Norwich and Peterborough Building Society maps branch network to maximise the performance of branch operations.
Norwich and Peterborough Building Society (N&P) has, in the recent past, completed a project with Leeds-based GMAP Consulting Ltd that has enabled it to maximise the performance of its UK branch network. GMAP Consulting, a leading supplier of market intelligence and predictive modelling solutions in the financial services sector, carried out an analysis of the building society's existing branch network. As a result, N&P is able to improve the service it provides to customers at the same time as maximise revenue opportunities. It has also been able to further focus the targeting of sales and marketing programmes.
GMAP's analysis involved benchmarking branch performance using both historical sales data and external data - on competitors, customer buying behaviour and relative branch location.
"By analysing historical sales data, against the location of our existing network - including the proximity of branches to retail outlets with high 'pulling power' - and demand data, we were able to work out expected market share by location," said Jeremy Moll, head of retail operations at N&P.
"GMAP helped us understand the detail in the data. We can now revise sales targets at some branches, redefine what services and products we offer in particular branches and identify opportunities for new branch locations."
"Most financial organisations compare like to like - past sales data for example - however this is not an objective benchmark of performance, said Professor Martin Clarke, a consultant at GMAP Consulting Ltd. "Financial organisations need to also take into account market data and specific details about the location of the branch and its proximity to other retail outlets. All of this can affect the performance and potential of a branch. A branch does not work in isolation".
"Planning the location of branches, or other channels to market like ATM machines, requires detailed analysis of a vast and complex amount of internal and external data sets. Mapping this information using our MICROVISION geographic marketing modelling tool, can help financial organisations like N&P maximise revenue opportunities."
GMAP's analysis also showed N&P the marketing potential of the area around branch locations. Professor Martin Clarke at GMAP says that "the mere presence of a branch creates a 'network effect' with customers closest to branches likely to be the most loyal."
Mike Hounsell is director of sales and marketing at Norwich and Peterborough Building Society. He says "the analysis has informed our marketing effort - ultimately improving the targeting of marketing campaigns and therefore reducing costs. In addition we are able to leverage our knowledge of the potential around specific branch locations to start local initiatives."
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