How uses Regional Marketing Analysis to analyze loan trends and dealer performance?

Did you know, recently Nipun Kaushal, Chief Marketing Officer, sets the stage with a bold move—a 30% surge in advertising spend for 2024. But behind the scenes, it's about more than just ads. It's about tapping into the pulse of each region through savvy marketing analysis.

Not just that, Q2FY23 witnessed Yes Bank's operating profits soaring to INR 790 crores, a testament to their knack for understanding regional dynamics. But what's the secret sauce? It's all in the data.

Yes Bank isn't just about big cities and bright lights. With over 1,000 branches across India, they've got their finger on the pulse of every region. And when it comes to financing vehicles, they're not just riding the wave—they're making waves of their own.

How?

By diving deep into regional data trends to uncover insights that drive loan trends and dealer performance. It's about understanding what makes each region tick and using that knowledge to fuel success. In this article, we are going to understand, how a leading full-service commercial bank like Yes Bank might be using regional marketing analysis method to analyze it's loan trends and dealer performance.

‍

Try this Business Use Case by yourself here👇

‍

About Dataset

Let’s Inspect our Customer Loan Data. This dataset offers an overview of loan agreements, showcasing essential details like customer information, loan specifics, and associated sales personnel. It reveals uniform loan conditions, such as interest rates and scheme codes, across various agreements. The involvement of multiple dealers and a consistent focus on the Hyderabad region highlight the localized nature of these financial transactions.

Additionally, the dataset illustrates the organization's structured approach to loan processing and sales management, providing insights into its operational focus and market strategy.

The Customer Loan Data contains over 16999 rows and 8 of our Columns have String Data type, 6 of our Columns have Integers Data Type, 1 column Float Data type has and 1 of the columns have Date Data Type.

‍

How Yes Bank Uses its Regional Marketing Analysis to analyze loan trends and dealer performance?

As a data analyst, it is crucial to address extensive datasets such as Customer Loan Data. We have developed a five-step plan focused on understanding the key aspects of Customer Loan data analysis.. By leveraging regional marketing analysis, it becomes easy to find trends in loan applications and dealer performance across India's diverse markets. This empowers them to tailor loan offerings, optimize strategies, and ultimately drive loan growth by pinpointing areas with high potential. 

‍

Step 1: Identify the users or stakeholders for the analysis

First up, they figure out who's going to use this data. In this case, it’s someone called a Marketing  Manager. Their responsibilities include developing marketing campaigns, grasping customer needs and preferences, evaluating competitor tactics, and gauging campaign success . It is also crucial for them to remain informed about market trends to effectively target the right customers with the right message.

User Persona: Marketing Manager

Responsibilities:

• Developing and executing marketing strategies to increase brand awareness and generate leads.
• Overseeing the creation and distribution of marketing materials, including digital content, print media, and advertising campaigns.
• Analyzing market trends and customer feedback to refine marketing approaches and target specific audiences more effectively.
• Collaborating with sales, product development, and customer service teams to ensure a cohesive and effective brand message.
• Managing the marketing budget and measuring the ROI of marketing campaigns to optimize spending and strategy.

‍

Needs:

• Access to comprehensive market research and consumer data to inform strategic decisions.
• Tools for managing and evaluating marketing campaigns, including software for digital analytics, CRM, and social media management.
• Up-to-date knowledge of marketing trends, technologies, and best practices in both digital and traditional media.
• Platforms for collaboration and project management to coordinate with team members and external partners.

‍

Challenges:

• Identifying and capitalizing on emerging marketing opportunities in a rapidly changing digital landscape.
• Balancing creativity with analytical rigor to develop campaigns that are both innovative and effective.
• Managing and allocating the marketing budget across a variety of channels to achieve the best possible ROI.
• Building and maintaining a strong, consistent brand identity across all marketing efforts and touchpoints.
• Adjusting marketing strategies in real-time based on performance data and shifting market conditions.

‍

After defining the User Persona and mapping out the needs, challenges, and responsibilities, the next step is to create an Empathy Map that will identify the user's pain points.

‍

Step 2: Design Empathy Map

To truly connect with the experiences and expectations of a Marketing Manager, the creation of an empathy map is invaluable. This visual tool allows for a deeper understanding of the emotions, aspirations, and pain points of users. 

By empathizing with their perspectives, we can design a data story that not only meets functional requirements but also resonates with the human elements of their roles.

‍

Step 3: Identify the Key Performance Indicators (KPI’s)

Once an empathy map is ready. As a data analyst, you need to decide on the most important things to keep an eye on, called KPIs (Key Performance Indicators).The heartbeat of any analysis lies in KPI’s and their Metrics. It's crucial to identify the KPIs that matter most to achieving the defined objectives and by focusing on the most relevant metrics, organizations can gain actionable insights into Regional Marketing analysis and  operations. 

‍

Step 4: Understand the Goals & Objectives of User

Based on the Empathy Map and KPIs, it is essential to establish the goals and objectives of the Users. This will help align with the data story functionalities for effective decision making. Here are the Key Objectives & Goals:

Objective : To conduct a thorough analysis of regional loan disbursement trends, assessing the performance and competitiveness of dealers and sales representatives. The aim is to understand customer preferences and operational efficiency across regions to inform targeted marketing strategies that align with consumer financial behaviors and demands.

Goals : Increase the loan disbursement volume in underperforming regions by over the next  quarter and optimize the average ROI offered by dealers to enhance the attractiveness of loan products. Increase the number of loans disbursed per sales rep by the end of the year through targeted incentives and marketing support.

‍

Step 5 : Ask Business Questions

Beyond KPI’s, organizations must engage in business-driven inquiry. This involves asking strategic questions that directly align with overarching business objectives. 

‍

1. How is our workforce distributed across all regions? Can we compare it to our total loan amount disbursed?

• Metric: Total Number of Employees, Total Loan amount

• Observation: With 40 Sales managers, 490 Sales Representatives and 691 Dealers across the country have reached 16998 customers.

‍

2. What is the average loan amount and number of customers converted by sales managers? Are there any sales manager performance we need to investigate?

• Metric: Average Loan Amount, Customer Count

• Observation: There seems to be a difference between our top sales manager i.e. Rakesh Kumar and other remaining managers.

‍

3. Who are our top 10 sales managers in terms of loan amount and sales rep and dealers under them?

• Metric: Count of Sales Rep, Dealer, Loan Amount

• Observation: Rakesh Kumar has the highest Loan Amount in comparison to others with $765.7m across 10 sales manager as shown in the graph.

‍

4. How are our cities in different regions in customer base and loan disbursement?

• Metric: Sales and profit

• Observation: Udupi is the best performing city in  Karnataka with Sales of 15.5 million and profit of 2.9 million

‍

Outcomes:

1. The workforce comprises 40 Sales Managers, 490 Sales Representatives, and 691 Dealers, reaching 16,998 customers, indicating a broad national coverage that should be analyzed against the total loan amount disbursed for productivity insights.

2. Yes Bank approved $1.3 billion in loans, but only disbursed $1.2 billion with a disbursement ratio of 92.31%. The disbursed amount is slightly lower than the total loan amount. This suggests that not all approved loans were disbursed.

3. The data shows a steady increase in the total number of customers from 4160 in 2020 to 4303 in 2022. There's a slight dip in 2023 (4267), but overall, there's a positive trend in customer

4. While Rom leads in total loan amount ($328.7M) and Karnataka boasts the highest average loan size ($80.6k), Mumbai remains a crucial market with a large customer base (3934) and potential for growth by increasing average loan sizes. Telangana and Gujarat also present opportunities for customer acquisition or larger loan offerings due to their sizable customer base and room for loan growth.

‍

Conclusion

Yes Bank's broad national reach, with over 1200 personnel serving nearly 17,000 customers, presents an opportunity to optimize loan disbursement. While disbursement reached $1.2 billion, with a disbursement ratio of 92.31% a deeper analysis of regional performance, like Mumbai's high customer base and loan volume, can inform targeted strategies to improve loan conversion rates and capitalize on existing customer relationships across the country.