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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Why efficiency and effectiveness are opposing forces in a marketing tug of war

I’ve been a long-time fan of renowned effectiveness experts, Peter Field and Les Binet, and their work. But while their approach is clearly important, the marketing leader’s challenge to deliver effectiveness more often lies in organisational structure. I see the bigger question being whether a marketing chief has a seat at the executive table, and the ear and respect of the CEO and company board.

Nickie Scriven

CEO, Zenith

Augmented Reality: What’s behind the marketing industry’s failure of imagination?

Every flagship smartphone in Australia includes hardware and software purpose-built for AR. A huge audience is ready and waiting. We have an opportunity to craft extraordinary, innovative work. But to get there, we need to push our creative thinking a little harder, writes Gil Fewster.

Gil Fewster

Creative technologist, The Royals

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

Why it's important for me to know that? I don't get it, sorry.

James Fogle

7 things you need to know about Facebook's mood experiment

Read more

Info graphic have proven to be very useful to create brand awareness and drive traffic. Thanks for sharing these Information.Graphic Desi...

Govind Dadhich

Image intelligence:10 must-see infographics for marketers

Read more

Best web hosting packages Vancouver WA understands that only technical support and domain associated email address can bring huge leads ...

Radiata Solutions

6 Ways to ramp up Social Media to Your Web Design

Read more

I had the same vision about change from CX terminology to HX. Even with almost the same title: 'Forget customer experience...' https://ww...

Ekaterina Khramkova

Forget customer experience, human experience is marketing's next frontier

Read more

Thank you, so do I.

David Freeman

Sustainability of message: H2coco founder's commitment to consumers

Read more

Latest Podcast

More podcasts

Sign in