Adapting to Changing Client Behavior - Marketing Strategies in Highly Competitive Markets

Adapting to Changing Client Behavior Marketing Strategies in Highly Competitive Markets Jove Tapiador MABS 2010 RBAP‐MABS Na.onal Roundtable Conference  Hya= Hotel and Casino, Manila  June 2‐3, 2010 

Objectives 1. Discuss how rural bankers can adapt to changing customer demands 2. Identifies attractive value propositions to stand out against competition

National Statistics Office (NSO), 2010

Urban vs. Rural Population Urban  Rural  40%  60% 

Industry Contribution to GDP National Statistics Office (NSO), 2010

Economic problems push Filipinos to ... Look at alternative sources of income ... Get a side job, run a micro-enterprise, borrow from family and friends... Philippine Social Research Center (PSRC), 2007

Economic problems push Filipinos to ... Shift from premium to less premium brands ... Look at performance rather than image ... Prefer local products to imported ones ... Philippine Social Research Center (PSRC), 2007

Economic problems push Filipinos to ... Give priority to basic goods ... Express more interest in product promotions ... Less impulsive in purchases ... Philippine Social Research Center (PSRC), 2007

Economic problems push Filipinos to ... Start comparing brands by reading labels ... “Doon tayo sa makakatipid” (Let us go to where we can save more) Decrease in usage frequency Philippine Social Research Center (PSRC), 2007

As a result ... 28-55% changed brands 37-57% reduced quantity of usage Philippine Social Research Center (PSRC), 2007

What does this mean for rural banking and microfinance? Client Behavior Strategies • Withdraw from the • Craft communications activities that ... world 1. Enable house to house calls 2. Use local newspaper and radio ads 3. Encourage mobile phone banking transactions 4. Involve other members of the household

What does this mean for rural banking and microfinance? Client Behavior Strategies • Look for alternate • Do marketing activities that... sources of income 1. Emphasize micro- enterprise loan products 2. Point out working experience with micro- entrepreneurs

What does this mean for rural banking and microfinance? Client Behavior Strategies • Shift from premium • Tackle head-on the difference between KB/ to less premium TB vs RB brand • Take away business from • Prefer performance thrift banks • Emphasize better over image customer service experience • But this is double-edged if you do not have good service

What does this mean for rural banking and microfinance? Client Behavior Strategies • Interest in product • Prepare marketing materials with better promotions information about the • Less impulse – Bank – Product buying – Price • Compare brands • Do off-branch promotions

What does this mean for rural banking and microfinance? Client Behavior Strategies • Go to where they • Position your services as THE SAME FOR LESS can save more • But a better position is MORE FOR LESS • Decrease in usage Ex. savings account/ checking account • More product maintaining balances substitution • Introduce new products to drive number of transactions

In conclusion ... • Ask yourself again, who is your customer? And what do they need? • Do your market research – Customer – Competitor • Promote your brand. • Engage your client.

Adapting to Changing Client Behavior - Marketing Strategies in Highly Competitive Markets

by MABSIV on Jun 11, 2010

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Adapting to Changing Client Behavior - Marketing Strategies in Highly Competitive Markets — Presentation Transcript

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