KB Card Charges Ahead with Marketing Innovation
Real-time campaigns, improved customer
experience, minimized dependency on IT
CHALLENGE
“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.”
—Jaehoon Park, Head,
Big Data Strategy Center
DETAIL
“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.
SOLUTION
300
Market segments addressed
simultaneously, whereas before
it was 30
“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.
SUCCESS STORY | 2
KB KOOKMIN CARD
KB Card is a subsidiary of KB
Financial Group, South Korea’s
number one comprehensive
financial group responsible for
banking, securities, insurance,
and credit cards.
FAST FACTS
Assets: US$15B
Profit: US$300M
Branches: 70
Card holders: 19 million
Credit card agencies: 2.2 million
DETAIL
US$600
MILLION
Increased credit card use in first
year using the new platform
“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.
BENEFITS
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 dragand-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.
FUTURE
“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.”
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06/01/17