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

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 • Prudent liquidity position the nation’s third most populous state • Strong capital position • Strong and growing presence in four ORLANDO MSA of Florida’s most attractive MSAs • Steady increase in shareholder • #1 Florida based bank in the Orlando value with tangible book value MSA PORT ST LUCIE MSA TAMPA BAY MSA per share increasing 19% year- • Growing share in West Palm Beach over-year • #2 share in Port St Lucie MSA • Growing presence in Tampa MSA • Active board with a diverse range of experience and expertise • Market Cap: $1.3 billion as of September 30, 2019 Valuable Florida Franchise With Disciplined Growth Strategy, Benefiting From Fortress Balance Sheet With Robust Capital Generation, Prudent Liquidity WEST PALM BEACH, FORT LAUDERDALE Position, And Strict Credit Underwriting MSA 2 FOURT H QUART E R 2019

Florida Is An Attractive Market, With A Healthy Economy, And Strong Population Growth Florida Snapshot Seacoast Customer Map • 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 17 th 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 Source: Federal Reserve Data, Florida Trend, Florida Business Journals 3

Florida Is A Growing Market Served By Dramatically Fewer Banks Florida GDP $ in Billions Number of Florida HQ’d Banks $1,100 300 $1,000 Florida GDP 250 $900 200 $800 $700 150 # of Florida HQ’d $600 Banks 100 $500 $400 50 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Source: Federal Reserve Data 4

The Traditional Banking Model Is Being Upended … Source: Novantas 5

The Traditional Banking Model Is Being Upended … Source: Novantas 6

Disruption Continues To Spread Across Industries … Bloomber Bloomberg January 26, 2016 November 6, 2013 French taxi drivers clash Blockbuster Video-Rental with police in anti-Uber Chain Will Shut All U.S. strike Stores Dea ealB lB%k January 17, 2017 December 31, 2012 Sears Clings to Catalog Tribune Co. emerges Thinking in an Online from bankruptcy World 7

… As Power Shifts From Supplier To Customer In Every Industry The customer must be positioned at the heart of our business Yesterday Today 8

The Advantages Of Being Small Data is readily Software more Opportunity Mindset biggest accessible attainable attracts top-talent determinant of success But The Story Is Not About Digital & Analytics! 9

Unique Approach To Growing Customer Value Patent Pending Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation BEHAVIORAL & FINANCIAL DATA A single view of the customer + Extensive use of advanced analytics + Three machine learning (1) models already in place 1 Proprietary tools developed by Seacoast 10

Unique Approach To Growing Customer Value Patent Pending Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation BEHAVIORAL & FINANCIAL DATA Current Customers New Customers Bank Acquisitions A single view of the customer + Extensive use of advanced analytics + Three machine learning (1) models already in place 1 Proprietary tools developed by Seacoast 11

Unique Approach To Growing Customer Value Patent Pending Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation BEHAVIORAL & FINANCIAL DATA CUSTOMER TREATMENT PLANS • Face to Face 1 • ATMs Current Customers • Outbound Call 1 • Online Banking New Customers • Inbound Call 1 • Direct Mail Bank Acquisitions • Email • Mobile Banking A single view of the customer Multi-channel approach to connecting + customers with opportunities Extensive use of advanced analytics + + 70 fully automated campaigns Three machine learning (1) models already in place 1 Proprietary tools developed by Seacoast 12

Example Of A Targeted, Multi-Channel Marketing Campaign Analytic models identify customers who have a LOC they are not using, triggering automated marketing campaign LOC usage campaign – delivered to eligible customers across multiple touchpoints EMAIL ATM MESSAGE DIGITAL BANKING OUTBOUND SALES CALL FACE TO FACE INTERACTION 13

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” Peter Fader Professor of Marketing “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” 14

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 15

Seacoast’s Approach to Customer Analytics Is A Unique Advantage UNIFIED, HOLISTIC VIEW OF DYNAMIC CUSTOMER LIFETIME EACH CUSTOMER VALUE (CLTV) MODEL PATENT PENDING • Dynamic view of each customer’s • In-house analytical dataset of value today and future potential 27,000+ columns per customer • Ability to see changes in customer • Derived information such as value Customer Contribution, Engagement Levels and Channel Preferences • Customer level revenue and contribution • Over 20,000 lines of proprietary code (patent pending) developed to create • Top movers and losers for value, this holistic view revenue, deposits, loans 16

Seacoast’s Approach to Customer Analytics Is A Unique Advantage DRIVEN BY ANALYTIC MODELS UNIFIED, HOLISTIC VIEW OF DYNAMIC CUSTOMER LIFETIME AND MACHINE LEARNING EACH CUSTOMER VALUE (CLTV) MODEL PATENT PENDING • Dynamic view of each customer’s • Opportunity Sizing Engine: identify • In-house analytical dataset of value today and future potential significant value gaps by comparing 27,000+ columns per customer against lookalike customers • Ability to see changes in customer • Derived information such as • Branch Network Optimization: value Customer Contribution, Engagement estimate CLTV impact of Levels and Channel Preferences • Customer level revenue and consolidations and drivers of contribution retention • Over 20,000 lines of proprietary code (patent pending) developed to create • Top movers and losers for value, • Test and Learn: evaluate impact of this holistic view revenue, deposits, loans offers and strategies in terms of value generated • Predictive Value Loss: identify and action CLTV losses before they occur 17

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 2014 • Learned the nuances important to properly understanding and interpreting the data 18

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. 2014 • Learned the nuances important to properly understanding and interpreting the data. • Created preliminary CLTV model incorporating the majority of value drivers 2015 Platform implemented to visually and dynamically deploy the reporting • 19

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. 2014 • Learned the nuances important to properly understanding and interpreting the data. • Created preliminary CLTV model incorporating the majority of value drivers. 2015 Platform implemented to visually and dynamically deploy the reporting • • Socialized CLTV and evaluating “quick hits” • Created the CLTV Opportunity Sizing Engine 2016 • Began analyzing NPS scores by CLTV segment (customer value and potential) 20