“Testing ideas before rolling them out is the most powerful way to de-risk key decisions. Some leading banks have pushed scientific testing to new levels. Their experiences hold important lessons for all banks,” said Patrick O’Reilly, President of APT.
Washington, DC and New York, NY (PRWEB) January 15, 2011
Applied Predictive Technologies (APT) announced today that 2010 saw significant increases in scientific testing aimed at understanding the impact of various strategic and tactical initiatives at leading North American banks. APT’s study reveals that testing at larger banks (those with more than 2000 branches) increased by 23% from 2009 to 2010, while banks with over $20B in assets increased testing by 85% in the past year. These leading banks are testing new ideas in nearly all functional areas, including staffing, pricing, customer retention programs, ATM surcharges, new product introduction and marketing, among others.
Over 38% of tests focused on media and marketing programs. Banks increasingly want to measure the ROI of numerous media channels (TV, radio, online) and a variety of campaigns focusing on different products and messages. Banks have also been increasing testing in other areas, including a 261% increasing in testing of pricing changes and actions related to mergers and acquisitions. Cross-channel servicing, relationship management programs, and branch remodels have also been areas of increased focus. Using sophisticated analytical tools, banks are increasingly able to answer nuanced questions, such as which elements of a remodel program help increase ROI, how changing staffing mix between part-time and full-time tellers impacts customer satisfaction and profits, and the optimal strategy for each branch after an acquisition.
Despite the significant uptick in testing, there still remains an untapped opportunity to increase scientific testing to identify the right strategies to respond to regulatory changes, further optimize deposit and loan pricing, and understand the best ways to improve customer retention and cross sell. While some banks are already doing this, many are leaving money on the table by not making the most of scientific testing to fuel innovation. “The banking environment continues to evolve very rapidly,” said Patrick O’Reilly, APT’s President. “Testing ideas before rolling them out is the most powerful way to de-risk key decisions. Some leading banks have pushed scientific testing to new levels. Their experiences hold important lessons for all banks.”
About Applied Predictive Technologies
Applied Predictive Technologies (APT) is the world leader in helping organizations harness the potential of Test & Learn, a powerful fact-based approach for choosing, targeting, and tailoring strategic and tactical actions for maximum impact and profitability. More than 50 Global 2000 leaders have licensed APT’s Test & Learn software, including Subway, Kraft, Wells Fargo, Holiday Inn, Staples, Lowe’s, Victoria’s Secret, Food Lion, and Toronto Dominion. APT has offices in London, San Francisco, Taipei, and Washington, D.C. Learn more about APT at: http://www.predictivetechnologies.com.
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