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Channel strategy, v1, 2011
Channel strategy, v1, 2011
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Channel strategy, v1, 2011

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This presentation encompasses the Channel Strategy pertinent to the Banking industry

This presentation encompasses the Channel Strategy pertinent to the Banking industry

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  • The Banking marketplace includes large, multi-branch universal banks who work with both individual banking customers and corporate clients to help them meet their financial needs. Current industry-wide challenges such as credit liquidity, capital adequacy, consumer confidence, regulatory reform, deteriorating credit quality, and the anticipated duration of the downturn have ignited a shift to more market- and customer-centric operations. During these turbulent economic times, banks are most concerned with: Customer Retention – Retaining existing customers has become critically important as banks are becoming increasingly dependent on deposits as sources of funds. Banks will strive to differentiate themselves by establishing deep, trusted relationships with customers to improve their image, regain customer trust, and retain profitable customers. Transforming data into knowledge will be critical for banks looking to differentiate themselves and gain competitive advantage. Banks with the ability to better understand their customers’ profiles and behaviors will be better able to retain top customers, manage risk, and identify areas for business opportunity. Risk Management – Operating capital is scarcer than at any time in recent memory. As a result, banks are tightening credit underwriting requirements significantly. By focusing on building customer loyalty and providing greater levels of advisory services, such as assisting customers with debt restructuring, financial planning and risk-management, banks can not only provide better service, but also identify new business opportunities , increase customer confidence and market share. Operational Efficiency –Financial institutions will continue their efforts to improve efficiency ratios, with cost-cutting measures being only part of their strategies. More importantly banks will embark in transformational projects with the goals of reducing their risk and cost while improving service delivery and leveraging existing applications and customer data. Technology plays an important role in enabling banks’ business process transformation. Technology spending will be shifted to front-end and integration with back-office application silos into fewer small-scale projects with aggressive business and ROI goals of redefining business processes, enabling cross-enterprise collaboration, and improving decision-making with in-depth, contextual analytics.
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    1. MULTI-CHANNEL APPROACH FOR FINANCIAL INSTITUTIONSPresented by: Kevin ChettyCommercial Director
    2. ‘ Strength lies in Differences NOT Similarities’ – Stephen Covey ‘The achievement of an organisation are the results of the combined effort – Vincent Lombardi
    3. INTRODUCTION
    4.  Topic Presenter Delegates Workshop Ground Rules Workshop Expectations & Objectives 4
    5. AGENDA
    6.  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 Strategy Case Study & Exercise  Session 4: Alternative Strategy Case Study & Exercise 6
    7. SESSION 1: Customers, Landscape, Strategy
    8. The Alchemist – Paulo Coelho “It’s the possibility of having a dream come true that makes life interesting”
    9. 1. BackgroundRETAIL 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 9
    10. 1. BackgroundAN EVOLUTION FIND YOUR SPACE 10
    11. 1. BackgroundTHE CHANGING FACE OF BANKING In view of several developments in the 1990’s, the banking industry is changing … Global banking more competitive The IT revolution Information explosion Rationalisation of branches in 1990’s Banks are trying to become one-stop financial supermarkets How did banks respond? o Distribute financial services through other ways and channels … o … proliferation of non-traditional banking channels o Growth in usage of MOBILE selling agents
    12. 1. BackgroundA COMPETITIVE LANDSCAPE eg SOUTH AFRICA Market landscape Banking environment Key macro econ trends Competitors becoming Macro economic increasingly aggressive environment outlook is Alliances and joint ventures moderate Customers Use a wide range of Regulation financial products Tier 2/3 legislation Proliferation of National Credit Act distribution Competition alternatives Commission Lower commission earnings
    13. 1. BackgroundWHAT 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 13
    14. 1. BackgroundRAISING 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 14
    15. 1. BackgroundTHE 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
    16. 1. BackgroundCHANNEL 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.
    17. 1. BackgroundKEY 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
    18. 1. BackgroundKEY 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
    19. 1. BackgroundDEFINE DIRECT CHANNEL: Those channels where there is direct control IN-DIRECT CHANNEL: Those channels where there is NO direct control over the channels
    20. 1. BackgroundDIRECT vs. IN-DIRECT CHANNELS Direct Type Description Strengths Weaknesses Channel Channel Electronic Internet Company internet site. Most Most consumers have access If the internet is NOT user channels can be linked to the to PC/internet zone. Cheaper friendly, navigation can internet, depending on the channel as most traffic is via become tedious to PUSH/PULL strategy. Internet the consumer/client. Clients frustrating. Hence ease of must have access point for have access to wider access is crucial prospective clients. This must be information linked to a central email address, finally to a central data base. Direct email to Sending direct mailers to a Most businesses have Dependant on the reliability prospective/identified customer access to email. It is more of email address provided. base. This involves a BTL cost effective. There is NO Consumers can become campaign message. Data base delay in the release and overloaded with so called that has accurate information is receiving of information. junk mail. KEY. Campaign messages can be tailor made and using multi- media (e.g. Saleslink) Direct email Receiving an email from a It is cost effective via a client. Not responding on time from prospective customer. Linkage to a Furthermore, increases the (with 24/48 hours) central email address and data success of closure base Telephony Telemarketers Outbound and Inbound. Using Competitive advantage Can become very costly if defined CRM/IT platform for all through a centralized implemented incorrectly. sales and information sharing. In approach, company controls Clients are inundated with addition, low key desktop call value chain. Hence, reduce calls thus increasing caller centre can be set up. other operational frustration. Poorly trained costs/infrastructure Telemarketers can damage reputation. Furthermore the conversion ratio is low Telephone Automated recording of a message Cost effective Can become frustrating to a Automated customer, if the message is NOT responded to. SMS Must be linked to a dedicated call Cost effective and can be Can become costly to centre, so that the response is used effectively in customer manage if implemented immediate. This will improve the follow-ups, e.g. birthdays, incorrectly. Message customer service image thank you etc contents has to be small IVR Interactive Voice Recorders. Reduced overhead costs Can become very costly for Automated interactive system with associated with staff. Helps a company. Can prove to a caller. Both inbound and improve sales and frustrating for a consumer outbound information gathering Post Direct Mailers Campaigns in most retail segments If the campaign is well Can become costly and driven through direct mailers. packaged, the ineffective due to post These are tailored messages for conversion/response rate is delays the intended recipient higher Magazine Campaigns and information on a Stuffers are placed in Can become costly if the Stuffers company/product is placed in strategic magazines with a response is very low to NIL certain magazine/s direct focus on a target market
    21. 1. BackgroundDIRECT vs. IN-DIRECT CHANNELS Face 2 Walk-in and Customers that simply walk-in or The company has an active This is dependent on the Face Referrals referred by a client. This is person to engage with and marketing strategy and the dependent on the PUSH/PULL sell a product brand equity. IOW the marketing strategy product is TOP on mind Direct Sales Employing agents to fulfill sales Direct activities are most Niche industries DSA’s Agents effective in a high volume become more difficult. Can employed by industry type be very costly. If NOT company effectively trained can damage a brand. RISKs such as fraud Media BTL These are much targeted They have proven to be more They are costly if planned Campaigns campaigns on a specific data successful due to the incorrectly base/segment. These include Print, focused strategy. Planning is TV, and Radio. The campaign done in advance so as to message must be segmented and ensure costs are curtailed or implement over a defined 12 month maintained. This gives campaign period. Including companies the competitive breakfast and conferences. advantage and increase in organic growth Other Fax Fax to email is the most For companies that have NO Quality of information appropriate process email or are responding to a campaign Interactive Kiosks that are designed for a Reduce people, Can become very costly Media Kiosks company and have an interactive infrastructure costs. link to a company/website/email Embracing innovative technology gives you the competitive advantage. Place at strategic points, e.g. SME Banks Interactive TV Using TV as an interactive medium. Reduce people, Can become very costly Used in game shows etc infrastructure costs. Embracing innovative technology gives you the competitive advantage Social Media Twitter, Facebook. These have Cost effective. Used by a ? become leading interaction sites for wider audience, hence business people. captive audience. Can create blogs and interactive linkages for your company. Hence, groups of people will apply
    22. 1. BackgroundDIRECT vs. IN-DIRECT CHANNELS IN-Direct Type Channel Description Strengths Weaknesses Channel Electronic 3rd Internet Sites Information is flagged on 3rd party Increase marketing Linkage to company site rd sites. Usually 3 party sites have exposure must be agreed upon. close similarity to a company or Reliability of 3rd party site engage in business with a company Telephony Outsourced The entire outbound and inbound Reduced infrastructure and Can become very costly. Telemarketing call centre is outsourced resource investment. Most May NOT receive effective if a RISK vs. dedicated support as the REWARD model is used outsourced partner may have other clients Post Knock n Drop Outsource the drop off of flyers or Capture a wider target Company personal may leaflets or newsletters market. Limit the use of NOT drop off all the flyers internal resources or leaflets. Conversion is very low Regional Surveys Have door to door surveys. In the Control and monitor Interviewer biasness form of a questionnaire responses Face to 3rd Party Direct Outsourcing the sales and Works well if a risk vs. Reputational risk Face Sales Agents marketing function. This is one of reward model is used. the biggest emerging trends Reduced labour associate world-wide. Commission driven costs. Increased speed to roll-out Partners/Associate Establishing a network of deal Increase geographical Reputational risk Companies makers regional or country-wide. reach and access to NEW This can be individuals and customers companies. Commission or % of driven Media Trade Shows Coordinated by an external field Can undertake more trade Quality of leads or through 3rd Parties marketing company. Gathering of shows in a given month, information gathered. information or data. This will be quarter, year. Costs can be high used for prospecting. Important for ATL Brand Equity ATL Campaigns Includes Print, TV, and Radio. A Results can be very positive Costly and time very important constituent for long term. However, this is consuming Brand building or Brand Equity linked to defined creation campaigns. Great for the PUSH strategy Other Joint Ventures Forming an alliance with a Increase organic growth Can fail if the objectives company that has similar very quickly. Increase and vision is NOT shared philosophy or capability to fulfill a geographical footprint. Very sales channel function effective for Retailers.
    23. 1. BackgroundCHANNEL COST EFFECIENCY vs. VALUE ANALYSIS Face to Face The success for most channels centres on a company’s ability Website for interaction to achieve balance between the variable or fixed costs drivers, High information and the value the end user gains in using the respective channel. Hence, the above model is a good schematic view of IT the Cost Efficiency vs. Value to an end user. It can be applied O DO when making respective channel decisions. In addition, it highlights three critical decision paths: F OF E Avoid IT: this is attributed to low cost efficiency and low end user AD Med value, e.g. interactive TV TR ium TRADE OFF: has medium cost efficiency and medium value to a client, e.g. direct sales agents. Business must take a strategic decision IT State of art Call DO IT: has high value and high cost efficiency drivers, e.g. D OI Low Centre company website AV Low Medium High Value to the User
    24. 1. BackgroundCOST BREAKDOWN PER CHANNEL Direct Type Description of Cost Drivers Cost per Driver Total Cost Channel Channel 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 Walk-in and Face Referrals Direct Sales Agents employed by company
    25. 1. BackgroundCHANNEL CAPACITY Direct Type Mgr/ No. PC Laptop Printer Scanner Fax Tel Channel Channel Sup Staff Electronic Internet Direct email to Direct email from Telephony Telemarketers Telephone Automated SMS IVR Post Direct Mailers Magazine Stuffers Face 2 Walk-in and Face Referrals Direct Sales Agents employed by company
    26. 1. BackgroundCHANNEL PRODUCTIVITY IN-Direct Type Channel Productivity Measurements Conversion Ratio % Channel Electronic 3rd Internet Sites No of hits/responses Telephony Outsourced Measured against Prospects Telemarketing 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 Measured against target vs. Agents achieved. In addition measure achieved vs. comms paid out. Partners/Associate Measured against set targets Companies per month or quarter. Pick this up on the comms paid Media Trade Shows through No of people that visited 3rd Parties 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
    27. 1. BackgroundCOMPARITIVE INCOME D & ID Electronic Telephony Post Face 2 Media Other Face Sales: Operating Expenses: Nett Effect
    28. 1. BackgroundCHANNEL SELECTION MATRIX FROM A CASE STUDY
    29. 1. BackgroundPROCESS MAPPING/MANAGEMENT
    30. 1. BackgroundIMPLEMENTATION STRATEGY BASED ON MYEXPERIENCE
    31. 1. BackgroundTHE 6 DYNAMICS CUSTOMER FOCUS In 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)
    32. SESSION 2: Mobile Strategy
    33. 1. BackgroundOVERVIEW MOBILE SALES CHANNELS MOBILE E-COMMERCE
    34. 1. Background MOBILE SALES CHANNELS
    35. MARKET OVERVIEW: DEMOGRAPHICS CASE STUDY Diverse distribution and concentration of Target Market population R3k-R24,999 (CMM) R25k-R39,999 (RA) Provinces National Total (000s) R0-R2,999 (ELB) (000s) Occupation National Total (000s) (000s) (000s) Eastern Cape 4,616 14.8% 3,913 17.3% 641 9.6% 6 3.6% Occupation, Administrative & 673 2.2% Managerial 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 & 1,551 5.0% Technical 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 & 709 2.3% Communication Totals 31,106 100% 22,574 100% 6,710 100% 174 100% Occupation, - Other 113 0.4% Totals 31,108 100% Provinces with the highest distribution ALL segments: • Gauteng • KwaZulu Natal 59,6% Not Economically Active • Western Cape Source AMPS2007B 35
    36. MARKET OVERVIEW: ECONOMICS Growth slow down and upward Inflationary pressures Real GDP growth Overview of 2007 6  In 2007 the economy continued to perform strongly with real GDP growth coming at 5,1% after the 2006 growth rate was revised upward 5 to 5,4%. 4  The services sector, in particular the financial, real-estate and business services sector made the strongest contribution to growth towards the %3 end of the year as banks’ balance sheets and revenues continued to grow at a rapid pace. 2  After remaining stable in the first half of the year, interest rates were 1 hiked further in the second half of the year on the back of rising inflation. 0 2000 2001 2002 2003 2004 2005 2006 2007 2008  Interest rates were raised by a total of 200 basis points between June and December, and together with the implementation of the National CPIX Inflation and Interest Rates Credit Act (NCA), caused demand for credit to gradually taper off 18 towards year-end. 16 Prospects for 2008 14  Economic growth is expected to slow down further in 2008 on the back 12 of rising interest rates, infrastructure (electricity) constraints, and a struggling household sector.% 10 8  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 6 3,4% in 2008. 4 2  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, 2000 2001 2002 2003 2004 2005 2006 2007 2008 and the rand exchange rate. CPIX inflation rate Prime interest rate  Interest rates are projected to rise another 50 bps in June, remaining stable in the rest of 2008 in an attempt to keep 36 inflation and inflation expectations under control.
    37. ABSA FOOTPRINT IN SA GEO-SPATIAL MAPPING 37
    38. Purpose: To grow the access of Purpose sales & service within NICHE markets, through dedicated external sales teams at the MOBILE SALES FORCE BUSINESS MODEL worksite, at place of convenience or on the phone……… In house or out sourced Direct Sales WPB Business External Sales & and Service Development Operations Channel for the niche Support markets, The purpose of WPB Business Development is to aggressively grow the number of schemes, active portfolio growth and B2B Key Account Relationship Teams B2B other business units e.g. ELB via ML To provide access to sales & service Finance Joint Ventures / New Opportunities to increase the number of schemes relationship management LG: Retail Affluent & Investment Appointment/Diary Management through Points of Presence at Sales & Operational Support Customer Value Proposition/ LG: Islamic Consultants LG: Core Middle Market Marketing Outbound Sales Teams Inbound Sales Teams The purpose of Ext Sales & designated worksites Management Team Operations is provide an external Human Resource sales force for niche markets at Consultants the worksite, at home place of convenience or distributionDelivery Solutions channels (ESP) & Innovation The purpose of Direct Sales and Service is to optimise the use of a dedicated call centre for acquisition, cross-sell and support to the external sales team. A CRM approach will be adopted, with an out-sourced or in-house approach Development of compelling value propositions for the WPB externalCVP/Commercial LEAD GENERATOR sales teams focusing on worksites, niche markets and aggressive SEGMENTED APPROACHManagement acquisition END TO END CAPABILITY with DEDICATED focus NICHE markets 38
    39. MOBILE FORCE SEGMENTATION MODELSegment specific focus MS force spread over 10 Provinces Contract Market Total FTE LG Designation Product Focus (Outs – 3rd Segment Comp. (ABSA) Party) Retail •Investment ProductsMS: Acquisition Banker Affluent •Retail Affluent Transactional Products 100 100 0 •Unsecured Lending Products Islamic •Shariah compliant Transactional andMS: Islamic Banker investment Products 85 85 0 •Shariah compliant Vehicle Finance Core Middle •Transactional Products Market •UnsecuredMS: Core Middle •Lending Products 296 139 157Market Focus •Investment Products •Value Add, e.g. Telephonic BankingLG: Entry Level Entry Level •Transactional Products ESP: 450Banking Focus – Banking •Unsecured Lending Products(1) External Sales •Investment Products MobilePoints (linked to •Basic Insurance Products Units: 54 0 504Branches) •Value Add, e.g. Telephonic Banking(2) Mobile Sales Unit(Unbanked Focus)TOTAL MS 985 324 661 GRCB Lead Generator Conference, London, 18 & 39 19 May 2008
    40. CUSTOMER SEGMENTATION MODEL Entry Level Banking up to Retail Affluent Segment Wealth Absa retail acc R15m NIA customer base2 Private Bank R650 000 pa Retail Affluent RA R300 000 pa 290 969 Prof’s 63 400 New to bank customers Staff 49 629 R120 000 pa CMM 3.6m f af Se St M th n LS io u Core Middle Yo r s n/ Market Seniors io 1.32 m at Students R36 000 pa Students ti c 105 000 is ph Youth so 490 000 al Entry-level banking i nc ELB na 3.79m Fi New to bank customers GRCB Lead Generator Black diamonds Unbanked Conference, London, 18Lending Micro & 40Note: 1 Source: Primary Bank Relationships – Amps ‘07 19 May 2008 2 Source: Absa Internal reflecting all relationships: Dec 2007
    41. OUTSOURCED RECRUITMENT MODEL Conventional sourcing methods Unconventional sourcing methods • Within Absa Bank • External Sources • Leveraging brands ADCORP CV Order confirmation Sourcing Walk-In / First-line Labour Telephone screening Broker Resource pool management Adcorp alliances Voice Assessments Competency Interview recognition Credit Checks (SHL, Hrsmart) based interview assessment Request CM / Cultural match Request red list Client interview Induction ED / Ref Checks interview Workplace FAIS Placement preparedness accreditation Quest training incubator 41
    42. TRAINING Mobile Sales Force Academy : Lean Curriculum- 5 day Programme Day 1 Days 2 and 3 Absa Socialisation (high level) Business Simulation Absa Compliance and testing encompassing Sales, Service, Products and Process Days 4 and 5 Regulatory Training (NQF 4 and 30 Credits) 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. 42
    43. MOBILE SALES CAPABILITIES & DEPLOYMENTSegmented Distribution Channel focus providing multiple options of delivery Entry Level Entry Level Workplace Banking Banks on Wheels Banking Banking Kiosks (BOW’s) External Sales Points Mobile Sales Units Focus: Worksites Focus: ELB and CMM (ESP’s) (MSU’s) Core Middle Market at Events, Worksites, Focus: Branch Hot Spots Focus: Townships Branch Support Comprises: Comprises: Comprises: Comprises: •Gazebo •Mercedes Sprinter •Large Kiosk •VW Crafter •Digital pens (2) •Gazebo •Generator •Generator •POS device •Generator •Remote opening kits (2) •Combination TV and Video (CET) •Tables (2) •Combination TV and Video (CET) •Digital pens (2) •PA System •Chairs (7) •Remote opening kits (2) •POS device •FBSS Workstations (2) •Marketing materials •Digital pens (2) •3G printer/Fax/Scanner •Fully functional ATM •Promotional materials •POS device •Marketing materials •Marketing materials •Card and Pin Mailers •Tables (2) and Chairs (7) •Promotional materials •Promotional materials •3 DSA’s per team •Marketing materials •4 FTE’s per BOW •Team Based Targets and •Promotional materials •Chairs and Umbrella’s Incentives •Training ATM •6 DSA’s per team Functionality: Functionality: Functionality: Functionality: •Account opening •Account opening •Account opening •Account opening •Basic Enquiries •Basic Enquiries •Basic Enquiries •Basic Enquiries •Mini Statements (future) •Mini Statements (future) •Mini Statements 43 •Mini Statements •Prepaid purchases (future) •Prepaid purchases (future) •Prepaid purchases •Prepaid purchases
    44. ABSA MOBILE CHANNELS 44
    45. COMPETITORS MOBILE CAPABILITIES 45
    46. MOBILE BANK ON WHEELS (BOW) 46
    47. TAKING BANKING TO THE PEOPLE DAVEYTON 47
    48. SALES FULFILLMENT PROCESS High level sales fulfillment process LG makes LG meets or LG interviews customer Customer accepts the proposal/s and contact with or interacts with for sale: Connect, completes the application forms, Record START sets up an customer and Needs analysis, of Advice and obtains all supporting appointment prompts the present solutions documentation. Customer signs all the with customer customer to handle objections and required documents (Close the deal). disclose financial cross sell *If available - issue card and pin mailer request/need SS captures the SS screens SS checks quality Sales Support clerk LG forwards all of the Record of Advice customers against and compliance (SS) receives the documents through to the online and CASA and opens adherence of all documentation and Sales Support clerk at the executes all other account on FBSS documentation records deal in Sales Support Hub/branch administrative register/DSAS duties SS calls the LG / customer Customer LG monitors LG sends original and informs them that the encouraged to progress of account documentation to account has been opened. Activated activate account activation and Hub/branch Account no provided. account Update records in updates verified & register / DSAS commission claim Commission form once account paid to LG is activated 48
    49. COMPENSATION STRUCTURE Fixed Salary R 3000 / £194 LG (ELB) Commission per Prod Team based targets Other Commission None Products sold Transactional Unsecured Lending Investments Basic Insurance Commission payable per LG 100% to target (195 NET Team products per team), R3000 per LG Quarterly Bonus None Quarterly Incentive (stretched 110% to target ( 216 NET products per team), R3000 per LG target) 125% to target ( 243 NET products per team), R9000 per LG OTE Monthly Ave Salary R7000/ £467 Fixed vs. Variable 43% remuneration split 49 OTE: Opportunity to Earn
    50. COMPENSATION STRUCTURE Fixed Salary R3000/ £194 LG (WPB, Core Middle Market) 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 None target) OTE Monthly Ave Salary R 10 320/ £ 688 Fixed vs. Variable 29% remuneration split 50
    51. COMPENSATION PHILSOPHY COMPENSATION PROGRESSION CHART 30000 COMMS RAND VALUE 25000 20000 15000 RAND 10000 5000 0 LG (ELB) LG (WPB) LG (ACQUISITION BANKERS) LG SEGMENTS • Allows for progression from ELB segment to Retail Affluent segment • Succession planning for MS • OTE: Opportunity to Earn as MS performs
    52. PRODUCTION VOLUME - QUARTER 1 PERFORMANCE Overall substantial increase in Performance – Cumulatively 112% to Target Jan Feb March YTD - Q1 Active Active Active Actual Target Sales Actual Target Sales Actual Target Sales Actual Target Staff Staff Staff WPB 3,624 1,875 113 6,431 5,008 120 5,977 9,569 130 16,032 16,452 AB 2,799 1,509 89 2,734 3,897 101 2,409 5,565 101 7,942 10,971 IB 1,037 1,219 61 902 2,461 63 2,393 2,817 70 4,332 6,497 ELB 24,130 13,365 540 38,092 26,059 749 33,903 38,052 804 96,125 77,475 124,43 111,39 Total 31,590 17,968 803 48,159 37,424 1,033 44,682 56,003 1,105 1 5 TOTAL Keys: ELB • WPB – Workplace Banking IB • AB – Acquisition Bankers • IB – Islamic Bankers AB • ELB – Entry Level Banking WPB NB: Productivity Includes 0 GRCB 20,000 Lead Generator 40,000 60,000 80,000 100,000 120,000 140,000 Value Added products Conference, London, 18 & 52 Actual 19 May 2008 Target
    53. PRODUCTIVITY RATIOS - QUARTER 1 PERFORMANCEAverage Product Volume Trends Positive – sound monthly product volumes per MS YTD Jan-08 Feb-08 Mar-08 AVE 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 Total Ave Product numbers sold p.m. per MS PERSON PRODUCTIVITY RATIOS 3 AVERAGE PRODUCTION Acquisition Bankers 26 2.5 2 LG (WPB) Islamic Bankers 22 LG (AB) 1.5 LG (IB) 1 LG (ELB) WPB Consultants 42 0.5 0 GRCB Lead Generator JAN FEB MAR ELB Lead Generators 44 Conference, London, 18 & 53 19 May 2008 MONTHS
    54. TECHNOLOGY & ENABLEMENTOptimal technological enablement solution per segment Technology Solution Targeted Areas Status Medium Term View Digital • Entry Level Banking • LAUNCHED • Implement nationally Pens • ESPs • WPB Kiosks Laptop • Core Middle Market • LAUNCHED • Implement nationally Kits • Retail Affluent • Islamic Banking • Mobile Sales Units • Bank on Wheels Card and • All NBS sales • LAUNCHED • Full implementation Pin environments Mailer Other • Entry Level Banking • IT LITE SOLN • Introduce alternative devices Devices LAUNCHED Fulfilment • All NBS sales • INTEGRATION • Implement ED Portal environments
    55. ENABLEMENT PLATFORM Technological Integration ensure a seamless end to end Sales fulfilment processNote: Integrated Service – accessed by AGO, NBS Support hubs, other SBU’s andES & WPB Sales Consultants
    56. KEY LEARNINGSSolid progress despite challenges experienced Positive Experiences Learning Curves – Volume production – Poor performance in Value targets – Variable compensation – Developing an accurate MI system to – Segmented sales force track commissions and daily production – “First Job Application” employees and – Attaining volume in certain targeted productivity product lines – Delivery channel positioning, e.g., – Bedding down technology enablement External Sales Points – Investment Consultants with limited – Bank on Wheels highly successful in transactional products to sell in targeted Student Market and event based market interventions – Lag in addressing poor performance due – Positive productivity and performance to bedding down of overall DSA model trends approach – Contribution towards “New to Bank” core customer growth
    57. LG BUSINESS SIMULATION PROGRAMME 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 Reflect Workshop Plan for Do Feedback/coaching action Pre-work Action (Product Planning Knowledge & Tool) Simulation Apply Application Execution 3 Simulated Analyze/present cycles 57
    58. SALES PERFORMANCE MEASUREMENT PROCESS Sales support Clerk receives application, Sales consultant Sales consultant submits conducts quality check complete application application to respective and then proceeds to with customer Sales Support Hub for captures application on processing. FBSS. Sales support clerk then captures details and status of application on Manuel Submission DSAS. • Digital Pens Technology: • Lap top Kit •Productivity by sales consultant The following status of the •Productivity by Sales DSAS system generates application can be captured Support productivity reports based on DSAS. •Productivity by Region on what has been captured • Approved •National Productivity. at the Sales Support Hubs. • Pending • Number of Sales per Sub- • Declined Product 58
    59. SALES COMMISSION PROCESS Detail report of all applications Sales consultant to complete Regional manager to send processed and approved is application with customer and validated report to national extracted from the DSAS system send application through to sale sales manager by the 3rd by the regional manager for the support hub for processing on working day of month. respective region and validated FBSS and capturing on DSAS. for accuracy by the second working day of the month. Business Analyst from Business analytics department to use spreadsheet received from National sales manager to National sales manager to collate all verify against the Absa data warehouse for activated validated regional reports into one status of transactional, unsecured lending, insurance, spreadsheet, verify for correctness and savings and investment products. Only valued added submit to Business Analytics department products will not be verified for activated status. by the 4th working day of the month. Once the business analyst has Commission will then be calculated for completed the commission calculation, all verified activated sales (in the case business analyst to send commission of value added products – only claims to General Manager (External applications captured as approved on Sales and Operations) for validation DSAS - will commissions be calculated and sign-off by the 7thth working of the for). 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. 59
    60. 1. Background MOBILE E-COMMERCE
    61. 1. BackgroundOVERVIEW 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
    62. 1. BackgroundMOBILE 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)
    63. 1. BackgroundBEST 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
    64. 1. BackgroundMOBILE GROWTH DRIVERS
    65. 1. BackgroundSOCIAL NETWORKS
    66. 1. BackgroundMAIN 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
    67. 1. BackgroundSERVICES IN MOBILE BANKING 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
    68. 1. BackgroundMOBILE 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 a) 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 a) 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
    69. 1. BackgroundMEASURING EFFECIENCIES OF MOBILE BANKING
    70. 1. BackgroundTRENDS IN USERS (2007, EUROPEON UNION BANKS)
    71. 1. BackgroundSMS 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
    72. 1. BackgroundCONSUMER PREFERENCES FOR SMS BANKING (2007, US)
    73. 1. BackgroundMULTIMODAL 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
    74. SESSION 3: Branch Strategy
    75. WHAT DO CUSTOMERS WANT?????? Customer  Most customers prefer to purchase in the branch Centric View  There are groups that are moving away from branches, and towards alternative channels, mobile sales force, cell-phone banking, internet  Excellent service Convenience  Convenience and accessibility & Understanding the needs  Feedback  Customers want products that are understandable and easy to transact with
    76. 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 Weaknesses  New Bank that has the flexibility to innovate and re-invent IT and Ops infrastructure the market place Speed to execution  NO legacy issues Recruitment of appropriate skills  New, innovative and strong retail management team Not an established brand  Cross border roll-out, implementation and execution  Achieve critical mass, representation Opportunity Threats Creating a well differentiated bank in a concentrated bank Global Economy Creating a NEW and leading brand NOT well diversified Product innovation and leadership Budget constraints Critical Mass Operational support at HQ Offer convenience, accessibility Lack of buy-in, change management Diversification on the income streams 77
    78. KEY DIFFERENTIATORS Branch design 24 hours zone concept incorporating enquiries, statement printing, ATM banking, internet banking Zone concept (transaction managed in zones, teller combined with enquiries) QMS Queue management system (QMS) CR2 Meeter greeter Innovation in the area of enquiries Customer relationship management Every customer has a relationship manager (the size of the portfolio depends on the customer segment) CRM One person responsible for customer cross sell and up sell activities MIS Portfolio targets connected to performance management system Introduction of standardized CRM programs for a) new customers, b) customer life cycle tree and c) product activation, usage and balance build. Service quality management SLA´s for branches and call center introduced and measured from the beginning WFM Documentation & Data workflow management Usage of electronic documentation and data workflow system for all customer products application, contracts, filing Distribution system (no paper, minimize operation risk) Product Partnerships Increasing BancABC market share, profitability and critical mass 78
    79. HUB N SPOKE MODEL KIOSK Bank on BancABC Wheels @WORK INTERNET Flag branches provide the brand equity Various Channels offer convenience and accessibility Call This helps achieve critical mass Branch Messaging 3rd POS Educating clients on various channels Centre PARTY Increasing usage and transaction CELLPHONE BANKING DSA SUITES ATM 79
    80. COMPETITORS BANKS –DIAMOND BANK 80
    81. COMPETITORS BANKS –DIAMOND BANK 81
    82. COMPETITORS BANKS –DIAMOND BANK 82
    83. COMPETITORS BANKS –DIAMOND BANK 83
    84. INTERNATIONAL BANKS 84
    85. INTERNATIONAL BANKS 85
    86. INTERNATIONAL BANKS 86
    87. INTERNATIONAL BANKS 87
    88. INTERNATIONAL BANKS 88
    89. INTERNATIONAL BANKS 89
    90. INNOVATIVE BRANCH DESIGN 90
    91. CUSTOMER JOURNEY THROUGH A BRANCH 1. 24 hour zone 2. Meeter Greeter 3. Merchandising zone 4. Cash zone 5. Consultation 6. Customer zone 7. Back office & Cash management (Safes) 8. Staff area 91
    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 92
    93. DETAILS OF THE OUTLETS LINK..... 93
    94. BRANCH SERVICESType of branch Cash in Cash out Account opening Cheque Stateme Enquiries Forex BC DC in the system collection ntsKiosk On-line Mini branch      Retail outlet      Retail branch        Universal branch         SME Center     Mortgage Center    94
    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 95
    96. PORTFOLIO MANAGEMENTSub segment Portfolio size per 1 Catchments area /target potential Reporting line Other comments RMMass 800 – 1.000 Based on Sales Activity Plan Branch manger (disciplinary and Segment Mass & Top Mass will be covered by Growth per year functionally) Senior RM Mass until the critical mass is reachedTop Mass 400 – 600 Based on Sales Activity Plan Branch manger (disciplinary and Growth per year functionally)Affluent 250 – 400 Based on Sales Activity Plan Branch manger (disciplinary and For launch we will have standalone RM for Growth per year functionally) affluentSME 400 – 600 Based on Sales Activity Plan Branch manger (disciplinary and If the target segment is not sufficiently big Growth per year functionally) the branch manager will substitute the role until the portfolio reaches 80 customers.Professionals (if 250 – 400 Based on Sales Activity Plan Branch manger (disciplinary and If target segment is not sufficiently big the stand Growth per year functionally) SME RM will substitute the role until the alone portfolio reaches 100 customers. position)Corporate (in a TBC TBC TBC universal branch)Corporate TBC TBC TBC (serviced from country 96 HQ)
    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 SME Segment Mass & Top Mass will be covered by Senior RM Mass until the critical mass is reached 97
    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 SME Segment Mass & Top Mass will be covered by Senior RM Mass until the critical mass is reached Bulk cash will be installed only if required for servicing Corporate customer. 98
    99. SESSION 4: Alternative Banking Strategy
    100. ALTERNATIVE DISTRIBUTION “Segmented AD Channel focus providing multiple options of delivery” 100
    101. ALTERNATIVE DISTRIBUTIONType Design Number Functionality Fulfilment Segment Location of StaffKiosk •Rectangular or 2 options as supplied 2-4 DSA’s •Account opening On-line Personal Bank Large corporate offices orLarge by vendor •Basic Enquiries Desk top segments Government departments •Merchandising •ATM PDA Or where there is high traffic volume. •Point of Sale •Mini statement Scanner •LCD screen •Leads Management Printer •2 X workstations(hardware, printer, •Cheque collection Bio-metric scanner, fax, camera) reader •2 staff chairs Pin reader •4 customer bar stools/tables Camera •ATM-small •POS deviceKiosk •Rectangular, Square, Oval, or 2 2 DSA’s •Account opening On-line Can be Shopping centresSmall options as supplied by vendor •Basic Enquiries Desk top segmented Retail outlets, via cooperatives •Merchandising •ATM PDA based on Corporate offices •Point of Sale •Mini statement Scanner identified Where there is high volume traffic in •1 X workstations(hardware, printer, •Leads Management Printer cooperative, defined segments scanner, fax, camera) •Cheque collection Bio-metric alliance, etc •1 staff chairs reader •2 customer chairs/tables Pin reader •ATM-small Camera •POS deviceBank •Vehicle that caters for security, 3DSA’s, 1 •Account opening On-line ALL segments All dedicated sites which caters foron transport and flexibility Driver •Basic Enquiries Desk-tops based on security and customer experienceWheels •Merchandising •Cash deposit Scanner deployment •Point of Sale •Withdrawals Printer strategy •2 X workstations(hardware, printer, •Mini statement Bio-metric scanner, fax, camera) •Leads Management reader •3 staff chairs •Consumer Education Pin reader •4 customer chairs/tables Camera •ATM-small, ramp •POS device •LCD, DVD combo •Bullet proof glass •Gazebo •Generator 101 •Satellite link •PA, sound system
    102. ALTERNATIVE DISTRIBUTIONMobile •1X Vehicle 8-10 •Account opening Off-line Events ONLYSales •1X Gazebo DSA’s, 1 •Basic Enquiries Lap-topsUnits •Merchandising driver •Mini statement PDA •Promotional material •Leads Management Copier •Laptop, Copier, scanner, camera •Consumer Education Scanner •1X Gazebo •Acquisition strategy Camera •2 tables •2 staff chairs •4 customer bar stools •Consumer Education •LCD, DVD •PA, sound systemExternal •1X Gazebo 2 DSA’s •Account opening Off-line Events ONLYSales •Merchandising •Basic Enquiries LaptopsPoints •Promotional material •Mini statement PDA •Copier, scanner •Leads Management Copier •2 tables •Consumer Education Scanner •2 staff chairs •Acquisition strategy Camera •4 customer bar stools •PA, sound systemBank in •40ft or 20 ft Container 1X •Account opening On-line Personal Bank Before branch opens in a designateda BOX •1X large ATM Supervisor •Basic Enquiries Desk top segments area/region. •Server Room 2 X Tellers •ATM PDA Or Rural areas •Satellite (GPRS) link 2 X •Mini statement Scanner Specific segment, Where sourcing locations becomes •Rectangular or options as supplied by relationshi •Leads Management Printer e.g. challenging vendor p •Cheque collection Bio-metric SME, Mortgage, •Merchandising Managers reader etc •Point of Sale 2 X DSA’s Pin reader •LCD screen Camera •2 X Sales workstations(hardware, printer, scanner, fax, camera) •2 X Teller workstations(hardware, printer, scanner, fax, camera) •1X safe •2 staff chairs (sales) •2 staff chairs (tellers) •2 X customer bar stools (teller) •1X Generator •Air-con unit •Municipal requirements, and contractor to lay concrete foundation 102Other As recommended by vendor
    103. LARGE KIOSKS 103
    104. SMALL KIOSKS 104
    105. BANK IN A BOX 105
    106. BANK IN A BOX 106
    107. MOBILE SALES/MARKETING FORCE “Segmented Sales Force to support Retail Branches” Call Centre The purpose of BancABC@Work Direct Sales banking is to provide convenient unique value propositions for the employees in the workplace DSA: Work Place Banking / AD The purpose of Direct Sales is to acquire Outbound Sales Teams DSA: Top Mass / Mass Inbound Sales Teams business outside of the traditional branch DSA: Retail Affluent Leads Management network and provide customers with additional and often non traditional channels to do DSA: SME business with ABC The purpose of the CC is to optimise use of telephony to acquire new, cross sell existing customers and to support external sales staff Development of compelling and competitive value propositions for workplace and direct sales Providing qualified leads to the DSA teams Direct Sales Leads Management BancABC@work– “Bank conveniently “Managing daily “Bank conveniently at home/community” activity” at work” 107
    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 108
    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 109
    110. BANK@WORK Provision of banking services to company employees at their place of work. The work place bankingchannel must be a online banking operation catering for types of branch transactions and services. Cashhandling in terms of over the counter deposits and withdrawals is not available through the work place banking channel (ONLY via ATM). 110
    111. BANK@WORK....ADVANTAGESEmployers: Employees: Financial Services Provider:• Improving and extending • Employees can access financial • Access to a larger potential regular existing benefits/packages services products and services• Little or no extra cost for earning customer base on a beneficial basis • Partner with key employers to provide the employer • Convenience for employees• Relief of the employer • Advice on more complex bulk services to lower cost and administration improve customer experience financial service offerings• Employers participation • Can offer concessions and lower costs • Usually provides access to a offers employees a to customers on basis of lower larger range of products convenient way to bank • Packages can be customised delivery cost• Assists with worker • Access to payroll deductions • Financial literacy training on • Cross-selling opportunities productivity site enables employees to• Could be used as a benefit • Grow with the customers make informed choices to lock-in the worker 111
    112. BANK@WORK Banking Solutions Internet, Telephone, Cellphone and Direct Sales Agents and Alternative Direct Sales & Service Delivery Transactional Solutions Lending & Credit Solutions Contact Centre/Telephony ATM Banking Solutions Points of Presence E-Channels Savings & Investment Risk Protection Solutions Solutions Value Added Services Financial Education 112
    113. SALES ACTIVITY PLANNING PROCESS What is the market Potential, per KPI”S segment END IN MIND END IN MIND Activities planned to penetrate Leads Management Process the target market ATL, BTL Planned campaigns Completed 3-4 months advance 113
    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 114
    115. SALES MANAGEMENT PROCESS Activities: • Setting appropriate individual ACTIVITIES 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 Referrals o Sales pipe-line o Sales board o Evaluating specific marketing actions 115
    116. SALES MANAGEMENT PROCESS 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 PORTFOLIO 116
    117. SALES MANAGEMENT PROCESS 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 Referrals o Sales pipe-line o Scorecard planners o Sales board o Evaluating specific SALES marketing actions 117
    118. SALES MAP PLANNING ACTIVITIES ACTION X FREQUENCY = RESULTS PORTFOLIO SALES 118
    119. ENTIRE SALES MANAGEMENT PROCESS PLANNING ATTRACTING CLOSURE Where do we get the business, What campaigns to attract the target market, propensity target market Needs analysis to closure for business ATL BTL 119
    120. SESSION 5: E-Channel Strategy
    121. E-CHANNELS – WHERE DO THEY FIT Customer Data & Insights Customer Customer Segments Blue Silver Gold Private SME Corporate Customer value propositions Internet Branch ASD ATM Website Banking Cellphone POS CCC Distribution Channels Sales and Channel Management Customer Service Messaging Personal SME Corporate Product • deposits, savings • deposits, savings • deposits, savings • Transactional • Transactional • Cash management • Consumer finance • Consumer finance • Transactional • Cards • Cards • Forex • etc • etc • etc 121
    122. INTEGRATED CHANNEL MANAGEMENT DELIVERED BY CR 2 122
    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 1. Our own customers can transact on our own ATMs (Us-on-Us transactions) and on competitor ATMs (Us-on-Them transactions) 2. 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%?) 3. To cover the transaction distribution continuum, thus increasing coverage and convenience for customers, we will provide cost effective solutions to cover the range 123
    124. GUIDING PRINCIPLES (SET 2/3) 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 model 8. 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 above This 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 124
    125. GUIDING PRINCIPLES (SET 3/3) 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 machines 10. The priority in ATM placement is as follows: • Servicing our customers • Supporting customer acquisition 10. Outsourcing the ownership of ATMs is not recommended because It is less profitable than the Bank owning and running its own ATM service 11. Customers will have a holistic view of their relationship (products and services) with BancABC 12. All leads, new product sales and transaction revenues earned will be credited to the domicile branch 125
    126. OBJECTIVES - A BALANCED SCORECARD APPROACH Increase Non- Interest Income 1. Deliver cost effective growth in ATM transactions aligned to customer Financial FN1 growth – target cost-to-income ratio of 50%? Control Operating 2. Complement the branch by lowering cost of operations (reduce cost-to- Costs income ratio) FN4 1. Customer aligned ATM distribution/coverageCustomer Excellent Customer Service Location of ATMs CT1 Accessibility/visibility of sites 2. Deliver customer-friendly ATM interface and functionality resulting in less Innovative Tailor Made Solutuons than 1% system failed transactions CT2 3. Deliver innovative, value-added services on ATM 4. Deliver 98% ATM service availability Develop Products that 1. Deliver customer-friendly ATM interface and functionality resulting in lessInternal Process meet Customers needs IP2(b) than 1% system failed transactions Intimate Knowledge 2. Deliver one-view of customer, one-view of back (holistic relationship of our Customers customer with XYC) IP1(c) 3. Conduct customer feedback sessions every month and act on the feedback Continuous Customer 4. Deliver 98% ATM service availability Feedback IP1(b) Increase IT Uptime IP3(d) 126
    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) 127
    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) 128
    129. OFF-SITE ATM DEPLOYMENT PROCESS Commis Valida Secur Prepa Install Site identification sion te e re ATM ATM -Field analysis -Site plans -Retail activity -Construction -Branch network -Communication -Foot flow -System entries -Competitor activity -Service providers -Security (building, cash servicing etc) -Accessibility -Visibility -Power and communications -Rentals 129
    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 130
    131. ATM MONTHLY TRANSACTION DISTRIBUTION CONTINIUM1 4001 2001 000 No of potential sites No of potential sites 800 600 400 200 0 500 800 1000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 11 12 > 13 No of potential transactions / site / month000 131 000 000 000
    132. MARKET STATS – VISA TRANSACTIONS 132
    133. MARKET STATS – NO OF VISA ATMS 238 ZIMBABWE 217 172 ZAMBIA 111 180 TANZANIA 99 415MOZAMBIQUE 382 284 BOTSWANA 245 0 50 100 150 200 250 300 350 400 450 YE 2007 Q2 YE 2008 Q2 133
    134. MARKET STATS- NO OF VISA ATMs1.80%1.80% $250,000 $250,0001.60%1.60%1.40%1.40% $200,000 $200,0001.20%1.20% $150,000 $150,0001.00%1.00%0.80%0.80% $100,000 $100,0000.60%0.60%0.40%0.40% $50,000 $50,0000.20%0.20%0.00%0.00% $0 $0 BOTSWANA MOZAMBIQUE BOTSWANA MOZAMBIQUE TANZANIA TANZANIA ZAMBIA ZAMBIA ZIMBABWE ZIMBABWE Interchange revenue Interchange revenue Share of BancABC ATMs -end 2009 Share of BancABC ATMs -end 2009 134
    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) 135
    136. WEBSITE OBJECTIVESInformational 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 136
    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) 137
    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 138
    139. END OF DAY 1HAVE BANKS COMPLICATED WHAT CUSTOMER SIMPLY WANT 139
    140.  Day 2  Session 1: Segmentation Case Study & Exercise  Session 2: CRM & Process Management Case Study & Exercise  Session 3: Performance Matrix Case Study & Exercise  Session 4: Fraud & Security Methods Case Study & Exercise  Session 5: Branding, Social Media 140
    141. 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 142
    143. SEGMENTATION GROUPS PreferredDowngrading Growth Pattern (Upgrading) 143
    144. SEGMENTATION GROUPS - CORPORATE Preferred Downgrading Growth Pattern (Upgrading) 144
    145. SEGMENTATION METHODS  Geographic variables  Demographic variables  Psychographic variables  Behavioral variables 145
    146. SEGMENTATION CRITERIA - INDIVIDUALS Geographic Will Demographic Will Psychographic Will Behavioral Will a Variables ABC Variables ABC Variables ABC Variables bank use use use use them? them? them? 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/Professi Yes Account bal. Yes on Nationality Yes Memberships Yes Religion Yes Risk profile Yes Language Yes Marital Status Yes Race Yes Residential status Yes 146
    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 ?? 147
    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/Self 600 601+ Employed Professionals 148
    149. CUSTOMER SEGMENTATION PROCESS STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 Assess which group Assess per group Create Assess the value of Stratify or group Define the full of customers to of customers the segments of potential of the each customer customers based target based on unique attitude customers on their potential market potential size, or behavioral with the mix of usage potential revenue variables of same needs (Life Time Value) and customers values and share of voice wants How many Assess the relative •From where are the •Define the •Ego driven, $ Select the customers are importance of new customers characteristics of driven, convenience segmentation which there in the each customer in coming? (I.e. what each segment (e.g. driven, service most effectively defined market terms of either the is the referral average driven, scientific groups customers What (validate source) number of pattern / who refers? size/potential, key driven, etc... with the same needsquestions customers or Based on what? purchasing factors, Your segmentationdo I need usage •Identify in each ways should offer each :to answer •through sales stratus the new Life to influence •Measurability - theand what visits / Market Data Time Value of the decision making) size & purchasingdo I need •What is the market customer •what is the size of power of the to do? we serve & who are •Which competitors each segment? segments must be all the customers are targeting these •Is it homogenous? measurable who may benefit same customers? •How do •Accessibility - it from our product? salespeople must be possible to Are we missing any interact with reach & serve the customers (I.e. customers in the segment those traditionally market and what •Substantiality - the served by our are the key market segments must be competitors)? drivers? large & profitable 149
    150. CUSTOMER SEGMENTATION PROCESS STEP 7 STEP 8 STEP 9 STEP 10 STEP 11 Validate the selected Target the most Which product / Decide on product Develop for each segmentation attractive segments brand is being used positioning for customer in targeted approach based on potential by each customer in each of the segments a plan with size and potential target segments targeted segments an objective , tactics revenue (validate sources) and action plans. Consider •How easy will it be to · Check whether needs supporting convert customer in are being addressed evidence for your each segment segmentation segment to our • How to overcome products? the hurdles for using What Does the market •How responsive is our products ?questions really work thedo I need way you have the segment to marketing actions? • Assess cost for eachto answer segmented? action plan and decideand what •Are the most •What would be the whether it is feasible,do I need successful cost of serving the to target the segment to do? competitors taking segment? a different •How are the •Review regularly segmentation competitors targeting whether the needs approach? these customers? and wants are •What market data •Evaluate satisfied profitably do you need to attractiveness of each confirm current segment •Review regularly the segmentation? size of the segments, the needs and wants of each customer. 150
    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 151
    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 152
    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 153
    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 154
    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 155
    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 156
    157. SEGMENTATION MONITORING TOLLS  Assessment  Observation  Statistics 157
    158. SEGMENTATION MATRIXBusiness line Retail Banking Corporate Banking Personal Private Profes- SME Financial GovernmentSegment Companies Non Gov.Org Banking banking sionals Banking institutions Org Doctor Local Banks Churches Provinces Blue Main Dentist Micro Medium Foreign Embassies Regions (Mass) customer Pharmacist enterprises corporate Banks Trusts Towns Vets Leasing Donor Org Lawyer Silver Family Small Large Insurance Pvt Schools Cities Notary (Top Mass) Cluster enterprises corporate Micro Pvt Hospitals Other Finance Geologists Pension Sub Medium Pvt Gold Architects Multi Funds Gvt HospitalsSegment size Universities (Affluent) Engineers nationals Asset Mgrs Gvt Schools enterprises MBA Schools Accountants Building Auditors Gvt Societies Charitable Org Bus.& Fin. Universities Investment Civic Bodies Consultants Other Gvt Banks Other NGOs Orgs Other FIs. Sports- Persons Journalists 158
    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 159
    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 Building Insurance Leasing Asset Managers Societies Traders Food Clothing Building Drugs Supermarkets Households Materials Agriculture Crop Farming Livestock Forestry Horticulture Grains and Fertilizer farming And Logging Oils seeds companies Mining Precious Quarry Mining Natural gas stones Media Publishing Media houses Advertising Broadcasters Houses Transport Car Fleet owners Car plants Storage Car hire Container Dealerships And Transport Leasing Tourism Hotels Lodges Airlines Travel agents Restaurants Safari Camps 160
    161. SEGMENTATION CRITERIA – SME & CORP No of Loan size employees Turnover Sector if Segment Sub segment from up to from up to from up to applicable Micro enterprises $0 $10 000 0 10 $0 $40 000 Small enterprises $10 001 $100 000 11 25 $40 001 $400 000 Medium size SME enterprises $100 001 $250 000 26 100 $400 001 $1 000 000 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 Corporate Multinationals $1 000 001 501 $4 000 001 161
    162. SEGMENTATION CRITERIA – PERSONAL & PVT Income Liabilities Assets Group if Segment Sub segment from up to from up to from up to applicable Blue $0 $1 500 $0 $10 000 $0 $20 000 Personal banking 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 Platinum $20 001 $40 000 $100 001 $500 000 $200 001 $1 000 000 banking Super Rich $40 001 $500 001 $1 000 001 162
    163. 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 164
    165. INTEGRATED APPROACH SILO EFFECT LARGE RETAIL BANK PRODUCT PRODUCT PRODUCT PRODUCT DIVISION 1 DIVISION 2 DIVISION 3 DIVISION 4 BRICK n MORTAR BRANCH CALL CENTRE E-CHANNELS & M-COMMERCE VIEW OF VIEW OF VIEW OF VIEW OF CLIENT CLIENT CLIENT CLIENT NOT INTEGRATED NOT INTEGRATED 165
    166. INTEGRATED CRM APPROACH • 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. • Process and workflow management will enable a consistent customer experience. • It will ensure faster turnaround times for account • Document management which will minimise the use of application and fulfillment. paper as well as reduce the storage and archiving costs. • There will be fewer mistakes due to the standardized and automated processes • Accurate customer reporting and real time tracking.
    167. CHANNEL IMPACT VIA A CRM SYSTEM Enhanced Knowledge Segregation of Tasks & Role of Customer Based Access + audit trail Building Customer Retain & Manage Credit Loyalty Application & Grow Manage Fulfillment Manage Campaigns Customers channel Manage & store via a channel risk KYC Manage Manage Verification New and Security Business Perfection Effective operational & channel Manage staff Document productivity management management & management & workflow Monitor SLAs Manage service requests
    168. INTEGRATED CHANNEL VIEW/ARCHITECTURE EUPHORIA Touch CustomerCore banking Data Customer Analytical Communication Optimization Point Touch systems Integration Central Data Store Engines Integration Point Flat - Mobile ExplorationWeb servers Marketing Unstructured warehouse Flexible Exploration Campaign Application Balance Servers Holistic - 360 Customer Management Touch Point View Statistical Delivery Integration CRM Single Point of Truth for Modeling Customer Information Marketing Web Call centre Predictive Data Mart Server Relationship Extract ModelingApplication Transform CRM Maximize servers Load Credit Mart Long Mart Lead Term Group Single Generation Value & Messaging Staging 1 Contact & view by Interest Interaction Email / State Card Management Internetmanagement Change, Events Staging 2 Data warehouse Triggers or Filters Opportunity Mail & SMS other Customer Exclusions Server CR2 Techniques Customer Snap shots & Best Offer Segmentation History Right time Staging 3 Preferred Snail mail Other Channel Single Auditable Internet Flexi cube bankingcore banking source Extract Traceable system Control Meta Data Business Rules Blackberry Branch Direct CRM Strategy 3rd party Customer BI and Reporting sites BI Tools Reports OLAP Retention & Acquisition Units Response Feedback - Closed Loop
    169. SINGLE VIEW OF CUSTOMER
    170. FINANCIAL PROFILE
    171. KYC
    172. Interaction monitor
    173. The “Learning Relationship” – Ongoing service excellence Customer tells Save you what he me wants time FEEDBACK You tailor your product, service, or elements associated with it The more effort the customer invests, the greater their stake in making the relationship work.Now the customer finds it more convenient to remain loyal, rather than re-teach a competitor
    174. WORKFLOW COMPONENTS
    175. 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 176
    177. 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 178
    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) 179
    180. 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) 181
    182. IN SUMMARY S- STRATEGY I - IMPLEMENTATION M- MONITORING P- PEOPLE L- LEARNING FROM YOUR MISTAKES E- EVALUATING 182

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