

Pressure towards price reduction

“Bounded” bank

Become an “Indispensable Partner”

©2016 Avanade Inc. All Rights Reserved.

Becoming an indispensable partner means embracing a customer centric dialog

Reduced effort to build analytic models

Accurate next-best-action activities

Omni-channel orchestration

From Product Centric & Single Channel Dialog

Uncoordinated

Prepared Bank Associate

To a Customer Centric & Omni-Channel Dialog

Coordinated, Relevant and Timely Personalization

15-25%Lift in cross-selling

efficiency

Benefits of

Personalization

Customers

• Seamless experiences – one bank!

• Proactive and accurate support of customer needs and wants

• Increase relevancy and value to your customers

• Fragmented experiences

• Difficulty for customers to get at what they want and need

• Decreasing relevancy to customer

Customers Confused Bank Associate

A coordinated customer-centric dialog helps banks deliver greater customer personalization during any

interaction across any channel.

5-15%Improvement in

customer satisfaction

Individual Experiences One Bank Experience

©2016 Avanade Inc. All Rights Reserved.

The path forward to more personalization is next best action!

BUSINESS

BENEFITS

Increase

Share of Wallet

Increase

Customer Loyalty

Decrease

Cost of Service

STRATEGIES FOR NEXT BEST ACTION

Get Your Data Right!

Aggregate customer

data from all channels &

optimize for analysis!

Next Best Action for BanksThe capability to present offers and actions, personalized to customer history and predicted behavior,

consistently across any channel and customer interaction!

Turn Insight Into Action

Predict behavior & needs based

on history to make proactive

action recommendations.Enable Across Channels

Present and use next best

actions in any interaction

through any channel.

Hi

Kathy!!

©2016 Avanade Inc. All Rights Reserved.

Combines online and offline customer data with

machine-learning-based predictive analytics to

enable next best actions that deliver the

personalization to delight your customers.

Avanade Customer Analytics & Insights Solution (ACAI)

Banking and analytics expertise

and insight for design of ACAI.

Enabling enterprise technology

for the foundation of ACAI.

ACAI design, development,

integration, & support.

©2016 Avanade Inc. All Rights Reserved.

ACAI is focused on helping banks become indispensable partners

Turns data into insight…

ACAI assembles data from all customer history

and transactions across channels using a

customer analytics record to provide a complete

customer view.

Suggests next best action based on insights…

ACAI applies insights to predictive models (using machine

learning) to suggest next best actions for a customer.

Makes actions “actionable” across channels.

ACAI integrates next best actions with marketing

campaigns and presents next best actions for use

by all channels including customer care and online

customer self-service.

What ACAI Does:

Leverage comprehensive customer view

Improved customer segmentation

How ACAI Helps:

Enhanced personalization & advice

Consistency of experience across channels

?

i

©2016 Avanade Inc. All Rights Reserved.

ACAI delivers the capabilities needed to enable next best action

Analytical data model for

gathering and optimizing

customer data. Contains

more than 6K variables

specific to the Financial

Services industry.

An Accenture patent!

Predictive models, using

machine learning,

calculate propensity for

churn, cross-sell,

acquisition, customer

satisfaction, data quality

Rules enabling marketers

to define actions,

audience and priorities

across inbound and

outbound channels.

Customer

Analytic Record

Predictive

Models

Next Best

Action Rules

ACAI Services: Discovery DesignImplementation

& Integration

Managed

Services

Avanade Customer Analytics & Insights Solution (ACAI) Components:

Next Best Action

Matrix & APIDistribution and

Channel Systems

This high performance layer enables the performance execution of action. Matrix is a database of relevant actions for each customer while the API communicates how to render actions.

Supports presentation and execution of next best actions across any distribution, branch, sales or other channel involved in inbound or outbound customer interactions.

©2016 Avanade Inc. All Rights Reserved.

The ACAI Difference

Solution Expertise Financial Services Fit Sound Approach

Analytics

Consultants

Data Scientist

Developers

CRM

Consultants

Purpose-built for the

financial services industry

including patented

financial services analytics

record.

Developed from joint

Accenture-Avanade-

Microsoft banking project

experience.

Continuous research and

innovation in fintech &

analytics keeps ahead of

market.

User-focused design

simplifies the specification

and execution of next

best actions to improve

time to market.

Modular design considers

the integration an process

needed to “fit” the solution

with existing environments.

Uses the latest Microsoft

technologies to make

solution relevant and

valuable today and well

into the future.

3400

900+

1000+

©2016 Avanade Inc. All Rights Reserved.

ACAI can help you delight your customers!

“With the right customer strategy and level of commitment, banks in

developed markets stand to double their annual revenue growth rates

and lower their costs to serve by more than 20 percent”

Accenture Research

ACAI is designed to help you:

• Engage with customers on what

matters most to them

• Proactively advise them on actions to

improve financial health

• Personalize recommends across any

interaction and any channel

©2016 Avanade Inc. All Rights Reserved.

Your journey to the becoming an indispensable partner starts today!

"We’ve seen dramatic increases in our response rates with this

new platform. We can now more readily segment our customer

base, which enables us to grow our market share without

increasing costs.”

Rune Hoff, Director, SpareBank 1

How to engage with us:

• Discovery Session: Let us dig deeper on ACAI.

• Innovation Day: Learn the art of the possible.

• Proof of Concept: Let us show what we can do.

www.avanade.com/industry/banking