How Leto Bank is maximising customer cross-selling with marketing smarts

Russian bank's head of customer engagement management details how a marketing automation technology investment and data strategy is helping customise customer interactions

Launching a new bank is rarely an easy proposition, so why not do so with grand ambitions?

This has certainly been the intention behind Moscow-based Leto Bank. Launched in 2012 with consumer-oriented products including cash loans, point-of-sale credit, deposits and payments, the bank aims to a leading position across various segments of the Russian consumer lending market.

To achieve that goal, Leto Bank doesn’t just strive to sign up customers to individual products, but is making the most of each customer engagement through an enhanced cross-selling capability. And to drive this capability, it has turned to SAS and its Marketing Automation and Credit Scoring toolset.

According to Leto Bank’s head of customer relationship management, Pavel Tulubyev, working with SAS has enabled the bank to create a fully-integrated cross-sell program across multiple communication channels.

Speaking ahead of his appearance at ADMA’s Data Day event in Sydney, Tulubyev told CMO SAS has replaced processes that were mostly manual in nature.

“We work in a highly competitive market, where the cost of customer acquisition is very high and many organisations see that they can generate profit mostly from cross-sell and upsell processes,” he says.

“Based on our previous experience, we saw the necessity in having the best analytical CRM solution we could to maximise value from our fast-growing customer base. We needed a single ecosystem for marketing and risk management to give our loyal customers precise offers and the best service.”

The main business case for the technology investment was being able to entice customers of its point-of-sale credit product to take on other bank products, such as cash loans. Complicating the process, however, was the relatively low approval rate for many products for new customers.

“Therefore we had to prepare offers that were already approved under our risk policy,” Tulubyev says. “To build high-quality interactions between sales and risk is a big issue that we solved. Using a single risk management system for all kinds of application gives us a unique opportunity to manage such critical parameters for each customer.”

Highlighting the sophistication of Leto Bank’s program is the use of optimised segmentation and the creation of neuromarketing scripts for customer dialogue with highly-finessed communication tactics, including up to eight different communications with customers in any one campaign based on their propensity to buy.

Related: CMO interview: How Citibank is dishing up targeted customer engagement
How Bank of Montreal has achieved one-to-one customer engagement
How marketing automation, CRM upgrade is paying engagement dividends for ResMed

SAS marketing automation was implemented and integrated with communication channels in five months and Tulubyev claims the results have been impressive. Leto Bank has increased its cross-sell rate tenfold between 2013 and 2014, with resulting increases in sales of its cash product from 18 per cent to 25 per cent, and credit card sales growth from 4 per cent to 21 per cent.

“We have exceeded our business plans for existing customers more than two years in a row,” Tulubyev says. “In two years we passed from a zero customer base to 50 per cent share of sales to existing customers.”

He admits the bank has a long way to go if it is reach its ambitions. Tulubyev’s next priority is to shorten the period between customer actions that trigger an offer or communication. He’s also working to strengthen customer knowledge from external sources.

“The main lesson for me is that you always need to learn more about your customers to meet their needs,” Tulubyev says. “Always look back and measure their reaction to your actions. And of course, don’t try to improve everything in one step, in that case you won’t understand what really worked.”

CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

To DMP or not to DMP?

There are plenty of brands that can benefit from plugging into a data management platform. But should you engage an agency to run one or bring it in-house?

Ben Willee and Richard Taylor

Spinach Advertising

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

the systems that run these things are teachable just like a car, theres stuff still yet to come out to bring up the automation grade, b...

Magnus Robert Carl Wootton

Fear not: It's only a robot - Big data delivery - CMO Australia

Read more

Marin Software’s digital marketing solution as a short way of streamlining and finding a scalable solution...

Al Drazhev

How BizCover is boosting search advertising success

Read more

Latest Podcast

More podcasts

Sign in