Accelerating Value Creation Through Customer Analytics Seacoast Has - - PowerPoint PPT Presentation

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Accelerating Value Creation Through Customer Analytics Seacoast Has - - PowerPoint PPT Presentation

Nov 16, 2022 96 likes •389 views

Accelerating Value Creation Through Customer Analytics Seacoast Has A Valuable And Growing Florida Franchise Seacoast Customer Map Highly disciplined credit portfolio $6.9 billion in assets as of September 30, 2019, operating in

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Accelerating Value Creation Through Customer Analytics

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Valuable Florida Franchise With Disciplined Growth Strategy, Benefiting From Fortress Balance Sheet With Robust Capital Generation, Prudent Liquidity Position, And Strict Credit Underwriting

  • $6.9 billion in assets as of

September 30, 2019, operating in the nation’s third most populous state

  • Strong and growing presence in four
  • f Florida’s most attractive MSAs
  • #1 Florida based bank in the Orlando

MSA

  • Growing share in West Palm Beach
  • #2 share in Port St Lucie MSA
  • Growing presence in Tampa MSA
  • Highly disciplined credit portfolio
  • Prudent liquidity position
  • Strong capital position
  • Steady increase in shareholder

value with tangible book value per share increasing 19% year-

  • ver-year
  • Active board with a diverse range
  • f experience and expertise

TAMPA BAY MSA WEST PALM BEACH, FORT LAUDERDALE MSA PORT ST LUCIE MSA ORLANDO MSA

Seacoast Customer Map

  • Market Cap: $1.3 billion as of

September 30, 2019

FOURT H QUART E R 2019

Seacoast Has A Valuable And Growing Florida Franchise

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Florida Is An Attractive Market, With A Healthy Economy, And Strong Population Growth

Seacoast Customer Map

Source: Federal Reserve Data, Florida Trend, Florida Business Journals

  • Florida GDP surpassed $1 trillion in mid 2018
  • Florida GDP ranks fourth nationwide behind California, Texas

and New York

  • If Florida were its own country, it would have the 17th largest

economy in the world ahead of Saudi Arabia, Argentina and Switzerland

  • Florida’s economy generates $2.8 billion in GDP each day
  • Florida now the nation’s third most populous state

Florida Snapshot

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Florida Is A Growing Market Served By Dramatically Fewer Banks

50 100 150 200 250 300 $400 $500 $600 $700 $800 $900 $1,000 $1,100

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Florida GDP $ in Billions Number of Florida HQ’d Banks

Florida GDP # of Florida HQ’d Banks

Jan-10 Jan-11 Jan-12

Source: Federal Reserve Data

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The Traditional Banking Model Is Being Upended …

Source: Novantas

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The Traditional Banking Model Is Being Upended …

Source: Novantas

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Disruption Continues To Spread Across Industries …

January 26, 2016

French taxi drivers clash with police in anti-Uber strike

December 31, 2012

Tribune Co. emerges from bankruptcy

November 6, 2013

Blockbuster Video-Rental Chain Will Shut All U.S. Stores

Bloomber Bloomberg

January 17, 2017

Sears Clings to Catalog Thinking in an Online World

Dea ealB lB%k

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… As Power Shifts From Supplier To Customer In Every Industry

Yesterday Today The customer must be positioned at the heart of our business

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The Advantages Of Being Small

Data is readily accessible Software more attainable Opportunity attracts top-talent Mindset biggest determinant of success

But The Story Is Not About Digital & Analytics!

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Unique Approach To Growing Customer Value Patent Pending

A single view of the customer + Extensive use of advanced analytics + Three machine learning(1) models already in place Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation

BEHAVIORAL & FINANCIAL DATA

1Proprietary tools developed by Seacoast

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Unique Approach To Growing Customer Value Patent Pending

A single view of the customer + Extensive use of advanced analytics + Three machine learning(1) models already in place

Current Customers New Customers Bank Acquisitions

Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation

BEHAVIORAL & FINANCIAL DATA

1Proprietary tools developed by Seacoast

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Unique Approach To Growing Customer Value Patent Pending

A single view of the customer + Extensive use of advanced analytics + Three machine learning(1) models already in place

Current Customers New Customers Bank Acquisitions

  • Face to Face1
  • Outbound Call1
  • Inbound Call1
  • Email
  • ATMs
  • Online Banking
  • Direct Mail
  • Mobile Banking

Multi-channel approach to connecting customers with opportunities + 70 fully automated campaigns Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation

BEHAVIORAL & FINANCIAL DATA CUSTOMER TREATMENT PLANS

1Proprietary tools developed by Seacoast

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Example Of A Targeted, Multi-Channel Marketing Campaign

LOC usage campaign – delivered to eligible customers across multiple touchpoints Analytic models identify customers who have a LOC they are not using, triggering automated marketing campaign EMAIL ATM MESSAGE DIGITAL BANKING OUTBOUND SALES CALL FACE TO FACE INTERACTION

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A Closer Look At Seacoast’s Customer Analytics Journey

Central to Our Future Success Will Be Our Ability to Use Data to Drive Greater Value for Customers and Shareholders It Starts with CLTV (Customer Lifetime Value)

“Knowing each customer’s profitability is the first step to managing them” “If you can’t sort out your customers — if you can’t look at them and know who is good and who is bad — then you can’t be customer centric”

Peter Fader Professor of Marketing

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Seacoast’s Approach to Customer Analytics Is A Unique Advantage

UNIFIED, HOLISTIC VIEW OF EACH CUSTOMER

  • In-house analytical dataset of

27,000+ columns per customer

  • Derived information such as

Customer Contribution, Engagement Levels and Channel Preferences

  • Over 20,000 lines of proprietary code

(patent pending) developed to create this holistic view

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Seacoast’s Approach to Customer Analytics Is A Unique Advantage

UNIFIED, HOLISTIC VIEW OF EACH CUSTOMER

  • In-house analytical dataset of

27,000+ columns per customer

  • Derived information such as

Customer Contribution, Engagement Levels and Channel Preferences

  • Over 20,000 lines of proprietary code

(patent pending) developed to create this holistic view DYNAMIC CUSTOMER LIFETIME VALUE (CLTV) MODEL

PATENT PENDING

  • Dynamic view of each customer’s

value today and future potential

  • Ability to see changes in customer

value

  • Customer level revenue and

contribution

  • Top movers and losers for value,

revenue, deposits, loans

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Seacoast’s Approach to Customer Analytics Is A Unique Advantage

UNIFIED, HOLISTIC VIEW OF EACH CUSTOMER

  • In-house analytical dataset of

27,000+ columns per customer

  • Derived information such as

Customer Contribution, Engagement Levels and Channel Preferences

  • Over 20,000 lines of proprietary code

(patent pending) developed to create this holistic view DYNAMIC CUSTOMER LIFETIME VALUE (CLTV) MODEL

PATENT PENDING

  • Dynamic view of each customer’s

value today and future potential

  • Ability to see changes in customer

value

  • Customer level revenue and

contribution

  • Top movers and losers for value,

revenue, deposits, loans DRIVEN BY ANALYTIC MODELS AND MACHINE LEARNING

  • Opportunity Sizing Engine: identify

significant value gaps by comparing against lookalike customers

  • Branch Network Optimization:

estimate CLTV impact of consolidations and drivers of retention

  • Test and Learn: evaluate impact of
  • ffers and strategies in terms of value

generated

  • Predictive Value Loss: identify and

action CLTV losses before they occur

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Our Desire To Develop A Deeper Understanding Of Customer Value Has Become A Reality

  • Analytics was launched at Seacoast
  • Constructed holistic dataset of historical customer-level information
  • Learned the nuances important to properly understanding and interpreting the data

2014

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Our Desire To Develop A Deeper Understanding Of Customer Value Has Become A Reality

  • Analytics was launched at Seacoast.
  • Constructed holistic dataset of historical customer-level information.
  • Learned the nuances important to properly understanding and interpreting the data.
  • Created preliminary CLTV model incorporating the majority of value drivers
  • Platform implemented to visually and dynamically deploy the reporting

2014 2015

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Our Desire To Develop A Deeper Understanding Of Customer Value Has Become A Reality

  • Analytics was launched at Seacoast.
  • Constructed holistic dataset of historical customer-level information.
  • Learned the nuances important to properly understanding and interpreting the data.
  • Created preliminary CLTV model incorporating the majority of value drivers.
  • Platform implemented to visually and dynamically deploy the reporting
  • Socialized CLTV and evaluating “quick hits”
  • Created the CLTV Opportunity Sizing Engine
  • Began analyzing NPS scores by CLTV segment (customer value and potential)

2014 2015 2016

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Our Desire To Develop A Deeper Understanding Of Customer Value Has Become A Reality

  • Analytics was launched at Seacoast.
  • Constructed holistic dataset of historical customer-level information.
  • Learned the nuances important to properly understanding and interpreting the data.
  • Created preliminary CLTV model incorporating the majority of value drivers.
  • Platform implemented to visually and dynamically deploy the reporting
  • Socialized CLTV and evaluating “quick hits”.
  • Created the CLTV Opportunity Sizing Engine
  • Began analyzing NPS scores by CLTV segment (customer value and potential)
  • Implemented CLTV for Low-Tenure Customers
  • CLTV takes root in the organization (business unit reviews)
  • Predictive model to anticipate customer value loss rather than attrition
  • Integrated CLTV Opportunity Sizing Engine in our marketing automation platform
  • Monthly level customer contribution enabled

2014 2015 2016 2017

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Our Desire To Develop A Deeper Understanding Of Customer Value Has Become A Reality

  • Analytics was launched at Seacoast.
  • Constructed holistic dataset of historical customer-level information.
  • Learned the nuances important to properly understanding and interpreting the data.
  • Created preliminary CLTV model incorporating the majority of value drivers.
  • Platform implemented to visually and dynamically deploy the reporting
  • Socialized CLTV and evaluating “quick hits”.
  • Created the CLTV Opportunity Sizing Engine
  • Began analyzing NPS scores by CLTV segment (customer value and potential)
  • Implemented CLTV for Low-Tenure Customers
  • CLTV takes root in the organization (business unit reviews)
  • Predictive model to anticipate customer value loss rather than attrition
  • Integrated CLTV Opportunity Sizing Engine in our marketing automation platform
  • Monthly level customer contribution enabled
  • CLTV “Dynamic Tracking”: Monthly, Quarterly, Yearly and YTD look-backs
  • Performance Allocation: Business unit (relationship ownership) versus customer servicing location
  • Customer contribution sold mortgages enhancement
  • Deep-dive reconciliation/validation within 0.3% of finance

2014 2015 2016 2017 2018

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Associates

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The Unglamorous Part Of Driving Value With Analytics … Culture

What’s my role in all this? How is my job changing? How are you helping me serve customers better? How do I connect with the insights?

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Customers

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The Unglamorous Part Of Driving Value With Analytics … Culture

Associates What’s my role in all this? How is my job changing? How are you helping me serve customers better? How do I connect with the insights? How are you serving me better than your competitor? Why don’t you anticipate my needs? Why can’t banking be easier? I expect modern convenience and a relationship.

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The Unglamorous Part Of Driving Value With Analytics … Culture

Associates Customers Shareholders What’s my role in all this? How is my job changing? How are you helping me serve customers better? How do I connect with the insights? How are you serving me better than your competitor? Why don’t you anticipate my needs? Why can’t banking be easier? I expect modern convenience and a relationship. How much are you investing? When does it pay back? What are the implications for earnings? I thought only mega banks could do this?

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In Closing, Only Three Things Really Matter IMHO

  • 1. Are we meeting more of our customer’s needs than last year?
  • If so, then we are driving profitable growth amongst the current customer base and growing
  • rganically.
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In Closing, Only Three Things Really Matter IMHO

  • 1. Are we meeting more of our customer’s needs than last year?
  • If so, then we are driving profitable growth amongst the current customer base and growing
  • rganically.
  • 2. Are we attracting ideal new customers to the franchise at a rate that is equal or greater than our fair

share?

  • If so, then we are bringing in new sources of revenue growth and growing organically.
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In Closing, Only Three Things Really Matter IMHO

  • 1. Are we meeting more of our customer’s needs than last year?
  • If so, then we are driving profitable growth amongst the current customer base and growing
  • rganically.
  • 2. Are we attracting ideal new customers to the franchise at a rate that is equal or greater than our fair

share?

  • If so, then we are bringing in new sources of revenue growth and growing organically.
  • 3. Are our NPS scores aligned with the customer groups that create the most value and hold the most

potential?

  • If so, then we are delighting our customers and retaining value in the franchise.