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Lessons in marketing excellence 4 faded flame iimk Lessons in marketing excellence 4 faded flame iimk Presentation Transcript

  • TEAM: FADED FLAME IIM KOZHIKODE Sector – BFSI Company – Kotak Mahindra Bank Limited Anshul Kumar Arnab Guha Mallik Abhisek Paulanshulk15@iimk.ac.in arnabgm15@iimk.ac.in abhisekp15@iimk.ac.inPh: 8086087963 Ph: 8943994677 Ph:8943707444
  • OBJECTIVE Kotak Mahindra Bank wishes to establish itself as the pre-eminent bank of choice for the mass affluent of India. Kotak Mahindra’s offering of 6% on savings account has been a marketing success met by increased savings account deposits. However, it was not the only bank to do so. Competitors like Yes Bank and IndusInd Bank have also increased the offering on savings account post the RBI deregulation. In spite of other banks still offering 4% on the savings account, Kotak Mahindra has not been able to match them yet in terms of market share and popularity. In such a competitive scenario, depending on just the PRICING strategy is not sufficient. what is needed is the improvement and opportunities in the other levers of the marketing mix of the financial products and services that it offers, so that it is able to differentiate itself from the competitors in the coming future.Primary Research Overview Modern day banking customers are taking greater control of their banking relationships. They are ready to switch banks and demand improvements. Banks in turn need to re-evaluate their strategies and the way they interact with their customers. T hey need to give their customers greater flexibility, choice and control and focus on consumer needs and engagementSample Overview Number of respondents – 79 24% of the respondents were between the age 21-25 years, 35% in between 26-30 years, 21% between 31-35 years and 20% greater than 35Consumer Survey Insights 1. Bank loyalty is high in consumers , however most are unwilling to shift from/change their current bank 2. Trust is the most important factor while opening a new bank account. Previous band image and an expert opinion plays a pivotal role here 3. Personal Networks and trusted financial communities are the most trusted source of info to be updated about bank offerings 4. Social media is the most used platform for knowing a bank’s products and services
  • Consumer Survey Insights1. Communication clarity is the most important factor to improve 1. Most consumers (approx. 76%) prefer branchless banking satisfaction among the customers (entirely online)2. Most consumers seek expert advice on complex products as a 2. Accessibility (presence of ATMs included) and personal part of standard service offering relationship are the most important factors in keeping loyalty3. Major consumers value cash back on credit/debit cards as a with a bank main source of rewarding their loyalty 3. Internet banking and ATMs are the most influential banking4. Niche customers want their loyalty to be rewarded by experiences premium offerings (something different from standard) 4. Ease of Use/Navigation in internet banking is the most valued by customers IMPLICATIONS AND INTERPRETATION Customer should be allowed to shape their own experience Shift marketing from “push” to “pull” • The growing importance of word of mouth, reference group and the waning power of direct selling have implications for banks’ marketing strategies. • The strategy should be Pull i.e. turning their satisfied customers as advocates. They can also influence online affinity groups as marketers by letting them select and shape the communications they receive. Develop flexible loyalty programs • Banks need to capitalize on customers’ growing enrolment in loyalty programs. • Most customers enjoy financial rewards. Although costly, such rewards offer huge potential benefits in loyalty and advocacy. • Banks should tailor programs for affinity groups and let customers choose rewards based on their value to the bank.Some more figures76% of the respondents were male. 79% of the respondents earned between 5 to 15 lacs of salary annually41% of the respondents have changed their primary account earlier
  • IMPLICATIONS AND INTERPRETATIONFocus on customers need, give them more flexibility Move from multi-channel to omni-channel distribution Focus on Customer Care• Customers care more about convenience than about channels. • Banks must provide relevant information and advice. They• Banks need to look beyond multi-channel toward a fully integrated banking experience that also need to address grievances of the consumers in a combines the advantages of physical branches and in-person interactions with the short time frame. information-rich digital channels. • Hence banks need to be responsive and receptive• Omni-channel distribution leverages customer data gathered from branches, website visits, social media and elsewhere. •Banks should encourage customers to •The use of cutting-edge technology Technology will be key use digital channels whenever possible. is vital to all these implications.. Seamless integration with digital and other •Banks should determine which services •Technology can also help to maintain customers want to handle through inexpensive media all focused on customer needs intimacy and sustainable relationship branches and encourage — not force — as customers move towards digital other transactions to move to digital banking and greater self-service.. channelsMake low-cost digital channels Use innovative technology to delivercustomers’ preferred choice the retail bank of the futureThe 3 PILLARS DELIVERING VALUE to CUSTOMERS OUR DECISIONS Focus on customer Reward Focus on mobile engagement through customers, keep banking Social Media them engaged Use SMS Social Media Improve technology Loyalty Programs Use social media to Focus on loyalty services to make banking easier programs not simplify Build a strong only for present Bring out new relationship through customers but technologies improved Customer also new customers Online account care opening
  • Interaction Plot of the Private Sector Banks in the Social Media Space Interactivity level 3 From the measures the interaction plot engagement of 2.5 and the social banks like replying to grade table, we Interactivity Level customers, and other 2 see KOTAK lies interactive campaigns carried below other out 1.5 competitive banks in the social media 1 space.  Great No of channels include the 0.5 opportunity, tim total no of social media sites e to improve. employed by the bank like 0 twitter, Facebook, blog etc. 0 1 2 3 4 5 6 7 8 No of Channels Kotak meanwhile has only 16868 followers Banks No of Channels Social Grades Social Media Grades for the on Facebook and 2 HDFC BANK 8 3.06 Private Sector Banks in India meaningful Facebook ICICI BANK 8 2.81 apps about offers and The Social Media Grades shows how donate for a cause AXIS BANK 5 2.28 active the banks are in the social (check appendix for CITI BANK 5 2.02 media space detailed comparison) YES BANK 6 1.97 Calculated on a scale of 5, the KOTAK MAHINDRA 5 1.62 interactivity level of the banks in Twitter handle not utilized muchSTANDARD CHARETERED 4 1.8 Facebook, Twitter, LinkedIn, YouTube for all banks opportunities for and Blogs are taken into more interactions and INDUS IND BANK 4 1.24 consideration engagement ING VYSYA BANK 3 0.79 SOUTH INDIAN BANK 3 0.72 No of channels represents the bank’s presence in any social networking Data Taken from simplify360 KARNATAKA BANK 3 0.57 sites social media analytics platform © BANK OF PUNJAB 2 0.36 InRev Systems 2011
  • Social media is an opportunity that can no longer be ignored Negative word-of- mouth spreads fast Build Connections & Network especially in the social • It’s FREE, but you must invest time To Listen & Learn media and it is • No event needed, no walls to stop you There are thousands of intelligent people and essential to engage • Engage with customers, understand them, foster companies sharing ideas, links, blog proactively with such relationships through innovative channels. posts, websites, case studies, opinions and more customers It is essential to To Market, Show Expertise & Transparency engage with InfluencersSocial Media is full of them. customers to attract •Social media allows a broadcast medium for you to communicate & market • Content Producers: They are new customers as • Promote your own web or blog content Tweeters, Bloggers, highly social, willing to link, talk well as to understand • Announce new services / products about and contribute. • Offer specials or promotions • They communicate and market for you the needs of • Provide visibility into your operation customersOpportunity Assessment Matrix THE VALUE OF SOCIAL MEDIA??  It’s not a silver bullet, it’s how you use it.  Social media should not be isolated or stand alone. We must Integrate all of our marketing tools to work TOGETHER and even pass through each other ROI for social networking, creating widgets, blogging etc. have fairly high ROIs
  • SOCIAL MEDIA STRATEGYAccording to Forrester Research 55% of consumers want ongoing conversations with companies and brands. 89% said they would feel more loyal to a brand if theywere invited to take part in a feedback group. We as a team suggest some SOCIAL MEDIA STRATEGIES AND EVENTS TO DRIVE LOYALTY, ENGAGEMENT andREVENUEFacebook apps 4 Customer Care APP: (KOTAK MAHINDRA CUSTOMER CARE: “WITH YOU, FOR YOU” ) We suggest the increase in apps on FB to 9 from 1 as of now  FACILITIES (Promise to get back within 7 working days)  Click on the Customer Care app and you are taken to a page with the following options: Login into bank account app on FACEBOOK 1 1. Check balance 1. Online form: The customer fills in his details and elaborately describes the problem 2. Check transaction history 2. GUI: Enter location in dropdown menu to get free hotline Gives flexibility, ease and choice to consumers. They decide the nos. of the customer care of that particular city way to log into their bank account Customers do not have to search on the internet for specific city nos., they can go to Facebook and easily find KOTAK MAHINDRA ASSISTS: A page where information about out. Better service + Flexibility2 banking, ATM banking and all other functions/basic information 3. Give the name of a customer care officer and her/his are explained as FAQs. The page will also contain information email id and ask customers to write to her about Kotak’s various products and services 4. If not satisfied someone higher in authority (Name, email  Simplifies banking services for consumers and designation)  Promotion about their own services: FREE More personalized services; shows that Kotak cares more about the well- being of their customer and how highly they are valued Payments APP: Currently present only through net banking  DEDICATED “ASK_KOTAK” TWITTER PAGE: Customers to ask or 3 extend to both mobile banking and Facebook i.e. both the note down their grievances against Kotak Mahindra mobile app and Facebook app to contain payment options  They can track problems of customers as and when tweeted.  Rationale: gives the consumer more flexibility and Replying with a solution helps in building a better image in the choice. Becomes so easy for a customer to pay bills minds of the consumers  TWITTER still untapped by banks from wherever he/she feels comfortable from.  LIVE CHAT (CONSUMER SERVICE)  Mobile banking payments will allow him to pay bills 1. Through facebook on the go as and when remembered 2. GOOGLE+ HANGOUT  Same footing as other competitors All Kotak will need is a dedicated team of about 10 people handling  App containing different payment options: Enter customer requests who are not even afraid to apologize! Leverage details and pay “WITH YOU, FOR YOU” SLOGAN 1. Mobile, 2. DTH, 3.Insurance premium, 4. Electricity, 5. Gas, 6. Taxes and 7. Mutual funds Detailed comparisons of banks: Social Media Page Appendix
  • SOCIAL MEDIA STRATEGY Link the current communication strategy on SUBBU’s saving tips to offers and apps on Facebook Get deals APPs: (discounts or cash back offer) BUILD AND5 IMPROVE UPON THE ALREADY PRESENT SERVICES  dining : Select outlets e.g.  Make a status update  Tag us  Enjoy upto 30% savings on restaurants etc. Now  shopping : Online shopping through ecommerce portals  Offers + mobile service e.g. Earlier 1. Make a purchase 2. Register like get jabong 5767676 and get vouchers  Travel: Railways, buses and air. Tie ups with travel booking sites like make my trip and Expedia etc.  Entertainment : Movie and concert tickets  others(gifts) The figure on the right side shows the current marketing campaign highlighting the great offers on The Deals are primarily directed at the Loyalty Program E-Commerce platform earlier Subbu advised to shop online now Kotak is giving the same Increasing the offers on display to drive loyalty offers only to save MONEY Using Social Media to promotes such deals and Linking the 2 communication easy building and leveraging the successful campaign using encouraging use of mobile app and SMS increases SUBBU as an advisor engagement6 App to calculate savings 1. Anti-smoking campaign: Calculate the amount you can save on cigarettes link to Subbu’s Saving tip 2. Save electricity campaign: link to Subbu’s Saving tip Subbu is used in marketing communication to talk about savings. Leverage the same to promote about social and environmentally relevant topics. Creates better brand imageThe figure shows the transition  communication earlier on the FB page to nowSame message and source to highlight relevant issues
  • SOCIAL MEDIA STRATEGY OTHER PROMOTIONS • Announce new branch openings on Facebook7 Find us/Store Locator • Giving away Monthly vouchers worth Rs 1000 – Login to Kotak Mobile during the offer period Apply for recruitment: easy way to screen and inexpensive – Do any of the following transactions and stand a chance to win*:8 • Transfer funds, Recharge pre-paid mobile, Pay utility bills or Pay credit card bills9 Video repository showing usage of ATMs and other basic • Weekly contests on Facebook needs – Play a movie quiz every Wednesday to win couple movie tickets for every new Friday releaseFB CONTESTS to drive engagements and Revenue“SPENDING IS FUN” contest!! KOTAK MAHINDRA “Time to keep playing” Contest!!! Create a special app for a monthly contest: • Target audience: 18-25 year old males!! Duration 3 months; Customers tor register on the • Rationale: A lot of youth open bank accounts at this stage and are well aware application of offers and tech savvy too Customers have to start spending with their Kotak • What is it?? : An online communities of youth where they take part in a variety Mahindra Bank debit card to collect coupons. The app of events such as discussions, quizzes, polls about banking, problems they are will be interactive to show the no. of coupons collected facing, changes they want etc. Every Rs500/- spent in a single transaction gives you a coupon. Every incremental Rs500/- on the same receipt 1. They get funds for each such activity which is measured by a tracker in the app. gives you another coupon. Every 6 such coupons gives a 2. There will be a referral option where one can refer the app to his friends and chance to win one of 8 Samsung Galaxy S2/ Nokia Lumia post on their walls. If his friends register, the customer gets 500 points as funds 800 smartphones to be given away monthly for every such referral. Collect 12 such coupons to complete a card. The 3. With the funds one can redeem a prize like Xbox 360s, PS3s. Samsung Galaxy customer with the maximum no of cards will win a laptop S2s, Nikon DSLRs or an IPAD. 4. Every participant with over 10000 points are given a free account with the One can earn extra coupons by inviting friends to sign up bank and spend using their CIMB Bank debit cards. Customers Serves as a community/forum. Helpful to get new ideas easy and inexpensive will also get bonus coupons at selected merchants. way of market research Gets many people on board reach increases and so does ENGAGEMENT on Playing, REVENUE generated from the awareness. INCREASES ENGAGEMENT AND CREATES BRAND AWARENESSspending and LOYALTY from the OFFERS + ADVOCACY
  • CREATING VALUE: Dedicated Customer Loyalty Program: Both a Challenge and an opportunity We suggest 2 loyalty programs  Cutting measures due to financial pressures has made it more important to closely monitor customer experience. “ ” : Kotak’s new Loyalty program (overview)  Increasing the share in the customer’s wallet is the new mantra  Will emphasize majorly on creating a relationship with the  Customers expect same level of service across all the touch customer at all the touch points (including online and points and expect a fair and transparent treatment. offline)  Today’s banking customers are spoilt for choice. With few  Will reward customers for their relationships in entirety: barriers to entry, customer preferences have become and not just on the number of transactions and usage. increasingly mobile.  Kotak would consistently value its customers irrespective of  Customer loyalty is a precious commodity which must be the revenues they bring safeguarded at any cost  Inclusive Loyalty Program: Less stringent criteria to qualify How? for loyalty rewards in this particular program  Visibility is extremely important when it comes to a loyalty  Rewarding longevity: offering greater rewards to customers Program. that have stayed with the bank for the longest length of time  Banks need to have a dedicated loyalty program in order to or made repeat purchases differentiate in an industry of similar financial products and services “Lasting Accord”: Special Loyalty Program for premium customers (overview) Kotak Mahindra Bank’s current position in terms of a loyalty  Special admiration given to the “premium customers” program through this reward scheme  KMB offers its major loyalty offerings currently by discounts and  These customers made aware that they are a high value cashbacks on platforms such as makemytrip.com, CineMax asset for the bank with interaction programs , Dining offers and similar offers with Nokia and eBay  A premium customer should be highly visible in a lot of all customers- added value  Kotak appears to favour product usage or transaction frequency.  Bank to reward premium usage such as flying business class  Since banks’ businesses are hugely relationship oriented, their by corporate clients, 5 star, resort booking with a specially loyalty programs must also be of similar persuasion designed KMB’s credit card only for its premium customers  customers need to be rewarded on every aspect of the relationship (not just on number of transactions) Detailed Comparison of loyalty programs: Check APPENDIX
  • Delivering Value: Launching Kotak Mahindra Bank’s dedicated Loyalty Program“ ” : (detail)Salient Features Encouraging the use of latest mediums: Each time a customer uses mobile or Internet banking, subscribes to alerts via SMS or visits an ATM instead of a branch, he or she is awarded reward points Kotak will create “Customers are Owners” network which will aim to reward customers for “everyday banking”, and acknowledge the importance of both the depth and monetary value of customer relationships Automatic membership to the program as soon as a customer opens a bank account with Kotak: creating a pull By rewarding the full scope of relationships ranging from checking and savings to loan applications, the program encourages customers to do more with Kotak, and also with their cards Inclusive loyalty program: This program will include all the Kotak bank customers and while this may create a “feel good” factor for the customers, it would create a sustainable relationship with each and every customer of the bank Redeem the reward points for a number of inbuilt online features and schemes over a wide range of products and services PRINT AD 1
  • “Lasting Accord” : For premium customers (detail) Salient Features  Reward points offered on a special premium credit card called “superioron” offered just to premium customers identified by Kotak- points earned on every rupee spent with predefined merchants both online/offline. Customers to earn up to 10 points on every Rs 150 spent  Option of redeeming the points with cash back, e-vouchers for major fast food outlets, fare reduction with major airlines  Redeem your points online  Log into internet banking  Click on ‘Premier Card’ within the ‘My Accounts’ section  Click on ‘Superioron Rewards’  Redeem your points by phone  Have your Kotak Premier Credit Card account number to hand  Place your order with the specially dedicated Kotak Premier team  Kotak will create “Premium ownership” network which will aim to reward premium customers for “everyday banking”, and portray the estimation of the premium customers’ importance for the bankPRINT AD 2
  • TECHNOLOGY IS KEY!!PROMOTE NEW FEATURES OF TECHNOLGY OR MOBILE BANKING ON Online Account opening: 3 DAY GUARANTEE!!FACEBOOK  MOBILE SERVICES: With your User ID and password in place online banking is smooth, convenient, easy . Easy way to Kotak Mahindra provides links to download the forms which can be filled and remember net banking id, next time you are shopping online submitted in the nearest branch to open account.  Sms “userid” to a no like 567676  IMPROVEMENT POSSIBLE  Mobile recharge for DTH and cellphone: Type KOTM <mobile Customers on filling the form online would be sent a welcome kit , cheque no><operator><recharge amount><last 6 digits of the debit book including a working ATM/debit card within 2 days card (net banking user id)> very innovative and adds VALUE A banking correspondent would deliver it. as it removes the need of internet, sure to garner huge He will take the signatures and other proofs from the doors tep interest and adoption The account will then be activated in 24 hours.Promote usage of Mobile banking with offers: ”Kotak Mahindra brings toyou banking anytime anywhere. Transact using the Kotak Mahindra Thus from the form fill-up to account opening duration =3 days flatMobile App and get a chance to win Flipkart vouchers everyday!!” The option of opening a bank account will be available throughEasy to use, people know how to SMS- more convenience and flexibilty Internet, mobile as well Facebookto consumers SUGGESTION KEEPING CONSUMER NEED IN MIND ADDS VALUE Complete Branchless Banking Cash acceptor RFID for personalized service The Need for Personalized service What is the Need? What is Branchless Banking? • Although employees can not know the • One of the main hindrances to • Branchless banking means you do not names of every customer who comes complete branchless banking is the need to go to the branch of the bank to through the door, many clients may limitation that deposits have to be open an account. Its all done online. All expect them to do so, and do not want made at the branches only. transaction are also online. If you need a to announce their own names However, with the help of cash demand draft or a cheque book, it will be How will the bank leverage? acceptors, this limitation could be delivered to your home. The advantage is overcome. convenience of banking, lower • When the customer leaves the What it is? transaction costs and higher interest bank, the readers again capture the cards ID number, indicating a • The machine called cash acceptor — rates. transaction has been completed. The that looks like an ATM — where you bank can evaluate how long customers can deposit cash. The machine not waited before being selected by only counts the cash, but also someone from the relationship- authenticates the notes and credits management team, as well as how long the money to your account in real the client took to complete a time. transaction. Makes life easier for consumers
  • INNOVATIVE SERVICE Differentiation  INTRODUCE PREPAID CARD Purpose of the card is to check spending: in line with the advice given by SUBBU (leverage Subbu for marketing communication of Prepaid Cards) This Prepaid Card is a smart solution for small businesses or families looking to manage their day-to-day financesHOW to USE? ADVANTAGES LOAD Its If the Card is • Add money online or by phone, from a bank account or No prepaid, so lost or stolen with cash. Protection if overspending, you can only you wont be the Card is no overdraft spend whats responsible SPEND lost or stolen fees preloaded on for fraudulent the Card.. charges • You, or the people for whom youve ordered the Card, can use the Card at millions of locations around the world: in stores, online, and at ATMs. OTHER VERSIONS: Liberty Prepaid card REPEAT For: School Children • You can reload the Card as often as you wish either online or by phone. Plus, you and the people for whom youve School Children Use Parents Load It It Both Track It ordered the Card can set up an online account to check the Card balance, view transactions and set up alerts. Parents can add Use it at millions of Both parents and Maximum and monthly load limits apply money online or by locations around children can log in phone, with a bank the world: in stores log in to check the account and online, ATMs Liberty Perpaid , movie Card balance, view theaters, restaurant transaction historyOTHER ADVANTAGES s and more. and set up alerts. BENEFITS: Permanent Card-members can:  No account required  View real-time transaction history and monitor spending.  Brand awareness amongst youngsters: Chances of being loyal when they grow up  Receive email or text alerts for low funds or notifications when  Parents do not have to worry about their children carrying cash or debit/credit card a transaction has occurred. (Check with your mobile service OTHER VERSIONS: Campus Connect card provider for fees that may apply to text messages.)  Disable/enable ATM access for the Card.  Inquire about Card balance 24 hours a day/7 days a week. Specifically for college going students  Schedule reloading of funds automatically. Resident Programs Spend thrift, good way to attract USE SUBBU SAVING TIPS FOR COMMUNICATING THIS SPECIFIC CARD INNOVATIVE PRODUCT IN NATURE DELIVERS VALUE CREATES BRAND AWARENESS
  • APPENDIX  Primary research findings with graphs  Competitor Analysis- Social Media Page  Comparative Study: Offers of Banks  LOYALTY PROGRAM COMPARISON OF BANKS  Other technologies suggested
  • Results of the Primary Research: SurveyNumber of respondents – 79 Males – 74%, Females- 26%Income range: <5 lakhs – 19%, 5-10 lakhs – 48%, >10 lakhs – 33% Age group: 21-25 yrs – 24%, 26-30 yrs - 35%, 31-35 yrs - 21%, >35 yrs – 20% bank shift Selection of new banks: factors 24% Bank loyalty is high in consumers. Others 6% Most customers are unwilling to shift Came across a promotional campaign in the city/mall/stores etc 6% Yes from/change their current bank. But poor services can woo them away My previous experience with the new bank was good, so opened … 38% 76% No Saw/Heard ads in TV/Radio/Movies 6% Saw ads in print media 6% Friends/parents/reference group suggested 45% Trusted brand name 42% Information Sources 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Online Personal networks/trusted communities 3.55 Competitor advertising 2.88 When it comes to money, trust is the most important factor to decide which bank to Media reports 2.95 open an account in. Previous brand image and an expert opinion plays a pivotal role Financial advisor 3 here Financial comparison webistes 3.71 Face-to-face discussion with friends, family and colleagues 3.87 Social Network Find out more about their products 21% and services 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Access my account 39% Share budget and spending patterns 17% Share great offers related toSecure and trusted opinions count for banking customers. Personal Networks bankingand trusted financial communities are the most trusted source of info to be 7% Comment on the level of service Iupdated about bank offerings 16% have received Customers like more interactive platforms. expectations in terms of paying Social media is the most used platform for knowing a bank’s products and servicesPrepared to pay for advice on complex products if the 12% advice was completely independent 17% Improvements Prepared to pay for basic services if the services are 62% improved 38% Prepared to pay separately for advice on complex Communication clarity 24% products 21% Standard terms and conditionsExpect advice on complex products to be a part of the 76% Service quality standard service that the bank provides Personalization 0% 10% 20% 30% 40% 50% 60% 70% 80% 24%Customers need more value in use. Improved Marketing mix plays an important role.Most consumers seek expert advice on complex products as a part of standard Communication clarity is the most important factor to improve satisfaction among theservice offering customers
  • Switching: Loyalty Program Branchless Banking If you actively use three or more products from a 24%bank, that loyalty should be rewarded with lower fees or higher rates on deposits 66% Yes If you actively use three or more products from a bank, that loyalty should be rewarded with better 58% 76% No service 54% 56% 58% 60% 62% 64% 66% 68% Consumers are changing their banking services usage platform. Most consumers (approx. 76%) prefer branchless banking (entirely online).Loyalty programs are of utmost importance. Niche customers want their loyaltyto be rewarded by premium offerings (something different from standard) Factors affecting loyalty Loyalty Program Services Price reductions on bank products and services Behavior of employees 74% Gifts Schemes and offers. 73% 8% Instant response to its customers 76% 21% 6% Cash-back on credit/debit cards Interest Rates 75% Nothing, I don’t pay any attention to Ease of Use 75% loyalty/rewards programs in banks Quality of Advice 72% Premium services from the bank Accessibility / Convenience 78% 29% 23% ATM Locations 76% Price reductions for partnerships (cinema, retailer, etc.) Branch / Bank Locations 74% 10% 3% Air miles/hotel points Personal Relationship 76% Brand Image / Reputation 69% Rewards / Loyalty Programs 73% Recommendations 74%People are more willing to accept rewards in form of cash back rather than in 64% 66% 68% 70% 72% 74% 76% 78% 80%kind. Major consumers value cash back on credit/debit cards as a main source ofrewarding their loyalty Accessibility (presence of ATMs included) and personal relationship are the most important factors in keeping loyalty with a bank Factors: Internet Banking Factors influeincing banking experience Internet banking General assessment about the service 74% Variety of transactions 79% Mobile banking/payments Speed of page loading 80% 91% 68% Social media 89% 82% Ease of use/ Navigation 82% Telephone Page Setup/ Menu Flow 76% 65% 63% ATM 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% BranchesNowadays consumers want things to be as simple as possible, so that they do not Internet banking and ATMs are the most influential banking experienceshave to put in much effortsLINK OF SURVEY: https://qtrial.qualtrics.com/SE/?SID=SV_0wW4X4FBLza9n5X
  • Competitor Analysis- Social Media Page Axis Bank ICICI Bank Yes Bank HDFC Bank Citibank Facebook page? If yes, no of Likes Yes, 588489 Yes, 822408 Yes, 39303 Yes, 337852 Yes, 474195 Twitter page? If yes, no of 52 6028 885 4385 11646 followers No of facebook apps 9 8 7 3 7 • Mere zindagi ki picture – create your own • Your Bank Account – • Cash Back What are they? • Locate us personal movie on Facebook, lets you • Customer care – Yes • Weigh your wallet – • SmartBuy offers - celebrating the moments check your account get to know who you Touch Service exciting deals and • Mere zindagi ka safar – details, get e- • Product Suite – are when it comes to discounts on HDFC Bank reliving the journey of statements, Upgrade money savings account, global Credit Cards with your life debit cards, request Indian banking, wealth • My Citibank SmartBuy – • Plan your money – cheque books management privileges – computers, electronics, cigarette • iArena – the gaming Personalized Offer program, senior citizen mobiles, watches, appare calculator, power of 1000 application Recommendations program, fixed deposit l, jewellery, books, gifts, t calculator, eating out • Khayal aapka photo from Citibank • Money Monitor – ravel accessories calculator, mein contest • Connect – Access all personal finance • Products – Accounts banoonga crorepati • Product Suite your account tracking tool and Deposits, Credit calculator • Bank-on-the-go information on • Events Cards, Loans, Service • Customer Care • Offer zone Citibank Online • Offers and Privileges • Twitter • Axis Bank Branch • Customer care • The Delight of Delhi • Twitter • A to Z offers • Locate us •The magic of Mumbai • PicBadges •Global – continent • Buy Tickets wise global reach of • Axis Speedpay – pay all Citibank your bills instantlyKotak meanwhile has only 16868 followers on Facebook and 2 meaningful Fb apps about offers and donate for a cause
  • Comparative Study: Offers of Banks HDFC AXIS ICICI CITI BANK YES BANK INDUSLAND SBI KOTAKBanks MAHINDRAOnline Shopping Online shopping shopping at many Air, Rail travel Visit any of the Debit to No specific Accessories, Apparel, Artefacts & offers on Mobiles, major Online stores, Vouchers, holiday mentioned websites savings/current catalogues on their automobiles, books, Collectibles, Astrology other electronic get to know about packages, electronic and buy through accounts covering site, just IndusInd consumer electronics, Ayurvedic Products, devices, jewellery, the current special gadget purchase reward points categories Bank e-Secure entertainment, Books & Periodicals watches, gifts and offers/discounts and offer, books, toys and like Apparels, Hotels,, confirms your identity finance, gifts, Education, Electronics travel accessories get a preview of the games, Dining and Gifts, Florists, through a simple jewellery etc. One of & Household Items, new items added on culinary treats Electronics, etc check process when the largest catalogues Florists, Gifts, Hotels to the shelves by you make online in the industry these online purchases retailers/service providersBill Payment Postpaid and prepaid Electricity, Gas, Discount on Postpaid mobile, Insurance, donation, Telephone Bills, SBI e-PAY- pay for E- MTNL, BSNL, Airtel & mobile payment .DTH insurance, mobile and bookmyshow bill insurance, DTH, charity, subscriptions, Electricity Bills, ticketing, e-tax, telephone/mobile services of TATASKY. telephone, municipal payment donations, mutual fund, Gas, Mobile Bills, Recharge telephone bill, bills, Electricity Bills, Insurance premium taxes, mutual funds subscriptions , Utility, mobile bill your Prepaid Mobile, electricity, insurance, Pay Visa Credit Card and subscriptions of payment electricity, mobile payment DTH Recharge , credit cards Bills, Pay Insurance India Today recharge, landline Insurance Premia, Premiums Gas BillsDebit Card Benefits on fast food free domestic ATM Earning Payback No additional Debit Attractive discounts Discounts on apparels Cash back on debit Discounts on outlet payments, transactions, personal reward points for card offers at TGIF stores across to electronics, from cards, pay for shopping at eBay,Offers hotel booking and insurance, only Debit redemption, cashback the county, 20% dining to travel & purchases, restaurant cinemax, infiBeam, online movie tickets Card that is well and on mobile recharge, discount on VLCC day, holiday, from bills, hotel bills, firstcry.com, tradus, booking truly your own, since Bonus Weekend discount on visiting jewellery to wellness airline tickets and discount on Apollo you even decide how offers; for example resorts other purposes hospital health check you want it to look. on buying Apple iPad 2 TabletsCredit card Easy EMI payment Use your Axis Bank Offers on selected Offers on dining, shop online, pay Dining Offers- offers SBI spiceJet card-Cash Domestic Flights- offers, online mobile Card & Get Rs 250 off dining, cash back on shopping, hotel bills, plan from the leading Back, SpiceJet Rs.250/- caseback peroffers recharge, travel on a minimum fuel purchases, entertainment, travel vacation, pay fuel restaurants, Travel Discount Vouchers, booking ID, Domestic bookings, special purchase of Rs. 999, entertainment , paying of EMI (major charge, pay shopping Offers- tied up with Excess Baggage Holidays:- 7 % cash discounts on family Extra 15% Off on all Special ICICI Jet benefits for credit bills, accident the topmost in the Vouchers, Lounge back International restaurants products exclusively Airways credit card cards only) insurance, lost card airlines, travel and Access & Incremental Holidays 10% cash for Axis Bank Card (free miles on joining) protection hotel industry rewards on your back on base fare Holders spendsOther offers Special benefits on relish sumptuous Prepaid cards to Loan on credit card, YES BANK - BAJAJ All IndusInd Debit Royale Signature Card shopping from eBay meals at a famous purchase anytime Redeem Reward Allianz Jiyofit Card holders will get 2% discount to all on -Access to 600 VIP India and Yatra.com restaurant or get the and anywhere, Points in return of air Programme | A Zero a discount for sale of gold coins of 500 Airport Lounges choicest of consumer corporate cards for travel miles, cash Balance Savings different travel grams or more at any Worldwide durables in super business travel and back and other gift Account with various services availed at one time . Holidays and Fuel Surcharge waiver discounted prices vendor payments vouchers health benefits Yatra.com by using Hotel Booking for SBI Exclusive dining with zovi.com and their IndusInd Debit Credit Card Holders benefits at the Taj tradus.com card.
  • LOYALTY PROGRAM COMPARISON OF BANKS (1/2) Bank Name HDFC ICICI Bank Kotak Mahindra CitiBank Axis Bank Yes BankDifferent Loyalty Titanium Rewards Debit BAJAJ Allianz Jiyofit My Rewards Payback, Hand picked Rewards Suvidha Programmes Kotak Card Benefits Card, Gold Debit Card Programme A Zero Balance Savings Account with various health benefits. This Earn while you spend with our program looks to promote a exciting reward program. Get 1 proactive and preventive approach reward point for every Rs 100 of towards improving ones health & POS usage on your Titanium fitness. Rewards Debit Card. Reward Card member must points can be redeemed against With the Jiyo Fit Debit Card, you accumulate a minimum of exciting gifts, merchandise and have the power of healthy options,General Terms 500 points to be eligible gift vouchers, need to collect 400 all in the palm of your hand. Getand Conditions for redemption of Reward points before starting to redeem Health Insurance cover, and gain Points in the MyRewards healthcare benefits such as redemption program discounts & special offers at gyms & fitness centres, health-food restaurants & stores, chemists, spas, and lots more. makeMyTrip:Domestic Flights: Reward program, enhanced limits Rs.250/- cashback per booking Using Citibank Suvidha for cash withdrawl, flexibility of Obopay - Mobile Money Services - Reward points offered on earn PAYBACK points on purchases ID, 5% cashback on domestic Account, the more banking usage, fuel surcharge waiver, This service will enable consumers different types of credit from ICICI Bank Credit Cards and holidays, 7% on international,services you use, the more insurance, access to airport to transfer money to other cards- points earned on Debit Cards. 10% cash back on base fare of Suvidha Loyalty Points you lounges, online payments, individuals, pay utility bills as well every rupee spent with the international flights earn. worldwide reach, customer care, as recharge prepaid SIM cards (top- pre-defined merchants Earn even more points at HPCL, etc ups), by using their mobile devices both online/offline. makemytrip.com and many more You can redeem your PAYBACK partners in your city or CineMax: Buy 1 Ticket and Get Suvidha Loyalty Points Axis Bank has announced the Regalia, Infinia- special online and redeem your PAYBACK 1 free on Saturday and Sunday online for a wide range of launch of Swipeon, a mobile type of credit card offered points for fabulous rewards at www.cinemax.co.in. gifts phone based card acceptance to the premium Feautures customers to earn up to 8 service which will convert any Redeem Hand-picked Rewards against Wine and Dine Delights: Save mobile phone into a card points on every Rs 150 a wide range of exclusive options. up to 20% * on dining across acceptance device by simply spent Choose from fashion to fragrances, 120 restaurants, similar attaching the Mswipe card reader dining experiences to holidays, home discount options with Nokia to the phone. entertainment to hi-tech gadgets and and ebay a lot more. Each item has been carefully hand-picked to ensure that our card members* get only the best.
  • LOYALTY PROGRAM COMPARISON OF BANKS (2/2) Citi Mobile- Simplest and most Mobile Banking: Menu driven convinient way of accessing the banking service - no need to rememberservices while on the move, regular iMobile- ICICI Banks mobile complex codes updates on the dining offers across the Mobile based card acceptance is Android App-This banking application. Easy, city expected to benefit merchants with application helps you convenient and secure to use, home delivery services, cash-on- check your account iMobile lets you transfer funds, Use CitiBank Online (on a mobile delivery agents, taxi drivers and balance, transfer funds, pay bills, book travel or movie browser) to check the balances in your others as they can easily accept pay your bills and conduct tickets, recharge your prepaid linked accounts—checking, savings, card payments on the go, with very many other transactions mobile and DTH, locate an ATM credit card, home equity or personal small investments on their part. while on the moveMobile Apps etc lines and loans, and mortgages Enjoy surcharge waiver on fuel and other ngpay App- you can bank Pay bills and track payments spends at all fuel stations across feautures on the move. With ngpay India with your Axis Bank Titanium you get a range of services Deposit checks into your personal Rewards Debit Card. There will be a from a network of checking account using your mobile cap of Rs. 200 on the monthly partners. Book tickets, device amount of fuel surcharge waived shop or transfer funds, and no reward points will be there are so many See recent activity awarded on fuel purchases possibilities. Transfer money between your Citi accounts Send money to other people with Popmoney Check your account balances for Current, Savings & Term Deposit accounts Transfer funds between your accounts or other accounts in Kotak Bank Yatra.com Send and receive money from The Titanium Rewards Debit Card 10% Off on Domestic your mobile instantly via grants you access to premium Flights subject to Interbank Mobile Payment airport lounges in maximum of Rs. 200 Service (IMPS) Delhi, Chennai, Kolkata, Mumbai 10% Off on International Make payments to selected and Kochi. Discounts & Special Offers from Flights subject to merchants via IMPS Merchant Gyms, Spas, Beauty Clinics, maximum of Rs. 500/- Payments No more waiting in long queues. Diagnostic Centers and RetailDiscounts and Pay your telephone, mobile or Chains 10% Off on Domestic other offers Purchase & redeem Mutual utility bills, book movie, train or Cashless admission to Bajaj Hotels subject to maximum Fund units flight tickets or shop online from Allianz networked hospitals just of Rs. 500 on ebay Report loss/theft of Debit the comfort of your home using by producing the Jiyo Fit card at Card and request for your Titanium Rewards Debit Card. the counter Credit Card Shopping- 5% replacement nstant & Hassle-free claim Off Travel Vouchers with goibibo.com Check status of your Cheque Extra 15% Off on all products preauthorization and re- Debit Card- 5% Off Cashback on booking with instruments exclusively for Axis Bank Card imbursement using the Jiyo Fit Net Banking- 10% Off makemytrip.com Request issue of new Cheque Holders Card Discounts at selected outlets book Use your Axis Bank Card & Get Special Offers from Brands, Pay Utility Bills to over 150 Rs 250 off on a minimum purchase Airlines, Hotels and Restaurants 15% Discount at dining at selected service providers of Rs. 999 by using Promocode Earn and Redeem loyalty points restuarants AXIS250. at Partner Outlets
  • Other Social 1. Participate in BLOGS Media 2. Presence on Linkedin and other Social Media Websites Engagement 3. Most social conversations around banking take place somewhere else: on old-school social media sites known as “forums” and Strategies “message boards.” • Be smart about where you look to engage in conversations. Do some research of your own about where people in your community are discussing financial topics online. And don’t focus on solely bank related websites. SOME OTHER TECHNOLOGY RECOMMENDATIONS: Need proper PILOT run before launch Instant Money Transfer Breeze BankingNeed for IMT What is it?The receiver needs money instantly / needs emergency cash A new variant of a Savings Account. The account has been designed to suit your The receiver doesnt have a bank account individual needs of personalisation and convenience. When you dont know the receivers bank account details The receiver is not within easy distance (to deliver cash or send a cheque by hand) Card personalization  Personalize your card the way you want it by uploading a picture of your loved ones.What it is?  A card so unique to you, that it reflects your personalityAn innovative domestic money remittance service that allows you to send money to a Greater Rewardsreceiver only by using the receivers mobile number. The receiver can withdraw  Earn accelerated rewards (5x) on spends on Retail Fashion, Entertainment andmoney from an ATM with or without using a card. The receiver receives all the details Department stores and certain other purchasesrequired for withdrawal of the cash on his or her mobile phone.  You can convert your reward points to cash and credit them back to yourThe details present in the SMS are: account as you spend - Earn in cash as you spend! The IMT amount  Furthermore, your reward points do not expire at the end of the year. SMS Code (The Bank will generate this and send to the beneficiary) IMT ID (a unique code which can be used to refer your IMT transaction) Two-factor authentication IMT Expiry date What is it?If the beneficiary doesnt have a Debit card an approach to authentication which requires the presentation of two or more ofHe or she can perform a card less IMT withdrawal at any ATM. To do so, the receiver the three authentication factors:needs to register his or her mobile phone number at any of the Bank branches (the  a knowledge factor ("something the user knows“ e.g. password, PIN),registration process is described below). Once registered, the receiver will be able to  a possession factor ("something the user has“ e.g. ATM card, Smart Card), andwithdraw any number of IMTs issued on his or her mobile phone without using a card.  an inherence factor ("something the user is“ e.g. biometrics).While registering, the receiver needs to provider KYC documents and register his orher mobile number. How it can be used? Two Factor authentication requires users to input a username and password, as well as hold some kind of unique possession, such as a mobile phone or PDA, to receive or generate a time limited one-time password.
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