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Integrative solution for BMO Credit Card
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Integrative solution for BMO Credit Card

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  • 1. BMO Credit Cards: An integrative solutionTatjana | Jen | Ramanan | Andrew | Pramod Team 28
  • 2. How can BMO improve efficiency andcustomer service? Issuing Customers Partners Master Card Institution Flex Card Salient Features: Salient Features: - ability to customize -variety of reward credit card programs -additional marketing -core competency BMO FLEX MasterCard®
  • 3. Causal Model: Customer Retention & Acquisition • Exclusivity Elite Snob Value Cards • Dealing with trustworthy party EMOTIONAL NEEDS • Control/track expenses Multiple • Reward/loyalty program SECONDARY cards • Convenience of shopping NEEDS • Conduct transactionsBASIC NEEDS • Delay actual cash outflow • Short term loan
  • 4. Causal Model: Customer Retention & Acquisition Elite Snob Cards Value Emotional EMOTIONAL • Cherry pick/add/drop rewards NEEDS Needs • Dealing with trustworthy party • Control/track expenses SECONDARY NEEDSBASIC NEEDS
  • 5. Credit Card Application & Usage Process Flow: DecompositionModel 2 Model 1/2 Model 1/2 1. SEARCH 2. APPLY 3. APPROVAL- Review alternatives & - Branch / Kiosk / PROCESS identify the best fit Online - Issuing institutionModel 1 Model 1 Model 1/2 6. MODIFY PLAN 5. REDEEM POINTS 4. USE - Opportunity to - If approved: Start update the plan using the card
  • 6. Step 2: Application ProcessFIRST STAGE – Model 2 BMO Flex Card Interface- User is matched with most Total Allocation Units: 1,000 Additional Cost: $0 suitable plan SPEND: EARN:- Interface fields are - Grocery Points: -  Market research prepopulated with default x 1 ☐ x 2 - Receive information - Air Miles: promotional offersSECOND STAGE – Model 1 ☐x 1 ☐ x 2 (emails): + Car Rental Insurance 10/month- Allocation units are used to + Road Side Assistance ☐20/month customize the plan - Interest rate: POINTS STATUS:- Units: base amount + reward 19% Grocery points: 2,000 for credit card loyalty + reward Air Miles: 24,000 for additional products with BMO
  • 7. Steps 3 & 4: Approval & Use • Similar to Model 1 & 2 process3. Approval • The applicant is either approved or rejected • Model 1 & 2: If approved - start using the card 4. Use • Model 1: 2-weeks grace period: opportunity to modify the plan
  • 8. Steps 5 & 6: Redeem Points & Modify Plan • Similar to Model 1 process5. Redeem • Close match with the reward system • Rewards are useful & can be redeemed quickly • Builds on Model 1 customization • Opportunity to modify the plan after one year 6. Modify • Customers have different needs during different stages of life • No need to switch to a different card
  • 9. What are the barriers to the integrativesolution? Set-up costs are sustainable BMO No loss of What would customers due to complications have to be true for the proposed Partners can Partners accommodate model to work? annual changes Customers will not perceive new process as Customers complicated
  • 10. How to determine if the statements holdtrue? • Identify any existing interfaces that can be used Testing the for the Flex Card • Obtain quotes for additional development and interface set assess development time up • Assess cost of training employees • Complete cost benefit analysis • Conduct a pilot project and invite selected Testing existing customers for trial • Maintain feedback loop to allow customers to complication comment on service of process • Invite new customers to sign up for the service and begin phasing out existing cards
  • 11. How does Flex Card Create Stakeholder Value? Model #1 Model #2 Proposed Solution Branded Bank Issued Flex CardIssuingInstitutionCustomerMasterCardPartners
  • 12. How does the Flex Card Add Value to BMO? Increased • Easy to bring new features/rewards to market • Marketing and promotion Efficiency • One card replaces multiple cards PARTNERS CUSTOMERS Higher • Incentive for customers to use Flex Card • Increased card loyalty Profits • Revenue from new partners