Many banks face a sales challenge as customers increasingly use self-service channels and rarely visit branches, the channel that remains the main generator of sales. Many banks are not approaching marketing from the point of view of responding to or creating customer needs, but instead attempt to sell a product without paying much attention to how the product fits the particular customer in question. A smarter approach to marketing is desperately needed to create more revenue. SAP launched hybris Marketing solution in February 2015 and recently integrated hybris into its channel offering. Being marketing software not designed for the banking industry alone may be one of the more positive aspects of the hybris Marketing solution.
The growing tendency of customers to use self-service and rarely visit branches is creating a sales challenge for many banks, because branches are still the main generators of sales. In a number of banks, sales operations are not as sophisticated as they could be: banks often attempt to sell a product without accounting for a customer's needs or wants. Consequently, one-to-one marketing is rare among banks, although smarter marketing is desperately needed to increase revenue.
SAP recently integrated hybris into its channel offering to provide marketing, customer engagement, and commerce solutions for banks. The hybris Marketing solution is very new, dating back only to February 2015, when SAP expanded hybris to include contextual marketing. In its marketing solution, hybris offers, among other features, the possibility to devise and drive marketing plans using structured and unstructured data, even from social networks, and a single view of granular customer data as well as predictive analytics. Currently, hybris is in review by one tier-one bank, and Kazakhstan-based Kaspi Bank is referenced among the company's commerce customers.
Being a marketing solution not designed for the banking industry alone may be one of the more positive aspects of hybris. Although not all retailers are customer oriented, they commonly use more sophisticated marketing, including one-to-one marketing: Amazon already produces analytics-powered personalized offers for its clients. A number of large retailers, including Otto, already use hybris, and other retailers might follow suit. One potential objection to the adoption of hybris by banks is that it is designed for marketers who orchestrate campaigns, which might mean investment into marketing personnel. However, the need to increase revenue with smarter marketing will likely increase the importance of the marketing function within banks.
Retail Banking IT Priorities for 2015 and Spending Forecasts to 2019, IT0003-000649 (May 2015)
2015 Trends to Watch: Retail Banking – Transforming for Digital Age, IT0003-000634 (December 2014)
The Impact of Digital Transformation on Bank Branches, IT0003-000610 (June 2014)
Noora Haapajärvi, Associate Analyst, Financial Services Technology
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