client centric product development in retail banking by akif shaikh
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CLIENT CENTRIC PRODUCT
DEVELOPMENT IN RETAIL BANKING
Presented BY
Akif M Shaikh
SVP-Head of Products & Segment Banking
AL HILAL BANK
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As a best practice, it is imperative that robust Product
Development process is formulated for developing new
products and services, covering the various stages from the
conceptualization to commercialization in order to create a
financial product or service for delivery to its customer in
accordance to theirneed
OVERVIEW:
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1. Engaging customers in the PRE-DEVELOPMENT phase.
2. Understand how customerPROFILING improves customer acquisition & retention.
3. SAVE your customer
Predict, Identify & Act now.
4. Understanding the effectiveness ofSELF-SERVICEoption in branches for Greater
customer satisfaction & efficiency.
5. NEW Products to Old Customer rather than OLDProducts to New.
6. Customers Redefining Banking EXPERIENCE as a whole.
SCOPE...
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1. Engaging customers in the
2. PRE-DEVELOPMENT phase.
1.
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Retail Banking is built largely around product Silosa model that is
creating serious problems in the current economic environment.
Innovations in retail banking over the past few decades typically have
been launched and maintained in Siloseach with its own sales and
distribution model, technology, and operational infrastructure.
CONCERN:
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Retail Banks that dismantle their products silos will quickly differentiate
themselves from competitors by staying profitable in a era of shrinking
revenues and expanding regulations.
We do not view the shift to a customer centric organization as optional.
Retail Banks that are up to the challenge will quickly differentiate themselves
from competitors that cling to their silos. Positioning for competitiveadvantage, its of utmost importance to learn more about the customers needs,
wants and expectation to help them boost sales and to build Customer
relationship.
WHATS THE WAY FORWARD ?
Answer:
Engaging Customers In The Pre-Development Phase.
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Understand how customerPROFILING
improves customer acquisition & retention.
2.
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ADAPTINGSEGMENTAPPROACH
THAN
PRODUCT APPROACH
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What is Segmentation?
When a bank moves beyond one product or service offered to
one type of customer, it has started down the path of
segmentation. If the product traditionally appeals to men,perhaps a variation will appeal specifically to women, thus
segmenting the customer base. If the product appeals to young
adults, perhaps a variation will appeal to tweeners. There may
be a product that appeals to tweener males vs. tweener females.
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Why Segmentation?
Better matching of Customer Needs
Enhanced Profits
Enhanced opportunity for growth
Retail Customer
Target Communications
Market Segment Share
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PD SEGMENTED APPROACH
1) Identify Customer Needs &
Segment the Market
2) Develop profiles of resulting
segments
1) Evaluate attractiveness of each
segment
2) Select Target Segment
1) Identify differential advantage for
each segment
2) Formulate marketing mix
1) Develop Marketing plan for each
segment
2) Develop Marketing Organization
Market Segmentation Market Positioning
Market Segmentation Market Planning
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BASIS FOR SEGMENTINGCUSTOMER MARKET
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CRITERIA FOR EFFECTIVESEGMENTATION
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SEGMENTATION
Personal Banking Group
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SEGMENTATION
SEGMENTS
X-PAND
(SME)
SEGHAAR
(KIDS BANKING)
ASDIQA
(YOUTHBANKING)
LAHA
(LADIESBANKING)
THARWA
(WEALTHMANAGEMENT)
PERSONAL
(MASS)
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SAVEyour customer.
Predict, Identify & Act now.
3.
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Loyalty
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LOYALTY
Retention of
Customers ?
Repeat
Purchases ?
Create Profitable
Customers ?
Acquisition of
Customers ?More Information
on Customers ?
Reward Loyal
Customers ?
Just Another
Marketing Program ?
Reality
.
.could be all of the above !!!!
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PrimaryDrivers
Physical product Service product Service delivery Service environment
Ethics Image Reputation Positioning
Loyalty Programs Co Brands Alliances Special treatment Affinity Customer community
Price Product /Service*
Brand** Relationship
Purchase price Effort Time
Customer cost of
using your product
Complete Customer Relationship Experience
Customers want an end-to-end relationship experience
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Customer Value Perception
Organizations translation of Value
Fee Income
Simplifiedproduct offering
Bottom line
Life Time Free
Transparency in
charges
Value for money
One stop Shop for
all financial needs
Network
availability
Best in class
% returns/cancellations
# servicecalls/repairs
# customerinquiries
# billing queries
Ease of availability
Relevant Features
Wide service range
Easy accessibility
Speedy service
Customer empathy
Resolution of query
the first time
Strengthening
Brand image
Advertising
costs
Aspirationalvalue
Flash Value
Inspiresconfidence
Customertouch time
No. ofproducttraininghours
Understandingneeds
Processes &ServiceKnowledge
Preferentialoffers
PriceProduct /Quality
CustomerService
Brand Relationship
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1st : Have a clear articulated Customer Loyalty Strategy
Covers the entire customer experience during his lifecycle
Covers all customer touch points
Addresses his existing / potential relationship with the company
2nd : Must be in sync with Business Objectives
Customer / Segment profitability
Customer Contact strategy
3rd : Business Process to be customer centric
4th : Design Customer centric & Profitable Loyalty programs
Risk, Underwriting, Operational processes
Acquisition, Customer service, Marketing
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Loyalty
Strategy
Business
Objectives
Process
Changes
Loyalty
Programs
Lifecycle Experience ---- Define value proposition to customer
segments
Dynamic ---- Ability to react to changing customer needs and
behaviors
Seamless--- across all Channels, Business Functions and
touch points
Flexible ---- Ability to accommodate changes without
compromise Value & Choice ---- Value based on Customer Profitability &
offering relevant choice ( Bought-out or
Co- Branded )
Personalized ---- to the customers unique profile based on
Analytics
Branded---- Bought-out or Co-branded to address emotional
Targets ---- Program objectives clearly communicated
Metrics ---- Measurement capability in line with objectives
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Loyalty is not about short term rewards.it is about end-to-endcustomer experience with your products / services.
Companies need to have a enterprise wide loyalty strategy backed by
customer centric processes to deliver value.
Co branded programs work --- Ensure you get the value proposition
right
Profitable Customer
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Understanding the effectiveness of SELF-SERVICE
option in branches for Greater customer satisfaction & efficiency.
4.
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BRANCH BANKING
FUTURE VISION
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NEWProducts to Old Customer rather than
OLDProducts to New.
5.
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Customers Redefining
BANKINGEXPERIENCE
6.
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Innovative
Reach
Tube Banking
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InnovativeReach
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Innovative
Reach
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InnovativeReach
Auto Mall
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InnovativeReach
Auto Mall
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Customer Power
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Introducing theMoney Station
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