How BA Benefits Citibank At Citibank, we are driven by three key focus– preference, engagement, and potential of our customers, as illustrated in Fig. 1. Understanding these key focus allows us to provide customers with the relevant products or services at the right time. That is why analysts are directly and extensively involved in our business portfolio review, customer performance analysis, and strategy formation.
With this key insight in mind, we developed the Citi PremierMiles credit card to give our customers travel-related privileges and faster air miles accumulation. We also identified a group of customers with similar behaviour but with lower spend in the travel category. To engage them, we tailor-made travel deals to meet their needs, at the same time, increase their spend on their credit card. Admittedly, there is no short cut to transforming business insights into effective and implementable solutions. At Citibank, we use the SMART Principle.
Citibank’s SMART Principle We use SMART as our motto and guiding principle in making sure analytics is embedded across the entire consumer business in Citibank. Strategic: Analytics has to be strategic, not tactical. Hence, it is important to include analytics when forming the business strategy to ensure complete alignment to the business priority and ambition.
Client is at the center stage Fig.1 Segmentation
Cluster analysis is one of the commonly used methods to better understand existing and potential consumers, as well as to develop new products. After grouping customers according to their demographics and spending patterns, we discovered that there is a potential market for frequent travelers, as illustrated in Fig. 2, Segment 8 – Travel, Duty Free & Hotel.
Measurable: Analytics must be able to measure the outcome and effectiveness of the implemented solutions. The business will not be able to determine their next steps if they cannot pinpoint inefficient and unresponsive components of the implemented solutions. Actionable: Analytics must remain practical and focused on producing tangible benefits and value for both the customer and organisation. Real-time: Analytics has to be “real-time” in order to make the correct offer at the right time to the right customer at the right place. This will significantly improve the responsiveness of offers, at the same time, provide a WOW experience to customers. Test-and-learn: Analytics sharpness is developed and refined through a test-and-learn process. Developing this culture is necessary to ensure that learning and knowledge are captured, shared, and leveraged to improve future programmes. To survive in this competitive 21st century business environment, organisations need to do whatever they can to solve new challenges and remain relevant. BA is capable of achieving that, making it an essential and critical tool for all organisations.
Fig.2 Credit Card Lifestyle
Irene Xu Director Decision Management Citibank Singapore
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