Britannia Building Society by ube19723

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									         Case Study




Britannia
Building Society
“ Workflow within the FINEOS product set is very, very
  important because it works both at the back end but
  more importantly at the front end with our customers.
  It’s not just: take out your costs, take out the clutter,
  because most customers don’t see that. Workflow is
  useful for that but where we’re getting tremendous
  value is more at the customer-proposition side.”

 John Suffolk, Operations Director, Britannia Building Society
Turning digits into dollars
Britannia uses FINEOS to implement a loyalty scheme
and enhance customer service

Britannia is the second largest mutually owned building society in the UK
with over 2.1 million members and 3000 staff. It incorporates a head
office, call centres and 188 branches. Under intense pressure to de-
mutualise in the mid-1990s, Britannia polled its members and discovered
that the majority was against merger or conversion, feeling that they
risked losing service quality and convenience. To help sustain its
independent status and to differentiate itself in the marketplace,
Britannia developed a Members Loyalty Bonus Scheme (MLBS) that
rewarded its members by redistributing a share of the company’s profits.


THE MEMBERS LOYALTY BONUS SCHEME                       HOW CRM WORKS                                          MEASURABLE RESULTS

When the MLBS was initiated the quality of             Britannia’s administration systems (for mortgages,     The benefit of this CRM system for Britannia is
Britannia’s customer data was not good enough          savings, general insurance, life assurance and         improved customer service as well as greater
to make accurate bonus payments based on a             regulated investment) feed information into a          "focus" with its sales strategies. "We focus on
customer’s total product holdings. Nor was it good     data integration system which applies intelligence     recruiting more of the segments that we actually
enough to permit meaningful analysis such as           from its marketing datawarehouse and loads             want," says Crawshaw. "We have become much
customer segmentation, propensity-to-purchase          prompts into its front-end application for lead        more efficient. That’s in recruiting new customers,
modelling and customer-profitability modelling. To     delivery, response feedback and task                   cross selling to our existing customer base, and in
accomplish this, Britannia needed to build a           management.                                            terms of our retention activity."
customer registration database, integrate with its
legacy systems, and set up a helpdesk to advise        Powerful workflow automation is an integral part       The impact of Britannia’s "focus" has been
customers and clean up discrepancies.                  of this process, as Suffolk testifies: "Workflow       profound. The industry average for retail banks’
                                                       within the FINEOS product set is very, very            response rate on direct mail campaigns is,
The response from the MLBS means Britannia has         important because it works both at the back end        according to Gartner, a paltry 4%, Britannia does
been able to create a detailed customer database,      but more importantly at the front end with our         far better than that. Indeed, it has improved the
which is 97% data accurate. The integrity of this      customers. It’s not just: take out your costs, take    cost-income ratio of its direct marketing by 75%. It
data enables Britannia to better understand its        out the clutter, because most customers don’t see      has also doubled the number of customers it cross
customers and rank their individual profitability.     that. Workflow is useful for that but where we’re      sells to annually, and has increased the average
As John Suffolk, Operations Director, Britannia        getting tremendous value is more at the                product holdings per customer over its 2.1 million-
Building Society, says: "We know what products         customer-proposition side."                            plus member base by 15%, a figure that is rising
customers hold. We know what their tenure is. We                                                              year-on-year.
know what their likes and dislikes are. We know        In the background, Britannia’s marketing
what their propensity to buy is. We know what          datawarehouse handles the analysis,                    Having garnered a host of industry awards,
their profitability is. We know what channels they     segmentation, direct marketing, decision support,      Britannia is acknowledged as one of the most
like to use."                                          sales targeting and leads analysis, while the front    sophisticated exponents of CRM in financial
                                                       end orchestrates the execution of customer             services. In fact, independent auditors QCi rank it
Britannia measures customer value on three             service, prompts and, ultimately, cross sales.         in the Top 5% of its global CRM effectiveness table.
levels: length, breadth and depth, i.e. the size of                                                           The success of Britannia’s CRM practice has
the customer’s involvement (e.g. amount of             The result is that Britannia can target customers      encouraged it to undertake a £45 million core
mortgage), the number of products held and the         more effectively and satisfy their individual needs.   systems renewal programme that includes
tenure of the relationship. It also uses its data to   "The prompts that we give to our sales staff are       enhancement of the capability of its CRM
identify clusters of 10 segments, covering its main    geared toward trying to improve the profitability      environments to get a straight-through process.
customer demographics. This level of information       of the customers that we already hold and we sell      Britannia selected FINEOS, ahead of Siebel and AIT,
allows Britannia to understand its customers           to customers’ needs," explains David Crawshaw,         to enable the CRM and workflow elements of this
intimately, and interact with them more                CRM Manager, Britannia Building Society. "We           process.
intelligently.                                         know these individuals need these particular
                                                       products and we encourage our sales staff to
                                                       meet that customer need by having a product
                                                       conversation with them on a one-to-one basis."
“ Britannia now has a front-end customer system which in my view is ‘best of
  breed’. It really is a tool that most business operations managers would give
  their right arm for.”
 Martin Ladbrooke, CRM Project Manager, Britannia Building Society

    FEATURES                                                          BENEFITS

 • Single view of customer information                              • Improvement in cost-income ratio of direct
                                                                      marketing by 75%
 • Channel and contact management
                                                                    • Increase in number of customers cross-sold to
 • Integrated workflow for creation, routing and                      annually by 100%
   monitoring of sales prompts
                                                                    • Increase in average product holdings per
 • Customer segmentation, propensity-to-purchase                      customer by 15%, and rising year-on-year
   modelling and customer-profitability modelling




        Channels:                                   Head office, call centre, 188 branches, internet
                                                    with email gateway
        Number of users:                            2500
        Technology                                  IBM MQ Series, Java, Soap, JMS, Desktop and
                                                    Application server integration
        New administration
        systems’ integration:                       Lynx SUMMIT, SIM, SAM, and frontline systems
        Application platform:                       Windows NT application servers, Websphere and
                                                    Tomcat web servers, Oracle on Sun Solaris –
                                                    E10000 Edge servers
        Third-party software:                       FileNET Panagon capture & desktop, QAS, in-
                                                    house life quotations, web integration to admin
                                                    systems, outsourced fulfilment and centralised
                                                    printing




 For further information on          FINEOS Corporation (Ireland)           FINEOS Corporation (UK)
 FINEOS banking and insurance        T +353 1 639 9700                      T +44 1483 549 087
 enterprise solutions, visit us at
 www.FINEOS.com                      FINEOS Corporation (North America)     FINEOS Corporation (Benelux)
                                     Toll Free USA +1 (877) 893-7904        T +31(0) 30 285 5010
                                     Toll Free Canada +1 (877) 827-6485
                                                                            FINEOS Corporation (Nordic)
                                                                            T +45 3814 0060

								
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