KB Card Charges Ahead with Marketing Innovation
Real-time campaigns, improved customer experience, minimized dependency on IT
"Since 2000, the credit card industry in South Korea has grown rapidly," says Jaehoon Park, head of the company's Big Data Strategy Center. "Credit card charges total almost 80% of family expenditures, with transactions of less than $9 dollars accounting for 42% of charges. A credit card is used to buy even a can of soda at the convenience store! With 22 credit card companies, there's limitless competition.
"Our goals are customer satisfaction and customer experience, but our campaign system was limited. We sent offers via text message to customer groups selected from our database—but these offers weren't necessarily appropriate; they were far from customized. As offers were reused, they were likely to be seen as spam. This system was damaging our reputation, so we began to think about how we could reach the right customer, at the right time.
"Of course, every card company is trying to innovate and differentiate, but it's really easy to be copied. When a new card or service is developed, it takes at most three years for any competitor to catch up. But, because differentiation based on technology and process innovation is harder to duplicate, we decided to make an attempt.
"We set three marketing goals: Right time, right person, right offer; Personalized offers based on customer behavior derived from big data; and Advanced analytics with visualization of data assets. We needed real-time marketing technology. Fortunately, TIBCO's solution was the closest to our requirements.
"With TIBCO's Korea team, we conducted three projects beginning in June 2013 to establish a strong marketing platform that analyzes customer card transaction data and sends optimal offers in real time. The first project established data visualization, after which we could run approximately 130 campaign scenarios simultaneously. The second project provided further upgrades for running more campaign scenarios without hardware extensions. And the third project used Machine Learning to automate scenarios and create personalized algorithms and models.
"With our Smart Offering System, we can analyze customer historical data using TIBCO Spotfire® analytics, and we can send personalized offers to customers using TIBCO BusinessEvents® event processing.
Vastly Improved Marketing
"Generally, Korean credit card companies perform just 30 kinds of campaign scenarios. This means that millions of customers are classified into only 30 segments for marketing purposes. We aimed at establishing 50 scenarios. When the project was nearing its end, we were performing as many as 150 scenarios, and today we are performing 300 scenarios simultaneously.
"We can analyze for when customers use their card, where they use it, and why—all in real time—and act on that information, also in real time. This is based on technical innovation. We are at least five years ahead of our competitors in marketing skills.
Minimized Dependency on IT
"One of the most important advantages of our system is that it minimizes dependency on IT. It enables marketers to design campaigns directly using drag-and-drop—and realize everything they imagined. We succeeded in establishing a solution that can maximize our creativity while minimizing program coding.
Real-Time Campaign Monitoring
"Marketing needs to know how customers react to a campaign. In the past, they could view results after a few days, but now, they can see results almost in real time. Various analyses, such as commercial geography, administrative district, hierarchical analysis, and age-specific analysis, are available through self-service. Naturally, marketers’satisfaction and efficiency have risen dramatically.
Better Customer Experience, Increased Sales
"Our system is providing a new experience for our customers. It led to improved customer satisfaction and increased the customer credit card bill. In fact, last year we saw increased sales of about 600 million US dollars. I cannot say the entire sum was due solely to this system, however, with new marketing campaigns, new strategies, and new technologies, it was obviously a big help.
"Today, we can see and monitor campaign results in real time, and we can analyze customer data. We have a true real-time marketing platform that other competitors cannot imitate easily. Of course, we are trying to make best use of our system. We are focusing on the right person at the right time. And, using our statistical solutions, we will keep moving toward our goal: customer satisfaction and customer experience."