Download - Channel strategy, v1, 2011
Presented by: Kevin ChettyCommercial Director
MULTI-CHANNEL APPROACH FOR MULTI-CHANNEL APPROACH FOR FINANCIAL INSTITUTIONSFINANCIAL INSTITUTIONS
‘ Strength lies in Differences NOT Similarities’ – Stephen Covey
‘The achievement of an organisation are the results of the combined effort – Vincent Lombardi
INTRODUCTION
Topic Presenter Delegates Workshop Ground Rules Workshop Expectations & Objectives
4
AGENDA
Day 1 Session 1: Customers, Landscape, Strategy
Case Study & Exercise
Session 2: Mobile Strategy (Mobile Sales Strategy & M – Commerce)
Case Study & Exercise
Session 3: Branch StrategyCase Study & Exercise
Session 4: Alternative StrategyCase Study & Exercise
6
SESSION 1: Customers, Landscape, Strategy
The Alchemist – Paulo Coelho
“It’s the possibility of having a dream come true that makes life interesting”
9
RETAIL BANKING A REALITY
The traditional retail bank is at an inflection point. The needs and expectations of customers are changing as quickly as the competition. Customers are demanding seamless, multi-channel sales and service experiences. Simultaneously, other financial institutions and non-traditional players are looking for opportunities to invade this space or to redefine it through disruptive innovation.
The result is forcing banks to examine a more balanced, integrated approach to customer experience and growth
1. Background
10
AN EVOLUTION FIND YOUR SPACE
1. Background
Global banking more competitive
The IT revolution
Information explosion
Rationalisation of branches in 1990’s
Banks are trying to become one-stop financial supermarkets
THE CHANGING FACE OF BANKING
In view of several developments in the 1990’s, the banking industry is changing …
How did banks respond?o Distribute financial services through other ways and channels
…o … proliferation of non-traditional banking channelso Growth in usage of MOBILE selling agents
1. Background
Key macro econ trends
Macro economic environment outlook is moderate
Customers
Use a wide range of financial products
Proliferation of distribution alternatives
Regulation
Tier 2/3 legislation
National Credit Act
Competition Commission
Lower commission earnings
Market landscape
Competitors becoming increasingly aggressive
Alliances and joint ventures
Banking environment
A COMPETITIVE LANDSCAPE eg SOUTH AFRICA
1. Background
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WHAT DO CUSTOMERS WANT? NOT WHAT BANKS……
Booz Allen’s consumer research reveals that despite the development of alternative channels, customers still prefer to purchase in the branch. However, the importance of the branch is in decline, and the mass affluent form the group leading the march away from branches, and towards mobile banking, mobile sales force and the Internet. When it comes to alternative channels, customers prefer online to telephone transactions, particularly when the product and the transaction itself are relatively simple. One area in need of significant development is the mobile sales force, which at present is limited or nonexistent in all but a few countries.
Source: Reference Booz/Allen/Hamilton - Striving for Growth, Best Practices in Retail Banking Sales and Service Channels
1. Background
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RAISING THE GAME IN RETAIL BANKING
Booz Allen’s research shows there are clear opportunities to enhance revenue in retail banking. Going forward retail banks need to:
o Provide dedicated channels (website, call centre, mobile sales forces and specialist areas in branches) for affluent customers.
o Reduce waiting times in branches through the use of welcome desks (concierge concept) and the option of making appointments in advance.
o Efficient call centre menus and staffing that enable customers to quickly reach people who can resolve their queries.
o Enable customers to tailor websites, supported by strong security measures (e.g. random number generators).
o Offer mobile sales advisers who can complete transactions at the meeting, for selected customer groups.
Source: Reference Booz/Allen/Hamilton - Striving for Growth, Best Practices in Retail Banking Sales and Service Channels
1. Background
THE CURRENT BANKING LANDSCAPE
• It has been almost 3 years since the Global Financial Crisis
• The current banking environment is a lot different to a decade ago
• Branches have been rationalized
• There is consolidation
• Current focus is on Capital Adequacy & stringent Central Bank requirements
• Growth is immanent (Organic vs. Inorganic growth)
• Greater demand from customers
• Development of various channels
• BUT it will be about RISK, COSTS, EFFECIENCY, LEVERAGE, JV’s, M&A’s
1. Background
CHANNEL STRATEGY• For businesses to survive Growth is imperative
• A Channel Strategy is amongst the most enduring decisions a company will make
• Why companies adopt or embrace a channel strategy is often related to their growth prospects, need for new customers and an increasing competitive landscape
• The world in which we practice, trade or market our products have considerably changed
• The economic woes in the last few months’ have been catastrophic to say the least
• The global financial meltdown has restricted and impacted growth in many countries and companies alike, including Africa
• However, we are beginning to witness a turn for the better in the economic cycle
• Whilst this is positive news, BANKS must select a channel carefully when considering to distribute products or services
• A correct channel strategy comes through a correct Segmentation Strategy
• The appropriate channel should be assigned to each customer segment. The challenge for companies that opt for a ‘multi-channel’ approach is knowing how to orient each customer towards the channel that best fits its profile. It is equally important to analyse each channels costs and profitability, as it is to analyse the cost and profitability of each customer in each channel.
• The growth of new channels such as the internet or mobile phones has redefined or changed the game in many sectors.
1. Background
KEY BENEFITS IN DEFINING A CHANNEL STRATEGY
• Increase in sales
• A targeted market coverage
• Minimize sales expenses as the strategy and channels are defined
• Capture EXISTING markets and acquire NEW markets
• Keeping abreast of the competition
• Increase to the existing client data base
1. Background
KEY CAPABILITIES
• Create new alternative channel programs
• Improve competence and commitment of direct and in-direct channels
• Sales force sizing based on each channel
• Driver for committed and competent partners
• Hybrid channels
• Direct vs. In-direct distribution channels
• Indentifying and recruiting the best channel partners
• Managing channel conflict
• Compensation (incentives, commissions) and channel finance
• Measuring the channels success
1. Background
DEFINE
DIRECT CHANNEL:
Those channels where there is direct control
1. Background
IN-DIRECT CHANNEL:
Those channels where there is NO direct control over the channels
DIRECT vs. IN-DIRECT CHANNELS
1. Background
Direct Channel
Type Channel
Description Strengths Weaknesses
Electronic Internet Company internet site. Most channels can be linked to the internet, depending on the PUSH/PULL strategy. Internet must have access point for prospective clients. This must be linked to a central email address, finally to a central data base.
Most consumers have access to PC/internet zone. Cheaper channel as most traffic is via the consumer/client. Clients have access to wider information
If the internet is NOT user friendly, navigation can become tedious to frustrating. Hence ease of access is crucial
Direct email to Sending direct mailers to a prospective/identified customer base. This involves a BTL campaign message. Data base that has accurate information is KEY.
Most businesses have access to email. It is more cost effective. There is NO delay in the release and receiving of information. Campaign messages can be tailor made and using multi-media (e.g. Saleslink)
Dependant on the reliability of email address provided. Consumers can become overloaded with so called junk mail.
Direct email from
Receiving an email from a prospective customer. Linkage to a central email address and data base
It is cost effective via a client. Furthermore, increases the success of closure
Not responding on time (with 24/48 hours)
Telephony Telemarketers Outbound and Inbound. Using defined CRM/IT platform for all sales and information sharing. In addition, low key desktop call centre can be set up.
Competitive advantage through a centralized approach, company controls value chain. Hence, reduce other operational costs/infrastructure
Can become very costly if implemented incorrectly. Clients are inundated with calls thus increasing caller frustration. Poorly trained Telemarketers can damage reputation. Furthermore the conversion ratio is low
Telephone Automated
Automated recording of a message Cost effective Can become frustrating to a customer, if the message is NOT responded to.
SMS Must be linked to a dedicated call centre, so that the response is immediate. This will improve the customer service image
Cost effective and can be used effectively in customer follow-ups, e.g. birthdays, thank you etc
Can become costly to manage if implemented incorrectly. Message contents has to be small
IVR Interactive Voice Recorders. Automated interactive system with a caller. Both inbound and outbound
Reduced overhead costs associated with staff. Helps improve sales and information gathering
Can become very costly for a company. Can prove to frustrating for a consumer
Post Direct Mailers Campaigns in most retail segments driven through direct mailers. These are tailored messages for the intended recipient
If the campaign is well packaged, the conversion/response rate is higher
Can become costly and ineffective due to post delays
Magazine Stuffers
Campaigns and information on a company/product is placed in certain magazine/s
Stuffers are placed in strategic magazines with a direct focus on a target market
Can become costly if the response is very low to NIL
DIRECT vs. IN-DIRECT CHANNELS
1. Background
Face 2 Face
Walk-in and Referrals
Customers that simply walk-in or referred by a client. This is dependent on the PUSH/PULL marketing strategy
The company has an active person to engage with and sell a product
This is dependent on the marketing strategy and the brand equity. IOW the product is TOP on mind
Direct Sales Agents employed by company
Employing agents to fulfill sales Direct activities are most effective in a high volume industry type
Niche industries DSA’s become more difficult. Can be very costly. If NOT effectively trained can damage a brand. RISKs such as fraud
Media BTL Campaigns
These are much targeted campaigns on a specific data base/segment. These include Print, TV, and Radio. The campaign message must be segmented and implement over a defined 12 month campaign period. Including breakfast and conferences.
They have proven to be more successful due to the focused strategy. Planning is done in advance so as to ensure costs are curtailed or maintained. This gives companies the competitive advantage and increase in organic growth
They are costly if planned incorrectly
Other Fax Fax to email is the most appropriate process
For companies that have NO email or are responding to a campaign
Quality of information
Interactive Media Kiosks
Kiosks that are designed for a company and have an interactive link to a company/website/email
Reduce people, infrastructure costs. Embracing innovative technology gives you the competitive advantage. Place at strategic points, e.g. SME Banks
Can become very costly
Interactive TV Using TV as an interactive medium. Used in game shows etc
Reduce people, infrastructure costs. Embracing innovative technology gives you the competitive advantage
Can become very costly
Social Media Twitter, Facebook. These have become leading interaction sites for business people.
Cost effective. Used by a wider audience, hence captive audience. Can create blogs and interactive linkages for your company. Hence, groups of people will apply
?
DIRECT vs. IN-DIRECT CHANNELS
1. Background
IN-Direct Channel
Type Channel Description Strengths Weaknesses
Electronic 3rd Internet Sites Information is flagged on 3rd party sites. Usually 3rd party sites have close similarity to a company or engage in business with a company
Increase marketing exposure
Linkage to company site must be agreed upon. Reliability of 3rd party site
Telephony Outsourced Telemarketing
The entire outbound and inbound call centre is outsourced
Reduced infrastructure and resource investment. Most effective if a RISK vs. REWARD model is used
Can become very costly. May NOT receive dedicated support as the outsourced partner may have other clients
Post Knock n Drop Outsource the drop off of flyers or leaflets or newsletters
Capture a wider target market. Limit the use of internal resources
Company personal may NOT drop off all the flyers or leaflets. Conversion is very low
Regional Surveys Have door to door surveys. In the form of a questionnaire
Control and monitor responses
Interviewer biasness
Face to Face
3rd Party Direct Sales Agents
Outsourcing the sales and marketing function. This is one of the biggest emerging trends world-wide. Commission driven
Works well if a risk vs. reward model is used. Reduced labour associate costs. Increased speed to roll-out
Reputational risk
Partners/Associate Companies
Establishing a network of deal makers regional or country-wide. This can be individuals and companies. Commission or % of driven
Increase geographical reach and access to NEW customers
Reputational risk
Media Trade Shows through 3rd Parties
Coordinated by an external field marketing company. Gathering of information or data. This will be used for prospecting. Important for ATL Brand Equity
Can undertake more trade shows in a given month, quarter, year.
Quality of leads or information gathered. Costs can be high
ATL Campaigns Includes Print, TV, and Radio. A very important constituent for Brand building or Brand Equity creation
Results can be very positive long term. However, this is linked to defined campaigns. Great for the PUSH strategy
Costly and time consuming
Other Joint Ventures Forming an alliance with a company that has similar philosophy or capability to fulfill a sales channel function
Increase organic growth very quickly. Increase geographical footprint. Very effective for Retailers.
Can fail if the objectives and vision is NOT shared
CHANNEL COST EFFECIENCY vs. VALUE ANALYSIS
1. Background
Low Medium High
High
Medium
Low
Value to the User
AVOID IT
AVOID IT
TRADE OFF
TRADE OFF
DO ITDO IT
Website for information
Face to Face interaction
State of art Call Centre
The success for most channels centres on a company’s ability to achieve balance between the variable or fixed costs drivers, and the value the end user gains in using the respective channel. Hence, the above model is a good schematic view of the Cost Efficiency vs. Value to an end user. It can be applied when making respective channel decisions. In addition, it highlights three critical decision paths:
Avoid IT: this is attributed to low cost efficiency and low end user value, e.g. interactive TV
TRADE OFF: has medium cost efficiency and medium value to a client, e.g. direct sales agents. Business must take a strategic decision
DO IT: has high value and high cost efficiency drivers, e.g. company website
COST BREAKDOWN PER CHANNEL
1. Background
Direct Channel
Type Channel
Description of Cost Drivers Cost per Driver Total Cost
Electronic Internet Service provider monthly cost Line rental cost
Direct email to
Direct email from
Telephony Telemarketers
Telephone Automated
SMS
IVR
Post Direct Mailers
Magazine Stuffers
Face 2 Face
Walk-in and Referrals
Direct Sales Agents employed by company
CHANNEL CAPACITY
1. Background
Direct Channel
Type Channel
Mgr/ Sup
No. Staff
PC Laptop Printer Scanner Fax Tel
Electronic Internet
Direct email to
Direct email from
Telephony Telemarketers
Telephone Automated
SMS
IVR
Post Direct Mailers
Magazine Stuffers
Face 2 Face
Walk-in and Referrals
Direct Sales Agents employed by company
CHANNEL PRODUCTIVITY
1. Background
IN-Direct Channel
Type Channel Productivity Measurements Conversion Ratio %
Electronic 3rd Internet Sites No of hits/responses
Telephony Outsourced Telemarketing
Measured against Prospects vs. called vs. converted appointment. Call centre will keep a tracking sheet.
Post Knock n Drop No of responses via a selected channel. Prompt customer to use email/call centre
Regional Surveys Measure number of applications filled in an area. Info is captured onto a data base.
Face to Face 3rd Party Direct Sales Agents
Measured against target vs. achieved. In addition measure achieved vs. comms paid out.
Partners/Associate Companies
Measured against set targets per month or quarter. Pick this up on the comms paid
Media Trade Shows through 3rd Parties
No of people that visited stand, from details filled on customer visit form. This info is captured onto data base. Use Call centre to follow-up
ATL Campaigns Depending on the medium measure against info sent vs. customer’s response. Prompt customer to use email/call centre
Other Joint Ventures Depending on the agreement i.e. partnership
COMPARITIVE INCOME
1. Background
D & ID Electronic Telephony Post Face 2 Face
Media Other
Sales:
Operating Expenses:
Nett Effect
CHANNEL SELECTION MATRIX FROM A CASE STUDY
1. Background
PROCESS MAPPING/MANAGEMENT
1. Background
Generate Customer
Lead
Import Customer Lead Data
Create Marketing Campaign
Initiate Customer Appointment
Customer Enters the
Branch to Start a Potential Business
Relationship
Capture the Individual’s
Demographic Details
Capture the Individual’s
Financial Profile
The system calculates Individual’s
Segment and Sub-Segment
The System Calculates Credit and Risk Score
Analyse and Guide the
Customer to Determine their Banking Needs
Close Sale with the Customer
Select Current and Future Banking
Needs
Discuss and Capture Credit
Application Limits
Request Customers KYC
& Credit Documents
Receive & Scan the Customer KYC & Credit Documents
Create KYC & Credit
Document Reminder Activities
Initiate the Credit Product
Application Process
The CRM System Approves, Refers
or Decline the Customer’s Credit
Application
Initiate Country Credit Officer Verification
Process
HQ Confirms Customer’s Scoring
& Affordability Calculation
Electronically
Request 3rd Party Security
Valuation if Applicable
Scan Supplier Valuation /
Security Report
Electronic HQ Credit
Application Approval or
Decline
Notify Customer with the Credit
Application Outcome
Facilitate Customer
Application Review
Initiate the Credit Product Take-up
Process or Cancel the Application
Explain the Product Terms
and Conditions to the Customer
Scan the Customers
Product Terms and Conditions
Create Customer’s CIF
and Account Details in FCC
Scan Customer’s
Signing Mandate Form
Create the New Customer Concept Activities
Fulfill Customer’s
Product Welcome Pack
Walk Customer To the Branch
Exit Door & Greet
Disperse Funds
Take Customer’s Webcam Image
Create Customer’s
Relationships in CRM
IMPLEMENTATION STRATEGY BASED ON MY EXPERIENCE
1. Background
THE 6 DYNAMICS CUSTOMER FOCUSIn the EVOLUTION of retail banking channels, the 6 dynamics are critical to developing effective CUSTOMER FOCUSED strategies:
• Branch generated revenue growth is becoming more challenging
• Transaction processing and customer services are becoming increasingly independent of the branch channel
• Customer demographics are shifting
• New technologies are gaining widespread adoption, allowing customer relationship management to become channel independent
• Changes in the regulatory environment are altering the playing fields
• Banks must prepared for overlapping competition (Non-Banking Entities)
1. Background
SESSION 2: Mobile Strategy
OVERVIEW
MOBILE SALES CHANNELS
1. Background
MOBILE E-COMMERCE
MOBILE SALES CHANNELS
1. Background
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MARKET OVERVIEW: DEMOGRAPHICS CASE STUDYDiverse distribution and concentration of Target Market population
Provinces National Total (000's) R0-R2,999 (ELB) (000's)R3k-R24,999 (CMM)
(000's)R25k-R39,999 (RA)
(000's) Occupation National Total (000's)
Eastern Cape 4,616 14.8% 3,913 17.3% 641 9.6% 6 3.6%
Occupation, Administrative & Managerial
673 2.2%
Free State 2,000 6.4% 1,571 7.0% 298 4.4% 6 3.4% Occupation, Agriculture 1,101 3.5%
Gauteng 6,402 20.6% 3,677 16.3% 2,029 30.2% 102 58.8%
Occupation,Artisans & Related 1,047 3.4%
Kwazulu Natal 6,363 20.5% 4,725 20.9% 1,348 20.1% 26 15.0%
Occupation,Clerical & Sales 2,743 8.8%
Limpopo 3,347 10.8% 2,659 11.8% 388 5.8% 8 4.5% Occupation, Not Active 18,531 59.6%
Mpumalanga 2,315 7.4% 1,730 7.7% 471 7.0% 10 5.8%
Occupation,Production & Mining 2,061 6.6%
North-West 2,222 7.1% 1,707 7.6% 419 6.2% 2 1.1%
Occupation,Professional & Technical
1,551 5.0%
Northern Cape 770 2.5% 622 2.8% 120 1.8% 3 1.5%
Occupation, Service 2,579 8.3%
Western Cape 3,071 9.9% 1,970 8.7% 996 14.8% 11 6.2%
Occupation,Transport & Communication
709 2.3%
Totals 31,106 100% 22,574 100% 6,710 100% 174 100% Occupation, - Other 113 0.4%
Totals 31,108 100%
59,6% Not Economically Active
Source AMPS2007B
Provinces with the highest distribution ALL segments:
• Gauteng
• KwaZulu Natal
• Western Cape
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MARKET OVERVIEW: ECONOMICS
Growth slow down and upward Inflationary pressuresReal GDP growth
0
1
2
3
4
5
6
2000 2001 2002 2003 2004 2005 2006 2007 2008
%
CPIX Inflation and Interest Rates
2
4
6
8
10
12
14
16
18
2000 2001 2002 2003 2004 2005 2006 2007 2008
%
CPIX inflation rate Prime interest rate
Overview of 2007
Prospects for 2008 Economic growth is expected to slow down further in 2008 on the back
of rising interest rates, infrastructure (electricity) constraints, and a struggling household sector.
A slowing US economy and the impact this will have on world growth, will also cause lower real GDP growth in South Africa, projected at 3,4% in 2008.
Inflation is forecast to be under strong upward pressure for most of the first half of the year as a result of movements in oil and food prices, and the rand exchange rate.
Interest rates are projected to rise another 50 bps in June, remaining stable in the rest of 2008 in an attempt to keep inflation and inflation expectations under control.
In 2007 the economy continued to perform strongly with real GDP growth coming at 5,1% after the 2006 growth rate was revised upward to 5,4%.
The services sector, in particular the financial, real-estate and business services sector made the strongest contribution to growth towards the end of the year as banks’ balance sheets and revenues continued to grow at a rapid pace.
After remaining stable in the first half of the year, interest rates were hiked further in the second half of the year on the back of rising inflation.
Interest rates were raised by a total of 200 basis points between June and December, and together with the implementation of the National Credit Act (NCA), caused demand for credit to gradually taper off towards year-end.
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ABSA FOOTPRINT IN SA GEO-SPATIAL MAPPING
38
External Sales & External Sales & OperationsOperations
Direct Sales Direct Sales and Serviceand Service
Channel for the nicheChannel for the nichemarkets,markets,
WPB BusinessWPB BusinessDevelopmentDevelopment
The purpose of WPB Business Development is to aggressively grow the number of schemes, active portfolio growth and B2B relationship management
The purpose of Direct Sales and Service is to optimise the use of a dedicated call centre foracquisition, cross-sell and support to the external sales team. A CRM approach willbe adopted, with an out-sourced or in-house approach
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The purpose of Ext Sales & Operations is provide an external sales force for niche markets at the worksite, at home place of convenience or distribution channels (ESP)
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Development of compelling value propositions for the WPB externalDevelopment of compelling value propositions for the WPB externalsales teams focusing on worksites, niche markets and aggressive sales teams focusing on worksites, niche markets and aggressive acquisitionacquisition
In house or out sourcedIn house or out sourced
PurposePurpose: To grow the access of sales & service within NICHE markets, through dedicated external sales teams at the worksite, at place of convenience or on the phone………
FinanceFinance
MarketingMarketing
Human ResourceHuman Resource
Delivery Solutions Delivery Solutions & Innovation& Innovation
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MOBILE SALES FORCE BUSINESS MODEL
LEAD GENERATOR SEGMENTED APPROACH
GRCB Lead Generator Conference, London, 18 &
19 May 200839
MOBILE FORCE SEGMENTATION MODEL
Segment specific focus MS force spread over 10 Provinces
LG DesignationMarket
SegmentProduct Focus
Total Comp.
FTE (ABSA)
Contract(Outs – 3rd
Party)
MS: Acquisition BankerRetail Affluent
Investment ProductsRetail Affluent Transactional ProductsUnsecured Lending Products
100 100 0
MS: Islamic BankerIslamic Shariah compliant Transactional and
investment ProductsShariah compliant Vehicle Finance
85 85 0
MS: Core Middle Market Focus
Core Middle Market
Transactional ProductsUnsecuredLending ProductsInvestment ProductsValue Add, e.g. Telephonic Banking
296 139 157
LG: Entry Level Banking Focus – (1) External Sales Points (linked to Branches)(2) Mobile Sales Unit (Unbanked Focus)
Entry Level Banking
Transactional ProductsUnsecured Lending ProductsInvestment ProductsBasic Insurance ProductsValue Add, e.g. Telephonic Banking
ESP: 450
Mobile Units: 54 0 504
TOTAL MS 985 324 661
GRCB Lead Generator Conference, London, 18 &
19 May 200840
Prof’s63 400
Yout
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Entry-level banking
SeniorsCore Middle Market
Students
Retail Affluent
New to bank customers
Fina
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hist
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New to bank customers
Unbanked
Staff
R36 000 pa
R120 000 pa
R300 000 pa
Micro Lending
CMM3.6m
ELB3.79m
Students105 000
Youth490 000
RA290 969
Absa retail acc customer base2
Note: 1 Source: Primary Bank Relationships – Amps ‘07 2 Source: Absa Internal reflecting all relationships: Dec 2007
R650 000 pa
Staff49 629
Seniors1.32 m
Private BankR15m NIA
Wealth
Black diamonds
CUSTOMER SEGMENTATION MODEL
Entry Level Banking up to Retail Affluent Segment
41
Order confirmation
Resource pool management
Interview
Request CM / ED / Ref Checks
Conventional sourcing methodsUnconventional sourcing methods
• Within Absa Bank• External Sources
• Leveraging brands ADCORP
Sourcing Labour Broker
CV
Walk-In / Telephone
Adcorp alliances
First-line screening
Assessments (SHL, Hrsmart)
Competency based interview
Voice recognition assessment
Credit Checks
Cultural match interview
Request red list Client interview Induction
Quest trainingFAIS
accreditation
Workplace preparedness
incubatorPlacement
OUTSOURCED RECRUITMENT MODEL
42
TRAINING
Mobile Sales Force Academy : Lean Curriculum- 5 day Programme
Days 2 and 3Business Simulation
encompassing Sales, Service, Products and Process
Days 4 and 5Regulatory Training
(NQF 4 and 30 Credits)
Day 1 Absa Socialisation (high level)Absa Compliance and testing
According to Financial Services Board the regulatory pre-requisite for this role is the NQF 4 and 30 credits. Money laundering and Sanctions are compulsory prior to contact with the client.
43
MOBILE SALES CAPABILITIES & DEPLOYMENT
Segmented Distribution Channel focus providing multiple options of delivery
Entry LevelBankingExternal Sales Points(ESP’s)Focus: Branch Hot Spots
Entry LevelBankingMobile Sales Units(MSU’s)Focus: Townships
Workplace Banking KiosksFocus: WorksitesCore Middle Market
Banks on Wheels (BOW’s)Focus: ELB and CMM at Events, Worksites, Branch Support
Comprises:•Gazebo•Digital pens (2)•POS device•Tables (2)•Chairs (7)•Marketing materials•Promotional materials•Card and Pin Mailers•3 DSA’s per team•Team Based Targets and Incentives
Comprises: •Mercedes Sprinter•Gazebo•Generator•Combination TV and Video (CET)•Remote opening kits (2)•Digital pens (2)•POS device•Tables (2) and Chairs (7)•Marketing materials•Promotional materials•Training ATM•6 DSA’s per team
Comprises:•Large Kiosk•Generator•Remote opening kits (2)•Digital pens (2)•POS device•3G printer/Fax/Scanner•Marketing materials•Promotional materials
Comprises:•VW Crafter•Generator•Combination TV and Video (CET)•PA System•FBSS Workstations (2)•Fully functional ATM•Marketing materials•Promotional materials•4 FTE’s per BOW•Chairs and Umbrella’s
Functionality:•Account opening•Basic Enquiries•Mini Statements (future)•Prepaid purchases (future)
Functionality:•Account opening•Basic Enquiries•Mini Statements (future)•Prepaid purchases (future)
Functionality:•Account opening•Basic Enquiries•Mini Statements•Prepaid purchases
Functionality:•Account opening•Basic Enquiries•Mini Statements•Prepaid purchases
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ABSA MOBILE CHANNELS
45
COMPETITORS MOBILE CAPABILITIES
46
MOBILE BANK ON WHEELS (BOW)
47
TAKING BANKING TO THE PEOPLE
DAVEYTON
48
SALES FULFILLMENT PROCESS
High level sales fulfillment process
LG forwards all of the documents through to the Sales Support clerk at the Sales Support Hub/branch
Sales Support clerk (SS) receives the documentation and records deal in register/DSAS
SS screens customers against CASA and opens account on FBSS
SS checks quality and compliance adherence of all documentation
SS captures the Record of Advice online and executes all other administrative duties
SS calls the LG / customer and informs them that the account has been opened. Account no provided.
LG makes contact with or sets up an appointment with customer
LG meets or interacts with customer and prompts the customer to disclose financial request/need
LG interviews customer for sale: Connect, Needs analysis, present solutions handle objections and cross sell
Customer accepts the proposal/s and completes the application forms, Record of Advice and obtains all supporting documentation. Customer signs all the required documents (Close the deal).*If available - issue card and pin mailer
START
Customer encouraged to activate accountUpdate records in register / DSAS
LG monitors progress of account activation and updates commission claim form once account is activated
LG sends original documentation to Hub/branch
Activated account verified & Commission paid to LG
49
Fixed Salary
LG (ELB)
R 3000 / £194
Commission per Prod Team based targets
Other Commission None
Products sold Transactional Unsecured Lending
Investments Basic Insurance
Commission payable per LG Team
100% to target (195 NET products per team), R3000
per LG
Quarterly Bonus None
Quarterly Incentive (stretched target)
110% to target ( 216 NET products per team), R3000 per LG
125% to target ( 243 NET products per team), R9000 per LG
OTE Monthly Ave Salary R7000/ £467
Fixed vs. Variable remuneration split
43%
COMPENSATION STRUCTURE
OTE: Opportunity to EarnOTE: Opportunity to Earn
50
Fixed Salary
LG (WPB, Core Middle Market)
R3000/ £194
Ave Commission per prod R122 / £ 8
Other Commission R1000 / £ 65 for Value %
Achievement 100% to 124%
Products sold Transactional Savings & Investments
Unsecured-lending Value Adds
Commission payable 100% to target (60 NET products pm), R8000 for
Volume and R1000 for value
Quarterly Bonus R8000/ £517 VOL (125% to target)
R4500/ £291 VAL (125 to target)
R11000/ £712 VOL (150% to target)
R9000/ £582 VAL (150% to target)
Quarterly Incentive (stretched target)
None
OTE Monthly Ave Salary R 10 320/ £ 688
Fixed vs. Variable remuneration split
29%
COMPENSATION STRUCTURE
COMPENSATION PHILSOPHY
COMPENSATION PROGRESSION CHART
0
5000
10000
15000
20000
25000
30000
LG (ELB) LG (WPB) LG (ACQUISITIONBANKERS)
LG SEGMENTS
CO
MM
S R
AN
D V
AL
UE
RAND
• Allows for progression from ELB segment to Retail Affluent segment
• Succession planning for MS
• OTE: Opportunity to Earn as MS performs
GRCB Lead Generator Conference, London, 18 &
19 May 200852
PRODUCTION VOLUME - QUARTER 1 PERFORMANCE
Overall substantial increase in Performance – Cumulatively 112% to Target
111,395
124,431
1,10556,00344,6821,03337,42448,15980317,96831,590Total
77,47596,12580438,05233,90374926,05938,09254013,36524,130ELB
6,4974,332702,8172,393632,461902611,2191,037IB
10,9717,9421015,5652,4091013,8972,734891,5092,799AB
16,45216,0321309,5695,9771205,0086,4311131,8753,624WPB
TargetActualActiveSalesStaff
TargetActualActiveSalesStaff
TargetActualActive SalesStaff
TargetActual
YTD - Q1MarchFebJan
111,395
124,431
1,10556,00344,6821,03337,42448,15980317,96831,590Total
77,47596,12580438,05233,90374926,05938,09254013,36524,130ELB
6,4974,332702,8172,393632,461902611,2191,037IB
10,9717,9421015,5652,4091013,8972,734891,5092,799AB
16,45216,0321309,5695,9771205,0086,4311131,8753,624WPB
TargetActualActiveSalesStaff
TargetActualActiveSalesStaff
TargetActualActive SalesStaff
TargetActual
YTD - Q1MarchFebJan
Keys:
• WPB – Workplace Banking
• AB – Acquisition Bankers
• IB – Islamic Bankers
• ELB – Entry Level Banking
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000
WPB
AB
IB
ELB
TOTAL
Actual Target
NB: Productivity Includes Value Added products
GRCB Lead Generator Conference, London, 18 &
19 May 200853
PRODUCTIVITY RATIOS - QUARTER 1 PERFORMANCE
Jan-08 Feb-08 Mar-08YTDAVE
Average Volumes sold per day per MS (WPB) 1.5 2.6 2.4 2.1
Average Volumes sold per day per MS (Acquisition Banker) 1.4 1.3 1.3 1.3
Average Volumes sold per day per MS (Islamic Banking) 0.8 0.7 1.8 1.1
Average Volumes sold per day per MS (ELB) 2.0 2.4 2.2 2.2
Average Product Volume Trends Positive – sound monthly product volumes per MS
Total Ave Product numbers sold p.m. per MS PERSON
Acquisition Bankers 26
Islamic Bankers 22
WPB Consultants 42
ELB Lead Generators 44
PRODUCTIVITY RATIOS
0
0.5
1
1.5
2
2.5
3
JAN FEB MAR
MONTHS
AV
ER
AG
E P
RO
DU
CT
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LG (WPB)
LG (AB)
LG (IB)
LG (ELB)
TECHNOLOGY & ENABLEMENT
Optimal technological enablement solution per segment
Technology Solution Targeted Areas Medium Term View
Laptop Kits
• Core Middle Market• Retail Affluent• Islamic Banking• Mobile Sales Units• Bank on Wheels
• LAUNCHED
• Introduce alternative devices
Digital Pens
• LAUNCHED • Implement nationally
Other Devices
Card and Pin Mailer
• All NBS sales environments
• Full implementation
Status
• Entry Level Banking• ESPs• WPB Kiosks
• Implement nationally
• LAUNCHED
• Entry Level Banking • IT LITE SOLN LAUNCHED
Fulfilment Portal
• All NBS sales environments
• INTEGRATION • Implement ED
ENABLEMENT PLATFORM
Technological Integration ensure a seamless end to end Sales fulfilment process
InfoPath Client
InfoPath Client 2003
Web Browser
InfoPath Designer 2003
Consultant
Scan
Backend
Systems
Fax
Mobile Sales Portal
NonBranchSales
Support
AbsaContactCentre/
AGO
Telemarketing
Appointment Booking
Calendar Service
Calendar synchronization
Forms Repository
Retrieval of application and
support documents
3rd Party Vendors
CompCorpSybase
Fax2E-mail
Employee Portal
SalesConsultantDatabase
ManagementInformation
Form Repository
Note: Integrated Service – accessed by AGO, NBS Support hubs, other SBU’s and ES & WPB Sales Consultants
KEY LEARNINGS
Solid progress despite challenges experienced
– Volume production– Variable compensation– Segmented sales force– “First Job Application” employees and
productivity– Delivery channel positioning, e.g.,
External Sales Points– Bank on Wheels highly successful in
Student Market and event based interventions
– Positive productivity and performance trends
– Contribution towards “New to Bank” core customer growth
– Poor performance in Value targets– Developing an accurate MI system to
track commissions and daily production– Attaining volume in certain targeted
product lines– Bedding down technology enablement– Investment Consultants with limited
transactional products to sell in targeted market
– Lag in addressing poor performance due to bedding down of overall DSA model approach
Positive Experiences Learning Curves
57
LG BUSINESS SIMULATION PROGRAMME
Action Planning
& Execution
Pre-work (Product
Knowledge Tool)
Do
Reflect
Apply
Plan for action
Simulation
Analyze/present
Feedback/coaching
Application
3 Simulated cycles
Description:LG manage the performance of a Sales team through 3 cycles by following a 6 step process:• Step 1: Teams receive goals per product and campaign• Step 2: Teams come up with actions and ideas on how to create opportunity i.e. prospecting, networking as well as looking at events in certain areas which might offer opportunities• Step 3: Teams react to events and make service choices which will influence the amount of potential sales going into their sales funnel• Step 4: Teams analyse customer profiles and put together a Value Proposition which is presented and rated. The ‘client sales interaction’ determines the number of products in the sales funnel (cross-selling opportunities)• Step 5: All team members fill out documentation and indicate compliance requirements per product for those products they managed to sell in step 4. Faulty applications leads to lost sales• Step 6: Teams receive final actual revenue and compare it to targets. Action plans are put in place for the next round
Workshop
58
SALES PERFORMANCE MEASUREMENT PROCESS
Sales consultant complete application with customer
Sales consultant submits application to respective Sales Support Hub for processing.
Sales support Clerk receives application, conducts quality check and then proceeds to captures application on FBSS. Sales support clerk then captures details and status of application on DSAS.
DSAS system generates productivity reports based on what has been captured at the Sales Support Hubs.
•Productivity by sales consultant•Productivity by Sales Support•Productivity by Region•National Productivity.• Number of Sales per Sub-Product
The following status of the application can be captured on DSAS.• Approved• Pending• Declined
Ma
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ub
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:
• D
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• L
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Sales consultant to complete application with customer and send application through to sale support hub for processing on FBSS and capturing on DSAS.
Detail report of all applications processed and approved is extracted from the DSAS system by the regional manager for the respective region and validated for accuracy by the second working day of the month.
Regional manager to send validated report to national sales manager by the 3rd
working day of month.
National sales manager to collate all validated regional reports into one spreadsheet, verify for correctness and submit to Business Analytics department by the 4th working day of the month.
Business Analyst from Business analytics department to use spreadsheet received from National sales manager to verify against the Absa data warehouse for activated status of transactional, unsecured lending, insurance, savings and investment products. Only valued added
products will not be verified for activated status.
Commission will then be calculated for all verified activated sales (in the case of value added products – only applications captured as approved on DSAS - will commissions be calculated for).
Once the business analyst has completed the commission calculation, business analyst to send commission claims to General Manager (External Sales and Operations) for validation and sign-off by the 7thth working of the
month.
General Manager (External Sales and Operations) to sign-off commission claim and send through to Quest for payment of commissions to direct sales agents by the 8th
working day of the month.
SALES COMMISSION PROCESS
1. Background
MOBILE E-COMMERCE
OVERVIEW M-COMMERCE• Internet banking has received the most coverage over the last decade
• Movement towards greater mobility as mobile phones become more sophisticated
• These phones can know handles more advanced applications & services
• Banking via mobile phones appeals to consumers on multiple fronts
• Mobile phones also serve as an efficient vehicle for making contactless payments, P2P transfers, providing greater security protocols and storing in-depth preference information
• Various software platforms for mobile phones and other devices will allow the consumers to use the web
• Over the next decade the movement towards Mobile Banking will rapidly increase
• Other technology developments will affect retail banking and these include:• Growing broadband at lower costs• Webcams via Web 2.0 will reach consumers at home• VoIP • Instant message systems• Social Network (face-book, twitter, etc)• Thin client capabilities makes remote access easier
• Level of security protocols and applications is constantly improving
• Technology is allowing banks to be more cost effective and efficient
1. Background
MOBILE TRENDS 2011
• Year of the smart phone even for the ‘dumb’ user
• Apps vs. mobile content internet will continue
• Mobile marketing spend will grow significantly (USA to exceed the 1 billion mark)
• Mobile will increasingly prompt customers to interact with their physical environment
• Companies will invest first in convenient services for customers, acquisition will come second
• Casual gaming will continue to lead the mobile change for content
• Term mobile will mean a lot more than mobile phones (I-Pad)
1. Background
BEST PRACTICE FOR SUCCESSFUL M-BANKING STRATEGY
• Implement SMS based M-Banking capabilities that focus on the most relevant and actionable alerts for customer today
• Plan for the future
• Anticipate the increased need to intelligently reach out to customers across multiple communication channels (SMS, email, voice, and instant messaging)
• Select a service provider that enables and implements a cost-effective delivery of SMS capability & function
1. Background
MOBILE GROWTH DRIVERS
1. Background
SOCIAL NETWORKS
1. Background
MAIN FEATURES OF MOBILE COMMERCE
• Ubiquity – anywhere
• Immediacy – anytime
• Localisation – GPS specific to a location
• Instant Connectivity – General Pocket Radio Service (GPRS), means mobile service are online and always on
• Pro-Active Functionality – tailor making to suit the needs of a user, IOW, a user can choose what he wants to view or receive on his mobile
• Simple Authentification Procedure – electronic chip found in mobile devices call Subscriber Identity Module (SIM) using a PIN
1. Background
SERVICES IN MOBILE BANKING
1. Background
Account Operations Account Administrations
Money Transfers Changing accounts
Bill payments Blocking lost cards
Money Transfers Cheque book requests
Subscribing insurance policies Administration
Account Information Product Information
Balance enquiries Product Information
Statement requests Product Pricing
Threshold alerts Interest rates
Branch/ATM locations FOREX rates
Helpline
Credit card info
MOBILE BANKING AND CORE TARGET GROUPS
a) The Youngsters:• The segment of the 14-18 years old• Technology savvy and willing to experiment with innovative products/services• On the move, demand ubiquitous, anytime service• Represent future prospects• Hence marketing must be used to cultivate this group
b) The Young Adults• Technology & innovation friendly• Financially not very strong• They also will need to be cultivated through marketing• Students to beginning of a career
c) The Business People• Age group 26-50 years • Important segment to mobile banking• Well educated & economically well-off• On the move, hence carry mobile devices• They demand financial services and products
1. Background
MEASURING EFFECIENCIES OF MOBILE BANKING
1. Background
TRENDS IN USERS (2007, EUROPEON UNION BANKS)
1. Background
SMS BANKING• Using mobile phone via TEXT to conduct banking functions:
• Balances• Mini-statements• Transfers (M-Pesa)
• Different to telephone banking
• Helps users keep track of banking activities anytime, anywhere, any place
• Some do not charge for SMS banking (South Africa – cross-sell/retention)
• Most to all phones are capable in using SMS banking
• SMS alerts, keeping you informed on daily transactions
• Costly, complex when looking at future growth, developments
• A comprehensive mobile messaging solution must be able to abstract, send, and receive messages from multiple channels, including mobile devices, landlines, & IVR systems
• The capability implies the need for a MULTI-MODAL messaging architecture
• Multimodal architectures help banks cost effectively deploy SMS messaging services without upgrading existing IT infrastructure or adding support personal
• This allows users/customer to perform simple transactions (balances, statements, transfers…etc)
• Current focus is on SMS functionality, over WAP & app type solutions
1. Background
CONSUMER PREFERENCES FOR SMS BANKING (2007, US)
1. Background
MULTIMODAL MESSAGING ARCHITECTURE• Enables a single messaging strategy• The platform uses application programming interface to abstract, track, transmit and receive messages from
multiple channels• Customer profiles determines where/which messages go• Routes messages via multiple networks• Switches between communication channels until customer receives the message
1. Background
SESSION 3: Branch Strategy
WHAT DO CUSTOMERS WANT??????
Most customers prefer to purchase in the branch
There are groups that are moving away from branches, and towards alternative channels, mobile sales force, cell-phone banking, internet
Excellent service
Convenience and accessibility
Feedback
Customers want products that are understandable and easy to transact with
Convenience&
Understanding the needs
Customer Centric View
OBJECTIVES
Launch a differentiated retail branch
A multi-channel approach to support the accessibility and convenience for customers
To ensure that channels are profitable and sustainable
To ensure that our channels offer superior customer service
Keep our approach simple
Doing things right the first time
77
SWOT ANALYSIS
Strengths
New Bank that has the flexibility to innovate and re-invent the market place
NO legacy issues
New, innovative and strong retail management team
Cross border roll-out, implementation and execution
Achieve critical mass, representation
Weaknesses
IT and Ops infrastructure
Speed to execution
Recruitment of appropriate skills
Not an established brand
Opportunity
Creating a well differentiated bank in a concentrated bank
Creating a NEW and leading brand
Product innovation and leadership
Critical Mass
Offer convenience, accessibility
Diversification on the income streams
Threats
Global Economy
NOT well diversified
Budget constraints
Operational support at HQ
Lack of buy-in, change management
78
KEY DIFFERENTIATORSBranch design 24 hours zone concept incorporating enquiries, statement printing, ATM banking, internet bankingZone concept (transaction managed in zones, teller combined with enquiries) Queue management system (QMS)Meeter greeter Innovation in the area of enquiries
Customer relationship managementEvery customer has a relationship manager (the size of the portfolio depends on the customer segment)One person responsible for customer cross sell and up sell activitiesPortfolio targets connected to performance management systemIntroduction of standardized CRM programs for a) new customers, b) customer life cycle tree and c) product activation, usage and balance build.
Service quality managementSLA´s for branches and call center introduced and measured from the beginning
Documentation & Data workflow managementUsage of electronic documentation and data workflow system for all customer products application, contracts, filing system (no paper, minimize operation risk)
PartnershipsIncreasing BancABC market share, profitability and critical mass
QMSCR2
CRMMIS
WFM
DistributionProduct
79
ATM
KIOSKHUB N SPOKE MODEL
3rd
PARTYPOS
BancABC
@WORK
SUITESDSA
Bank on
Wheels
MessagingCall
Centre
CELLPHONE
BANKING
INTERNET
Branch
Flag branches provide the brand equityVarious Channels offer convenience and accessibilityThis helps achieve critical massEducating clients on various channelsIncreasing usage and transaction
80
COMPETITORS BANKS –DIAMOND BANK
81
COMPETITORS BANKS –DIAMOND BANK
82
COMPETITORS BANKS –DIAMOND BANK
83
COMPETITORS BANKS –DIAMOND BANK
84
INTERNATIONAL BANKS
85
INTERNATIONAL BANKS
86
INTERNATIONAL BANKS
87
INTERNATIONAL BANKS
88
INTERNATIONAL BANKS
89
INTERNATIONAL BANKS
90
INNOVATIVE BRANCH DESIGN
91
1. 24 hour zone2. Meeter Greeter3. Merchandising zone4. Cash zone5. Consultation6. Customer zone7. Back office & Cash management (Safes)8. Staff area
CUSTOMER JOURNEY THROUGH A BRANCH
92
BRANCH CATEGORISATION & TYPES
Branch Categorisation: Category 1 (Universal, 500 -800 sq/m) Category 2 (Retail Branch, 300-499 sq/m) Category 3 (Retail Outlet, 150-299 sq/m) Niche Branches, below 149 sq/m, Mortgage centre, SME, Private Suite,
Islamic Banking Suite,etc Outlet Types:
Mortgage centre SME centre Universal Branch Retail Branch Retail Outlet Niche Branches Kiosk (large, medium, small) Bank on Wheels Bank in a Box
93
DETAILS OF THE OUTLETS
LINK.....
94
BRANCH SERVICESType of branch Cash in Cash out Account opening
in the systemCheque collection
Statements
Enquiries Forex BC DC
Kiosk On-line
Mini branch
Retail outlet
Retail branch
Universal branch
SME Center
Mortgage Center
95
PORTFOLIO MANAGEMENT
Each customer assigned RM RM linked to segment portfolio:
Top Mass/Mass Combined Retail Affluent SME
Size of the individual portfolio depends on the Sub segment the customer belongs to.
The number of the relationship officers per branch will be reviewed and planned on yearly basis and will be based on target market potential/number of NEW customers (acquisition), branch targets portfolio size
Obtain competitive information on what the top 3 competitors are doing on the portfolio size and allocations
96
Sub segment Portfolio size per 1 RM
Catchments area /target potential Reporting line Other comments
Mass 800 – 1.000 Based on Sales Activity PlanGrowth per year
Branch manger (disciplinary and functionally)
Segment Mass & Top Mass will be covered by Senior RM Mass until the critical mass is reached
Top Mass 400 – 600 Based on Sales Activity Plan Growth per year
Branch manger (disciplinary and functionally)
Affluent 250 – 400 Based on Sales Activity Plan Growth per year
Branch manger (disciplinary and functionally)
For launch we will have standalone RM for affluent
SME 400 – 600 Based on Sales Activity Plan Growth per year
Branch manger (disciplinary and functionally)
If the target segment is not sufficiently big the branch manager will substitute the role until the portfolio reaches 80 customers.
Professionals (if stand alone position)
250 – 400 Based on Sales Activity PlanGrowth per year
Branch manger (disciplinary and functionally)
If target segment is not sufficiently big the SME RM will substitute the role until the portfolio reaches 100 customers.
Corporate (in a universal branch)
TBC TBC TBC
Corporate (serviced from country HQ)
TBC TBC TBC
PORTFOLIO MANAGEMENT
97
BRANCH STRUCTURES
Universal Branch (15-35)Following org chart shows all possible position covered in a Universal branch. In year 2009 following position will be merged:Segment Professionals will be covered by RM SMESegment Mass & Top Mass will be covered by Senior RM Mass until the critical mass is reached
98
…BRANCH STRUCTURES
Retail Branch (15-25)Following org chart shows all possible position covered in a retail branch. In year 2009 following position will be merged:Segment Professionals will be covered by RM SMESegment Mass & Top Mass will be covered by Senior RM Mass until the critical mass is reachedBulk cash will be installed only if required for servicing Corporate customer.
SESSION 4: Alternative Banking Strategy
100
ALTERNATIVE DISTRIBUTION
“Segmented AD Channel focus providing multiple options of delivery”
101
ALTERNATIVE DISTRIBUTIONType Design Number
of StaffFunctionality Fulfilment Segment Location
Kiosk Large
Rectangular or 2 options as supplied by vendorMerchandisingPoint of SaleLCD screen2 X workstations(hardware, printer, scanner, fax, camera)2 staff chairs4 customer bar stools/tablesATM-smallPOS device
2-4 DSA’s Account openingBasic EnquiriesATMMini statementLeads ManagementCheque collection
On-line Desk topPDAScannerPrinterBio-metric readerPin readerCamera
Personal Bank segments
Large corporate offices or Government departmentsOr where there is high traffic volume.
Kiosk Small
Rectangular, Square, Oval, or 2 options as supplied by vendorMerchandisingPoint of Sale1 X workstations(hardware, printer, scanner, fax, camera)1 staff chairs2 customer chairs/tablesATM-smallPOS device
2 DSA’s Account openingBasic EnquiriesATMMini statementLeads ManagementCheque collection
On-lineDesk topPDAScannerPrinterBio-metric readerPin readerCamera
Can be segmented based on identified cooperative, alliance, etc
Shopping centresRetail outlets, via cooperativesCorporate officesWhere there is high volume traffic in defined segments
Bank on Wheels
Vehicle that caters for security, transport and flexibilityMerchandisingPoint of Sale2 X workstations(hardware, printer, scanner, fax, camera)3 staff chairs4 customer chairs/tablesATM-small, rampPOS deviceLCD, DVD comboBullet proof glassGazeboGeneratorSatellite linkPA, sound system
3DSA’s, 1 Driver
Account openingBasic EnquiriesCash depositWithdrawalsMini statementLeads ManagementConsumer Education
On-lineDesk-topsScannerPrinterBio-metric readerPin readerCamera
ALL segments based on deployment strategy
All dedicated sites which caters for security and customer experience
102
ALTERNATIVE DISTRIBUTIONMobile Sales Units
1X Vehicle1X GazeboMerchandisingPromotional materialLaptop, Copier, scanner, camera1X Gazebo2 tables2 staff chairs4 customer bar stoolsConsumer EducationLCD, DVDPA, sound system
8-10 DSA’s, 1 driver
Account openingBasic EnquiriesMini statementLeads ManagementConsumer EducationAcquisition strategy
Off-lineLap-topsPDACopierScannerCamera
Events ONLY
External Sales Points
1X GazeboMerchandisingPromotional materialCopier, scanner2 tables2 staff chairs4 customer bar stoolsPA, sound system
2 DSA’s Account openingBasic EnquiriesMini statementLeads ManagementConsumer EducationAcquisition strategy
Off-lineLaptopsPDACopierScannerCamera
Events ONLY
Bank in a BOX
40ft or 20 ft Container1X large ATMServer RoomSatellite (GPRS) linkRectangular or options as supplied by vendorMerchandisingPoint of SaleLCD screen2 X Sales workstations(hardware, printer, scanner, fax, camera)2 X Teller workstations(hardware, printer, scanner, fax, camera)1X safe2 staff chairs (sales)2 staff chairs (tellers)2 X customer bar stools (teller)1X GeneratorAir-con unitMunicipal requirements, and contractor to lay concrete foundation
1X Supervisor2 X Tellers2 X relationship Managers2 X DSA’s
Account openingBasic EnquiriesATMMini statementLeads ManagementCheque collection
On-line Desk topPDAScannerPrinterBio-metric readerPin readerCamera
Personal Bank segmentsOrSpecific segment, e.g.SME, Mortgage, etc
Before branch opens in a designated area/region.Rural areasWhere sourcing locations becomes challenging
Other As recommended by vendor
103
LARGE KIOSKS
104
SMALL KIOSKS
105
BANK IN A BOX
106
BANK IN A BOX
107
The purpose of the CC is to optimise use of telephony to acquire new, cross sell existing customers and to support external sales staff
The purpose of Direct Sales is to acquire business outside of the traditional branch
network and provide customers with additional and often non traditional channels to do
business with ABC
The purpose of BancABC@Work banking is to provide
convenient unique value propositions for the employees
in the workplace
Direct SalesCall Centre
Direct Sales “Bank conveniently
at home/community”BancABC@work–
“Bank convenientlyat work”
DS
A:
To
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ass
/ Mas
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DS
A:
Wo
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Ban
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AD
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ales
Tea
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Inb
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Sal
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Lea
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Man
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DS
A:
Ret
ail A
fflu
ent
Leads Management“Managing daily
activity”
DS
A:
SM
E
Development of compelling and competitive value propositions for workplace and direct salesProviding qualified leads to the DSA teams
MOBILE SALES/MARKETING FORCE“Segmented Sales Force to support Retail Branches”
108
MOBILE SALES FORCE KPA’S
Key focus areas Worksites – BancABC propositions for the employer and employee Group Schemes – Homogenous groups with common interests Urban communities - mobile sales and service Support for new branches – before and after outlet opening Staffing of non traditional outlets – kiosks/containers/forecourts Direct sales opportunities –
Investments/transactional/insurance/personal loans/Credit Cards/Debit Cards
Support for Events Optimise the use of Contact Centres for sales Optimise leads and referrals for all segments, products
109
MSF TARGET MARKETS
Target Market: Leads: Cross and up-sell
Existing individual corporate customers across segments Smaller employees that do not warrant on-site workplace banking
solutions Direct Selling Activities: New Business
Potential new individual customers across all segments Employees of corporate and small businesses Niche groups e.g. Youth, Students, Seniors, Medical Graduates,
Retail Affluent, etc. Support for new branch openings and events Community events Professional bodies
110
BANK@WORKProvision of banking services to company employees at their place of work. The work place banking
channel must be a online banking operation catering for types of branch transactions and services. Cash handling in terms of over the counter deposits and withdrawals is not available through the work place
banking channel (ONLY via ATM).
111
Employers:
• Improving and extending existing benefits/packages
• Little or no extra cost for the employer
• Relief of the employer administration
• Employers participation offers employees a convenient way to bank
• Assists with worker productivity
• Could be used as a benefit to lock-in the worker
Financial Services Provider:
• Access to a larger potential regular earning customer base
• Partner with key employers to provide bulk services to lower cost and improve customer experience
• Can offer concessions and lower costs to customers on basis of lower delivery cost
• Access to payroll deductions• Cross-selling opportunities• Grow with the customers
Employees:
• Employees can access financial services products and services on a beneficial basis
• Convenience for employees• Advice on more complex
financial service offerings• Usually provides access to a
larger range of products• Packages can be customised• Financial literacy training on
site enables employees to make informed choices
112
Banking SolutionsBanking Solutions
Transactional Solutions Lending & Credit Solutions
Savings & Investment Solutions Risk Protection Solutions
Value Added ServicesValue Added ServicesFinancial EducationFinancial Education
Dire
ct S
ales
& S
ervi
ce D
eliv
ery
Dire
ct S
ales
Age
nts
and
Alte
rnati
ve
Poin
ts o
f Pre
senc
e
E-Channels
Internet, Telephone, Cellphone and ATM
Banking SolutionsContact Centre/Telephony
BANK@WORK
113
SALES ACTIVITY PLANNING PROCESS
What is the market Potential, per
segment
Activities plannedto penetrate
the target marketATL, BTL
Planned campaigns
KPI”S
Leads Management Process
Completed 3-4 months advance
END
IN M
IND
END
IN M
IND
114
SALES MANAGEMENT PROCESS
PLANNING
Planning:
• Collecting market and portfolio information
• Analyzing information to prioritize target markets and customers
• Deciding on goals• Identifying resources• Identifying and scheduling
appropriate marketing actions• Forecasting expected results• Tools:
SWOT Analysis Prioritization of target markets Branch marketing calendar Planning specific marketing actions Sales Campaign Plan
115
ACTIVITIES
Activities:
• Setting appropriate individual goals in terms of activities and goals
• Coaching and developing people• Preparing scorecards• Evaluating specific marketing
actions• Providing and using information
on Performance standards• Tools
o Referralso Sales pipe-lineo Sales boardo Evaluating specific marketing actions
SALES MANAGEMENT PROCESS
116
PORTFOLIO
Portfolio:
Using a range of measures to track performance and these include
• Portfolio size and portfolio growth
• Customer portfolio• Quality indicators• Profit and loss• Other MIS• Analyzing these measures to
develop effective action plans for the future
SALES MANAGEMENT PROCESS
117
SALES
Sales
• Setting appropriate individual goals in terms of activities and goals
• Coaching and developing people• Preparing scorecards• Evaluating specific marketing
actions• Providing and using information
on Performance standards• Tools
o Referralso Sales pipe-lineo Scorecard plannerso Sales boardo Evaluating specific marketing actions
SALES MANAGEMENT PROCESS
118
SALES MAP
ACTIONX
FREQUENCY=
RESULTS
PLANNING ACTIVITIES
PORTFOLIO SALES
119
PLANNING ATTRACTING CLOSURE
Where do we get the business, target market, propensity
for business
What campaigns to attract the target market
ATLBTL
Needs analysis to closure
ENTIRE SALES MANAGEMENT PROCESS
SESSION 5: E-Channel Strategy
121
E-CHANNELS – WHERE DO THEY FITC
us
tom
er
Customer Data & Insights
Customer Segments
Customer value propositions
Blue Gold SMEPrivateSilver Corporate
Dis
trib
uti
on
C
ha
nn
els
Customer Service
Branch POSWebsite Cellphone CCCInternet BankingATM
Sales and Channel Management
ASD
Messaging
Pro
du
ct Personal
• deposits, savings• Transactional• Consumer finance• Cards• etc
SME• deposits, savings• Transactional• Consumer finance• Cards• etc
Corporate• deposits, savings• Cash management• Transactional• Forex• etc
122
INTEGRATED CHANNEL MANAGEMENT DELIVERED BY CR 2
123
GUIDING PRINCIPLES (SET 1/3)
1. Activation of e-channel access is part of the initial customer on-boarding process
2. ATM placement will form an integral part in the approach to physical distribution planning (hub & spoke model)
• Routine transactions will be migrated from the branch to maintain high branch
productivity levels
3. Our own customers can transact on our own ATMs (Us-on-Us transactions) and on competitor ATMs (Us-on-Them transactions)
4. Our objective is to provide sufficient capacity and distribution to meet the requirements of our own customers (match our ATM capacity to our own customer transactions (Us-on-Us+Us-on-Them)) at an acceptable cost-to-income ratio (target 50%?)
5. To cover the transaction distribution continuum, thus increasing coverage and convenience for customers, we will provide cost effective solutions to cover the range
124
6. Other banks’ customers’ transactions on our ATMs are viewed as a bonus because we have no control over them
7. Each branch, kiosk and bank on wheels will have at least one ATM model8. Our target average transactions per device per month are as follows:
• Cash-back at POS device : 800 -1 500• Cash dispensing ATM – low volume : 1 500 – 3 500• Cash dispensing ATM – medium volume : 3 500 - 5 500 • Full-function ATM : 5 500 and aboveThis will maintain our cost-to-income ratio at 50%?We want our customers to do banking on our own ATMs
9. If the average number of transactions per device per month exceeds the target because of growth in our own customer transactions (Us-on-Us+Us-on-Them) transactions, we will increase capacity to match the growth
GUIDING PRINCIPLES (SET 2/3)
125
10. ATM functionality is divided into 2 categories; • Short transactions (cash and others) will be restricted to cash dispensing ATM. This is
our cash-and-dash proposition• Long transactions and other non-cash transactions will be available on the statement
printer machines11. The priority in ATM placement is as follows:
• Servicing our customers• Supporting customer acquisition
12. Outsourcing the ownership of ATMs is not recommended because It is less profitable than the Bank owning and running its own ATM service
13. Customers will have a holistic view of their relationship (products and services) with BancABC14. All leads, new product sales and transaction revenues earned will be credited to the domicile
branch
GUIDING PRINCIPLES (SET 3/3)
126
OBJECTIVES - A BALANCED SCORECARD APPROACH1. Deliver cost effective growth in ATM transactions aligned to customer
growth – target cost-to-income ratio of 50%?2. Complement the branch by lowering cost of operations (reduce cost-to-
income ratio)
Increase Non- Interest Income
FN1
Fin
an
cia
l
Control Operating Costs
FN4
1. Customer aligned ATM distribution/coverageLocation of ATMsAccessibility/visibility of sites
2. Deliver customer-friendly ATM interface and functionality resulting in less than 1% system failed transactions
3. Deliver innovative, value-added services on ATM 4. Deliver 98% ATM service availability
Innovative Tailor Made Solutuons
CT2
Excellent Customer
ServiceCT1
Cu
sto
mer
Inte
rnal P
rocess
Continuous Customer Feedback
IP1(b)
Intimate Knowledge our
CustomersIP1(c)
Increase IT UptimeIP3(d)
Develop Products that meet
Customers needsIP2(b)
1. Deliver customer-friendly ATM interface and functionality resulting in less than 1% system failed transactions
2. Deliver one-view of customer, one-view of back (holistic relationship of customer with XYC)
3. Conduct customer feedback sessions every month and act on the feedback 4. Deliver 98% ATM service availability
127
ATM DISTRIBUTION PLANNING PRINCIPLES All branches will have at least one cash dispensing ATM, statement printer and an
Internet terminal All kiosks will have a cash dispensing ATM Remote/Off-site ATM placement is guided by:
Bank card penetration Customer transaction behaviour aligned to:
Retail activity: shopping malls, regional shopping centres, suburban centres, goods markets etc
Transport nodes like airports, train stations, taxi ranks Convenience locations – service stations, casinos, selected convenience stores Schools and hospitals
Competitor activity (transactions “lost” to competitor acquirers) Queue lengths at existing ATM sites Bank@work requirements (Corporate banking propositions)
128
ATM BUDGET PLANNING PROCESS
The customer growth estimates is the sole motivation for growing ATM numbers
Other factors to consider in the budgeting process are: Performance of the ATMs already in the network Amount of money paid away as interchange fees (BancABC customers transacting on
other-bank ATMs) Branch and kiosk rollout plans
Bulk ATM orders are preferred for economies of scale purposes and minimising lead-time to delivery from vendor(s)
129
OFF-SITE ATM DEPLOYMENT PROCESS
Site identification Validate
Secure
-Field analysis
-Retail activity
-Branch network
-Foot flow
-Competitor activity
-Security (building, cash servicing etc)
-Accessibility
-Visibility
-Power and communications
-Rentals
Prepare
Install ATM
-Site plans
-Construction
-Communication
-System entries
-Service providers
Commission
ATM
130
ATM OPS REQUIREMENTS Key operational requirements
Key requirements are:
ATM Installation and commissioning (signage
ATM service availability (system working) / ATM service monitoring
Cash loading (no cash-out situations)
Hardware / software updates/error rectification
Patch updates and ATM campaign downloads
House-keeping
Payment clearing and settlement
Payment query resolution (payment tracing etc)
Cash balancing on a regular basis
131
ATM MONTHLY TRANSACTION DISTRIBUTION CONTINIUM
0
200
400
600
800
1 000
1 200
1 400
500 800 1000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10000
11000
12000
> 13000No of potential transactions / site / month
No
of
po
ten
tial
sit
esN
o o
f p
ote
nti
al s
ites
132
MARKET STATS – VISA TRANSACTIONS
133
MARKET STATS – NO OF VISA ATMS
245
382
99
111
217
284
415
180
172
238
0 50 100 150 200 250 300 350 400 450
BOTSWANA
MOZAMBIQUE
TANZANIA
ZAMBIA
ZIMBABWE
YE 2007 Q2 YE 2008 Q2
134
MARKET STATS- NO OF VISA ATMs
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
BOTSWANA MOZAMBIQUE TANZANIA ZAMBIA ZIMBABWE
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Interchange revenue Share of BancABC ATMs -end 2009
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
BOTSWANA MOZAMBIQUE TANZANIA ZAMBIA ZIMBABWE
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Interchange revenue Share of BancABC ATMs -end 2009
135
POINT OF SALE REQUIREMENTS
Merchant and end-customer service convenience
Key requirements are:
Long-term merchant relationships
Secure IT systems
Financial needs analysis/guide to financial solution
Quick turn-around times (product application, queries etc)
Payment tracing
Payment clearing and settlement (interbank payments)
136
Informational objectives
• Cost-efficiently supports the overall E-Channels strategy
• 24-hour, convenient provision of relevant information to all BancABC stakeholder groups
• Provides a platform for sales and customer lead generation
WEBSITE OBJECTIVES
137
INTERNET BANKING
Transactional, cross-sell
Aligns to the E-Channels mandate through the provision of remotely accessible (through the internet), secure, 24-hour, convenient, cost-efficient non cash-based daily banking services to the Bank customers, optimising channel usage and facilitating the sale of new accounts as well as lead generation Key requirements are:
Secure IT systems
Financial needs analysis/guide to financial solution
Quick turn-around times (product application, queries etc)
Peace of mind
Payment tracing
Payment clearing and settlement (interbank payments)
138
CELLPHONE BANKING
Informational, transactional, leads generation
Aligns to the E-Channel mandate through the provision of remotely accessible (through any cellphone handset device),
Secure, 24-hour, convenient, cost-efficient non cash-based daily banking services to the bank customers
Optimising channel usage and facilitating the sale of new accounts as well as lead generation
139
END OF DAY 1
HAVE BANKS COMPLICATED WHAT
CUSTOMER SIMPLY WANT
Day 2 Session 1: Segmentation
Case Study & Exercise
Session 2: CRM & Process ManagementCase Study & Exercise
Session 3: Performance MatrixCase Study & Exercise
Session 4: Fraud & Security MethodsCase Study & Exercise
Session 5: Branding, Social Media
140
SESSION 1: Segmentation
142
OVERVIEW CHICKEN or THE EGG… Chicken or the Egg scenario, which comes first Strategy or Segmentation?
Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, spending habits, and so on. Using segmentation allows banks to target groups effectively, and allocate marketing resources to best effect
Traditional segmentation focuses on identifying customer groups based on demographics and attributes such as attitude and psychological profiles
Value-based segmentation, on the other hand, looks at groups of customers in terms of the revenue they generate and the costs of establishing and maintaining relationships with them
Customer segmentation procedures include: deciding what data will be collected and how it will be gathered; collecting data and integrating data from various sources; developing methods of data analysis for segmentation; establishing effective communication among relevant business units (such as marketing and customer service) about
the segmentation; and implementing applications to effectively deal with the data and respond to the information it provides
143
SEGMENTATION GROUPS
DowngradingPreferredGrowthPattern(Upgrading)
144
SEGMENTATION GROUPS - CORPORATE
PreferredGrowthPattern(Upgrading)
Downgrading
145
SEGMENTATION METHODS
Geographic variables
Demographic variables
Psychographic variables
Behavioral variables
146
SEGMENTATION CRITERIA - INDIVIDUALS
Geographic Variables
Will ABC use them?
DemographicVariables
Will ABC use them?
Psychographic Variables
Will ABC use them?
Behavioral Variables
Will a bank use them?
Region Yes Age/DOB Yes Personality ?? Product use Yes
Country Yes Gender Yes Lifestyle ?? Benefit sought Yes
Density/Suburb Yes Income Yes Value ?? Loyalty Yes
City/Town Yes Education Yes Social class ?? Credit use Yes
Postal code Yes Family size Yes Interests Yes
Occupation/Profession
Yes Account bal. Yes
Nationality Yes Memberships Yes
Religion Yes Risk profile Yes
Language Yes
Marital Status Yes
Race Yes
Residential status Yes
147
SEGMENTATION CRITERIA - CORPORATES
Criteria Will ABC use the criteria?
Number of employees Yes
Industry Yes
Location Yes
Loan size (Use of credit facilities) Yes
Balance sheet size Yes
Company type (CC,Pvt) Yes
Profitability ??
Turn over ??
148
SEGMENTATION CODES/IDENTIFIERS
Segment Primary segment Code Sub segment codes
HNI/Affluent 100 101+
Rising Affluent 200 201+
Middle Class 300 301+
Large Corporates 400 401+
Small to Medium Enterprises 500 501+
Small Enterprises/SelfEmployed Professionals
600 601+
149
STEP 1
Define the full potential of the market
STEP 2
Assess the value of each customer
STEP 4
Assess which group of customers to target based on potential size, potential revenue (Life Time Value) and share of voice
STEP 3
Stratify or group customers based on their potential mix of usage
STEP 5
Assess per group of customers the unique attitude or behavioral variables of customers
STEP 6
Create segments of customers with the same needs values and wants
Assess the relative importance of each customer in terms of either the number of customers or usage•through sales visits / Market Data•What is the market we serve & who are all the customers who may benefit from our product?Are we missing anycustomers (I.e. those traditionally served by our competitors)?
•From where are the new customers coming? (I.e. what is the referral pattern / who refers? Based on what? •Identify in each stratus the new Life Time Value of the customer •Which competitors are targeting these same customers?
•Define the characteristics of each segment (e.g. average size/potential, key purchasing factors, ways to influence decision making)•what is the size of each segment?•Is it homogenous?•How do salespeople interact with customers in the market and what are the key market drivers?
•Ego driven, $ driven, convenience driven, service driven, scientific driven, etc...
Select the segmentation which most effectively groups customers with the same needs Your segmentation should offer each :
•Measurability - the size & purchasing power of the segments must be measurable
•Accessibility - it must be possible to reach & serve the segment
•Substantiality - the segments must be large & profitable
What questions do I need to answer and what do I need
to do?
How many customers are there in the defined market (validate source)
CUSTOMER SEGMENTATION PROCESS
150
CUSTOMER SEGMENTATION PROCESS
What questions do I need to answer and what do I need
to do?
STEP 11
Develop for each customer in targeted segments a plan with an objective , tactics and action plans.
STEP 7
Validate the selected segmentation approach
STEP 8
Target the most attractive segments based on potential size and potential revenue
STEP 9
Which product / brand is being used by each customer in target segments (validate sources)
STEP 10
Decide on productpositioning for each of the targeted segments
•How easy will it be to convert customer in each segment segment to our products?•How responsive is the segment to marketing actions?•What would be the cost of serving the segment?•How are the competitors targeting these customers?•Evaluate attractiveness of each segment
· Check whether needs are being addressed
How to overcome the hurdles for using our products ?
• Assess cost for each action plan and decide whether it is feasible, to target the segment
•Review regularly whether the needs and wants are satisfied profitably
•Review regularly the size of the segments, the needs and wants of each customer.
Consider supporting evidence for your segmentation
Does the market really work the way you have segmented?
•Are the most successful competitors taking a different segmentation approach?
•What market data do you need to confirm current segmentation?
151
MANDATORY FIELDS - INDIVs
Personal details Title Surname Middle names First name Gender Date of birth Residential status Home address Home telephone number Period at this address Postal address Country of residence Nationality Business Telephone Cellphone number
152
MANDATORY FIELDS - INDIVs
Personal details cont,
E mail address ID number Passport number Expiry date Driver’s licence number Marital status Number of dependents Spouse’s name Spouse’s employer and address Preferred method of communication
153
MANDATORY FIELDS - INDIV
Employment details Current employer and address Type of employment Occupation/Profession Occupation Title Length at current employer Monthly income Method of payment Banking details
154
MANDATORY FIELDS
Previous employment details Name of previous employer Address of previous employer Occupation title
Next of kin Address of next of kin Relationship Declaration Signature and date
155
OPTIONAL FIELDS - INDIVs
Level of education Family size Religion Home language Race Social memberships Interests/hobbies How did you come to know of ABC? Consent for ABC and associate companies to market other products
156
MANDATORY FIELDS - CORPORATE
Company Name Company address Postal address Telephone numbers Nature of business Contact person Contact details (e mail,telephone,cell phone) Designation of contact person Company registration number VAT registration number Directors
157
SEGMENTATION MONITORING TOLLS
Assessment
Observation
Statistics
158
SEGMENTATION MATRIX
Retail BankingBusiness line Corporate Banking
SegmentPersonal Banking
Profes-sionals
SMEBanking
Privatebanking
Companies Non Gov.OrgGovernment
OrgFinancial
institutions
Sub Segment
Blue(Mass)
Gold(Affluent)
Maincustomer
Silver(Top Mass)
FamilyCluster
DoctorDentistPharmacistVets
LawyerNotaryOther
GeologistsArchitectsEngineers
Sports-PersonsJournalists
Micro enterprises
AccountantsAuditorsBus.& Fin.Consultants
Small enterprises
Medium corporate
Large corporate
Medium size enterprises
Multinationals
Local BanksForeign Banks
LeasingInsuranceMicroFinance
Pension FundsAsset Mgrs
ChurchesEmbassiesTrusts
Donor OrgPvt SchoolsPvt Hospitals
Pvt UniversitiesMBA Schools
ProvincesRegionsTowns
Cities
Gvt HospitalsGvt Schools
BuildingSocietiesInvestment BanksOther FIs.
Charitable OrgCivic BodiesOther NGOs
Gvt UniversitiesOther Gvt Orgs
Business line Retail BankingBusiness line Corporate BankingRetail BankingBusiness line
159
CATEGORIES
Group Definition
Child 0-12 years
Youth 13-18 years
Student 19-28 years
Employees Any applicant who has an employment contract.
Housewives Non working spouse
Unemployed Unemployed (not self employed)
Self employed Any applicant who generates their own income for survival
XYZ employees Anyone employed by ABC
Associated Company employees Employees of ABC sister companies
Pensioners Former ABC employees who have retired
Gvt employees Any persons employed by Government (Civil servants)
Executives COOs, CEOs, CFOs, MDs, Executive Directors, GMs, FDs,
MBA/MBL/DBL Any MBA/MBL/DBL graduate
Professionals See list of professionals
Politicians Any persons holding a position of authority within a Political Party (Full time)
Pensioners Any person who has retired from formal employment and receives a pension.
Civil Leaders Civil Society Leaders, e.g. Mayors, Councillors, Judges, Magistrates,
Other
160
INDUSTRIES & SEGMENTS
Real state Developers Estate Agents Prop.Mgrs Construction Prop.Inv.Cos
NGOs Donors Churches Embassies Civic Groups
Education Universities Colleges Schools Kindergartens MBA Schools Libraries
Fin.Services Local Banks Foreign Banks BuildingSocieties
Insurance Leasing Asset Managers
Traders Food Clothing Building Materials
Drugs Supermarkets Households
Agriculture Crop Farming Livestockfarming
ForestryAnd Logging
Horticulture Grains andOils seeds
Fertilizercompanies
Mining Precious stones
Quarry Mining Natural gas
Media Publishing Houses
Media houses Advertising Broadcasters
Transport Car Dealerships
Fleet owners Car plants StorageAnd Transport
Car hire ContainerLeasing
Tourism Hotels Lodges Airlines Travel agents Restaurants Safari Camps
161
SEGMENTATION CRITERIA – SME & CORP
Segment Sub segment
Loan sizeNo of
employees TurnoverSector if
applicablefrom up to from up to from up to
SME
Micro enterprises $0 $10 000 0 10 $0 $40 000
Small enterprises $10 001 $100 000 11 25 $40 001 $400 000
Medium sizeenterprises $100 001 $250 000 26 100 $400 001 $1 000 000
Corporate
Medium corporations $250 001 $500 000 101 250 $1 000 001 $2 000 000
Large corporations $500 001 $1 000 000 251 500 $2 000 001 $4 000 000
Multinationals $1 000 001 501 $4 000 001
162
SEGMENTATION CRITERIA – PERSONAL & PVT
Segment Sub segment
Income Liabilities Assets
Group if applicablefrom up to from up to from up to
Personal banking
Blue $0 $1 500 $0 $10 000 $0 $20 000
Silver $1 501 $5 000 $10 001 $20 000 $20 001 $50 000
Gold $5 001 $20 000 $20 001 $100 000 $50 001 $200 000
Private banking
Platinum $20 001 $40 000 $100 001 $500 000 $200 001 $1 000 000
Super Rich $40 001 $500 001 $1 000 001
SESSION 2: Integrated Approach
164
OVERVIEW
An INTEGRATED APPROACH will demand:
Long-term view Overcoming the SILO effect Establishing a WFM approach Using technology to ones advantage Refining processes Change management (LINK....) Refining product Team work A sense of urgency/culture of innovation An incubation phase for NEW PRODUCTs Modular approach (build on your success....CAPITEC BANK IN SA) Centralised DATA base and management
ARE THE CUSTOMERS HAPPY
165
INTEGRATED APPROACH SILO EFFECT
PRODUCT DIVISION 1
PRODUCT DIVISION 2
PRODUCT DIVISION 4
PRODUCT DIVISION 3
LARGE RETAIL BANK
BRICK n MORTAR BRANCH
CALL CENTRE
E-CHANNELS & M-COMMERCE
VIEW OF CLIENT
VIEW OF CLIENT
VIEW OF CLIENT
VIEW OF CLIENT
NOT INTEGRATEDNOT INTEGRATED
INTEGRATED CRM APPROACH
• Process and workflow management will enable a consistent customer experience.
• It will ensure faster turnaround times for account application and fulfillment.
• There will be fewer mistakes due to the standardized and automated processes
• Accurate customer reporting and real time tracking.
• Excellent service management with issue tracking and escalation.
• Personalised relationship management to all customers due to availability of customer information and relevant sales and interaction prompts.
• A comprehensive “single view of the customer” so that our employees can engage effectively and credibly with customers.
• A single system interface that makes user adoption and training much easier and more effective.
• More productive sales and opportunity management due to customer portfolio allocation and rigorous sales management.
• Predefined sales campaigns and CRM programs to increase cross sell and up sell as well as closed loop marketing i.e. we will be able to accurately measure the success of our initiatives.
• Improved collections and back office effectiveness due to allocation and tracking of tasks.
• Document management which will minimise the use of paper as well as reduce the storage and archiving costs.
CHANNEL IMPACT VIA A CRM SYSTEM
Manage Manage CampaignsCampaigns
Retain & Retain & GrowGrow
Customers Customers via a channel via a channel
Effective operationalEffective operational& channel & channel
managementmanagement
ManageManagechannelchannel
riskriskManage Manage
New New BusinessBusiness
Manage Credit Manage Credit Application & Application &
FulfillmentFulfillment
Building Customer Building Customer LoyaltyLoyalty
Monitor SLAsMonitor SLAs
Manage staffManage staffproductivity productivity
Manage service Manage service requestsrequests
Document Document management & management &
workflowworkflow
Manage & Manage & store KYCstore KYC
Manage Manage Verification and Verification and
Security Security PerfectionPerfection
Segregation of Tasks & Segregation of Tasks & Role Based Access + Role Based Access +
audit trailaudit trail
Enhanced Enhanced Knowledge of Knowledge of
CustomerCustomer
Customer
INTEGRATED CHANNEL VIEW/ARCHITECTURE EUPHORIA
Data warehouse
Mobile
Email / Internet
Retention & Acquisition Units
Web servers
Core bankingsystems
DataIntegration
Customer Central Data Store
CRMMart
Application servers
CR2
Flexi cube core banking
system
Staging 1
Staging 2
Staging 3
Extract Transform
Load
Customer Segmentation
Snap shots & History
Analytical Engine's
Exploration
StatisticalModeling
Other
Lead Generation
by State
Change, Events
Triggers or other
Techniques
PredictiveModeling
Business Rules
Optimization
Marketing
BalanceTouch Point
Delivery
Relationship
Maximize LongTerm
Value &Interest
Opportunity
Best OfferRight timePreferred Channel
CustomerTouchPoint
TouchPoint
Integration
Communication
Campaign Management
Contact &Interaction
Management
MarketingData Mart
FiltersExclusions
Application Servers
Web Server
Mail & SMS Server
Messaging
Customer BI and Reporting CRM Strategy
Direct
Control
OLAPBI Tools Reports
Group Single view
Holistic - 360 Customer View
Single Point of Truth for Customer Information
Single source Extract
Auditable
Traceable
Meta Data
Inte
gra
tio
n
Response Feedback - Closed Loop
Explorationwarehouse
Flat - Unstructured
Flexible
Call centre
Snail mail
Branch
CRM
CreditMart
Internetbanking
Blackberry
3rd party sites
Card management
SINGLE VIEW OF CUSTOMER
FINANCIAL PROFILE
KYC
Interaction monitor
The “Learning Relationship” – Ongoing service excellence
Save me time
Customer tells you what he wants
You tailor your product, service, or elements
associated with it
FEEDBACK
The more effort the customer invests, the greaterThe more effort the customer invests, the greatertheir stake in making the relationship work.their stake in making the relationship work.
Now the customer finds it more convenient to remain loyal, rather than Now the customer finds it more convenient to remain loyal, rather than re-teach a competitorre-teach a competitor
WORKFLOW COMPONENTS
[SRWF010] SR Queue Assignment Workflow- Notifies Customer- Assigns Unresolved SRs to Queues based on data captured
[SRWF300] SR SLA Monitor Workflow- Monitors SR End to End- Alerts/Escalates if SLA not met
[SRWF020] SR Queue Monitor Workflow- Monitors SR in Queues yet to Be Assigned an Owner- Alert/Escalates if SLA not met
[SRWF100] SR Resolution Workflow- Generates Specific Activities Based on Business Rules- Manage the Sequential Completion of Activities
[SRWF110] SR Resolution Monitor Workflow- Monitors SRs Assigned to an Owner not yet Solved- Alerts/Escalates if SLA not met
[SRWF200] SR Closing Workflow- Task Original User to Resolve SR; or- Auto-resolve the SR
Standard SR SLA Monitor
Alert
Custom SR SLA Monitor
Alert
Standard SR Customer
Notification
Custom SR Customer
Notification
Standard SR Queue
Assignment
Custom SR Queue
Assignment
Logged Ready to be Queued
Queued AssignedWaiting for
3d PartyOther
Statuses...Solved Resolved
Standard SR Q.Monitor
Alert
Custom SR Q.Monitor
Alert
Standard SR Q.Monitor Escalation
Custom SR Q.MonitorEscalation
Standard SR SLA Monitor Escalation
Custom SR SLA Monitor Escalation
Standard SR SLA Monitor Time Tracker
Custom SR SLA Monitor Time Tracker
Standard SR Activity
Manager
Custom SR Activity
Manager
Standard SR R.Monitor
Alert
Custom SR R.Monitor
Alert
Standard SR R.MonitorEscalation
Custom SR R.MonitorEscalation
Standard SRClosing
Workflow
Custom SR Closing
Workflow
SESSION 3: Performance Matrix
176
OVERVIEW MEASURE WHAT IS IMPT
CHANNELS SUCCESS will lie in the ABILITY to: ATTRACT/ACQUIRE RETAIN CUSTOMERS CROSS-SELL UP-SELL IMPROVE ON SERVICE UNDERSTAND WHAT IS NEEDED?????? MEASURE PEOPLES PERFORMANCE DETERMINE EFFECIENCIES (SLA’S) & EFFECTIVENESS (PROFIT) CUSTOMER COMPLAINTS
Are we making PROFIT
SESSION 4: Fraud & Security Methods
178
OVERVIEW SHOW ME THE MONEY... Fraud, theft....have one thing in common.....PEOPLE/STAFF/BUSINESS PARTNERS Systems, process, checks & balances are important themes in building an effective
fraud management & monitoring system Fraud is dynamic and migrates across channels Integrated, multi-layered solutions better protect banks and customers assets Fraud prevention must be customer friendly ZERO tolerance culture (e.g. Nedbank in SA) Buildings alerts for the bank, and customers Risk management & Compliance Lack of integration increases FRAUD & RISK to a bank Technology (SMS alerts, SMS Pin) Getting sophisticated, & syndicated Flaws in manual fraud detection
179
PREVENTION IS BETTER THAN CURE DONT CATCH A COLD!! Staff education – they are the front line
ZERO tolerance culture (e.g. Nedbank)
Continually improve on the policies & processes
Perform regular audits
Leadership – visibility
Investing in proper technology, cameras, etc
Creating a hotline (staff/customers)
Improving on authentication (layered approach – relate to PIN authentication SA)
Invest in proper fraud solutions
Creating a hierarchal approach on manual checks, balances and approvals (relate to case study when I set up 5 Ops centres to manage 2000 Mobile staff, low fraud)
Detection models when parameters have changed in a process, system, value etc
Improve on resourcing
Customer education (phishing & ATM Fraud)
SESSION 5: Branding
181
OVERVIEW Overall brand equity
ATL & BTL
Campaign Management
Branding in a multi-Channel approach
Branding & segmentation
Costs vs. ROI
Customer experience vs. The Brand
Various mediums including social networks
Simple messaging (Capitec SA)
182
IN SUMMARY
SS - - STRATEGYSTRATEGYII - - IMPLEMENTATIONIMPLEMENTATIONMM - - MONITORINGMONITORINGP -P - PEOPLEPEOPLEL - L - LEARNING FROM YOUR MISTAKESLEARNING FROM YOUR MISTAKESE -E - EVALUATINGEVALUATING