webinar slides segment one
DESCRIPTION
Webinar Slides Segment OneTRANSCRIPT
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Segment of OneCustomer segmentation in retail
banking
28 March 2012
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Ronan McCaughey, Editor-at-large, Retail Banker International
Introduction
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Amit Dua, Associate Vice President and Head of EMEA, Finacle, Infosys
Davy Warnez,Transversal Portfolio Manager
Business Lines & Group Functions,BNP Paribas Fortis
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Amit Dua, Associate Vice President and Head of EMEA, Finacle, Infosys
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Segment of ONEFrom Identical Individuality to Individual Identity
Amit DuaAssociate Vice President Head - EMEA, Finacle
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Who is the Emergent Consumer of Financial Services?
What key factors are shaping the Customer Engagement model in the banking business?
How should banks Innovate and ensure a Leadership position tomorrow?
Strategic considerations for banks today
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Tomorrows Customer has little in common with Todays or Yesterdays
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Its About ME!
I Trust Your Advice
You Are Always
Working For Me
Make It Easy For
Me
You RememberWhat I Have Told You
My Experience Fulfils On Your
Brand PromiseYou Fit With My
Lifestyle
I Do Not Need To Tell You
Everything; You Work Out My Needs From Others
You Recognise MyLoyalty
You Stay Out Of My Way Until I Need Your Help
You Understand Me, My Circumstances And My Needs
Paradigm Shift in the Customer Context
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Key factors shaping the Customer engagement model tomorrow
Todays Context Tomorrows Imperative
Segmentation based on Demographics, Ethnicity, Geography
Product-Oriented Customer Communication
Traditional Distribution Channels
Usage of Campaigns & CRM
Reactive Decisioning
Segmentation based on Individuals Aspirations, Attitude, Behaviour
Customer-Tailored Product Communication
Modern Tools like Social Media
Usage of Analytics & Predictive Modelling
Real-time Decisioning
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Superior customerUnderstanding
Building the relationship is all about offering a Superior Proposition to the Customer
Great Innovation is builtfrom SOFT CUSTOMER
INSIGHTS not data!
LOOK OUTSIDE current environment
Superior product& services
Communication is as important as product and
service!
Superiorcommunication
Superior customerProposition
Customers buy BENEFITS ,not products!
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Tesco Clubcard Proactive offers based on transaction behaviour
Superior customerUnderstanding
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Facebook places I know where Me is, who Me is with and will give Me and friends, the best possible deal
Superior customerUnderstanding
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Understanding the Customer at every stage of the relationship lifecycle
CustomerRetention
CustomerDevelopment
CustomerAcquisition
V
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Evolution of Customer Relation over time
Campaign Performance Management
Lead GenerationPredictive Response ScorePerformance Tracking
Product Holding AnalysisNext Best product OfferingCustomer Migration
Cross Sell,Re-profiling & Product Holding
Campaign Performance Management
Recency,Frequency Monetary ScoreChannel PreferencesProduct Usage
Campaign Performance Management
Profitability AnalysisCLTV forecasting
Predict Customer Default & Prepayment Track Delinquency movement
Customer Risk Behavior Analysis
Track Customer SatisfactionTrack Service Competency
Service RequestAnalysis
Sentiment AnalysisLogin frequency/ activity
Social & Web Analytics
Attrition ScoreAttrition TrackingLoyalty Profiling
Attrition & Loyalty Analysis
Superior customerUnderstanding
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Offering Superior Products and Services
Design
Distribute Develop
Deliver
Customer
Compliance and Regulation
SuperiorProducts & Services
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ICICI bank added new customers cost effectively and rapidly via online a/c opening.
DBS bank provided personalized ATM card & cheque book
Agility andPersonalisation
DBS bank gained 360 unified view of their customers across 300 subsystems to provide a superior integrated experience
Disparate customer data to enterprisecustomer insight
Emirates bank bundled product offering
Single input for multiple products
Single input for multiple products
Examples of Superior Products and Service
Maximum usageof Online model
ANZ bank extended several branch- intensive features to online mode e.g. redrawing from home loan
Customer Service InnovationsPowered by Finacle
SuperiorProducts & Services
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Achieving Superior Customer Experience is the first step in the journey The journey of a bank in playing the Advisory Role
Product Centric
One size fits all
No differentiation
Simple and uniform pricing
Limited channels and no
differentiation
External
Segment Centric
Segmentation and
grouping based on
homogeneous attributes
Segment based analyzed
pricing
Cross Sell/Up sell
Central
Customer Specific
Customer specific offering
Relationship pricing
Tacit information and online
real time intelligent
interactions
Customer empowerment
Customer experience led
relationship management
Right sell
Partner
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THANK YOU
www.infosys.com/finacleThe contents of this document are proprietary and confidential to Infosys Limited and may not be disclosed in
whole or in part at any time, to any third party without the prior written consent of Infosys Limited.
2012 Infosys Limited. All rights reserved. Copyright in the whole and any part of this document belongs to Infosys Limited. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in
whole or in part, in any manner or form, or in any media, without the prior written consent of Infosys Limited.
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Davy Warnez,Transversal Portfolio Manager Business Lines & Group Functions,BNP Paribas Fortis
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~3.7 million customers
Mobile banking: first mover in Belgian market
Largest network in Belgium (>1k branches)
~18k employees in Belgium
Belgian market leader
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Corporate & Public Banking
Corporate & Investment Banking
Retail & Private Banking
Organized around 3 business lines
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Define your marketPartition market into groupsGroups with similar preferencesDistinct from other groupsBig enough to matter Small enough to be cohesiveIdentifiable and accessible
Next steps: Targeting & Positioning
Segmenting - Theory
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MARKETS Retail & Private BankingConsumerPRODUCTS PrivateProfessional
Daily Banking
Save & Invest
Lending & Protect
Mass Personalized
Wealth
Personalized Personalized
Classic segmentation value based (e.g. AuM)
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Big challenges financial industry:
- Negative perception of financial industry
Big challenges market leader:
- Commoditization => risk of price war - Clients can easily change banks
- Remain main bank (vs niche players)
Part of solution: CUSTOMER FOCUS/EXPERIENCE
- Do not miss new trends/technologies- Become main bank (vs loyal customers)
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Motivational segmentation
I seek to build a constructive relationship with my bank/s
I only seek a purely functional relationship with my bank/s
I rely on my bank/s
I challenge my bank/s
Partnership seekers
Dependentfaithful
Distant functionalists
Competent challengers
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Motivational segmentation: some lessons learnt
However, difficult to identify (not in dBase)
Inconsistent over all product groups
Thinking from customer perspective
Creation of personas makes it tangible
Focus not only on articulated tangible needs
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(Life) event segmentation
Lost & stolen cards Opening/closing customer relationship First salary Marriage/divorce Birth/death
Increase customer satisfaction by reviewing customer journey on key moments
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(Life) event segmentation: some lessons learnt
Differentiate service level based on customer value (should remain profitable)
Focus on full experience (pre & post)
It is not all about delight
Buy in from all departments is key success factor
It is measurable, identifiable & actionable
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Conclusions
Still mainly classic value based segmentation
Motivational segmentation is for the moment more used as conceptual thinking exercise; life event segmentation easier to implement
Perform sanity check: Measurable
AccessibleActionable
Profitable
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Amit Dua, Associate Vice President and Head of EMEAFinacle, Infosys
Davy Warnez,Transversal Portfolio Manager
Business Lines & Group Functions,
BNP Paribas Fortis
Ronan McCaugheyEditor-at-largeRetail Banker
Interactive
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This webinar will be available for replay at Retail Banker Interactive from 29 March 2012. You will receive an email containing a link to the webinar slides and recording.
The next webinar in this series is Customer Loyalty- A multi channel approach and will take place on the 25th of April 2012
Please register by following the link on www.retailbankerinteractive.com