Cross Selling Opportunities In Banking Industry Fortis Bank Elif Hande Gürsoy Hande Arpalıgil Özge Şahlanan Seher Sinem Aşkın Tutku Rüya Özmen MKTG 452 Customer Relationship Management Dr. Lerzan Aksoy

CRM Trend: Being customer focused Originated from CRM: Customer Relationship Management This management approach includes the people, process and technology CRM adopting a strategy based on what the customers tells and what else is known about that customer. associated with marketing, sales & services.

Trend: Being customer focused

Originated from CRM: Customer Relationship Management

This management approach includes

the people,

process and

technology

CRM

adopting a strategy based on

what the customers tells and

what else is known about that customer.

associated with

marketing,

sales &

services.

Cross Selling What? to identify customers who will buy a specific product with high probability when offered as a result of observed purchase behavior Why? the opportunity of cross selling is one of the tools that makes CRM a profitable management strategy . How? gather as much as USEFUL information about the customer

What? to identify customers who will buy a specific product with high probability when offered as a result of observed purchase behavior

Why? the opportunity of cross selling is one of the tools that makes CRM a profitable management strategy .

How? gather as much as USEFUL information about the customer

Opportunity of Banking Industry Source:Impact of Industry and Degree of Interaction Lerzan Aksoy

Purpose of the study To examine a cross selling opportunity for banking industry with the knowledge about the customer that banks posses via credit cards. age, name, location, marital status, number of children, income, monthly spent money, purchasing behavior, shopped stores, bought items, eaten places, desired foods, etc..

To examine a cross selling opportunity for banking industry with the knowledge about the customer that banks posses via credit cards.

age,

name,

location,

marital status,

number of children,

income,

monthly spent money,

purchasing behavior,

shopped stores,

bought items,

eaten places,

desired foods, etc..

Company Analysis: Fortis General Fortis: solid, strong, resolute 20 th largest financial institution in Europe 39 billion Euro market capitalization Develop its banking activities by buying banks In 2005 bought Dışbank’s 93.3% of shares Fortis groups value had reached in 2005 31,4 billion Euro and 56 thousand of employee Fortis aims to be a leading financial institution in Europe

Fortis: solid, strong, resolute

20 th largest financial institution in Europe

39 billion Euro market capitalization

Develop its banking activities by buying banks

In 2005 bought Dışbank’s 93.3% of shares

Fortis groups value had reached in 2005 31,4 billion Euro and 56 thousand of employee

Fortis aims to be a leading financial institution in Europe

Company Analysis: Fortis CRM The CRM project in Fortis Türkiye, mainly, focuses on two main objectives To align with retail concepts such as Better and faster service to customer View the customer as a whole with his products and personal information Customer of the bank not only a branch To simplify operational efforts/processes and minimize operational costs Convert inbound channels into profit generator Create single version of the truth for Fortis Türkiye

The CRM project in Fortis Türkiye, mainly, focuses on two main objectives

To align with retail concepts such as

Better and faster service to customer

View the customer as a whole with his products and personal information

Customer of the bank not only a branch

To simplify operational efforts/processes and minimize operational costs

Convert inbound channels into profit generator

Create single version of the truth for Fortis Türkiye

Company Analysis: Fortis CRM 2 CRM Road Map was developed by considering the main objectives and the needs of different departments After the alignment between the departments the sub-projects of the road map were defined

CRM Road Map

was developed by considering

the main objectives and

the needs

of different departments

After the alignment between the departments the sub-projects of the road map were defined

Competitor Analysis Competitors are analyzed in terms of Cross-sell Up-sell CRM applications Direct competitors of Fortis Garanti Yapı Kredi Akbank HSBC

Competitors are analyzed in terms of

Cross-sell

Up-sell

CRM applications

Direct competitors of Fortis

Garanti

Yapı Kredi

Akbank

HSBC

Creates new sales opportunities by cross-selling to existing customers telemarketing (Alo Garanti Telephone Banking) to customers acquired through salary payments Efficient use of CRM and data mining. Observation of buying behaviors. Won CRM Oscar (Customer-centric Technology Use / Most Advantageous Customer Program): Garanti Payment Systems / Bonus Plus-Premium Competitor Analysis

Creates new sales opportunities by cross-selling to existing customers

telemarketing (Alo Garanti Telephone Banking)

to customers acquired through salary payments

Efficient use of CRM and data mining.

Observation of buying behaviors.

Won CRM Oscar

(Customer-centric Technology Use / Most Advantageous Customer Program): Garanti Payment Systems / Bonus Plus-Premium

Telephone banking (response rate:12%) Integrated, multi-channel CRM strategy Interacts with customers via direct mail, e-mail, WAP, web sites, and digital television. Increased profitability and effectiveness. Used SAS’ Enterprise Miner software. Competitor Analysis

Telephone banking (response rate:12%)

Integrated, multi-channel CRM strategy

Interacts with customers via

direct mail,

e-mail,

WAP,

web sites, and

digital television.

Increased profitability and effectiveness.

Used SAS’ Enterprise Miner software.

CRM with Axess: Aim to prepare campaigns that are suitable to the needs, lifestyles, and desires of customers. By analyzing the profile of the customers who use Axess, Akbank Competitor Analysis

CRM with Axess:

Aim to prepare campaigns that are suitable to the

needs,

lifestyles, and

desires

of customers.

By analyzing the profile of the customers who use Axess, Akbank

First started at marketing department in Later, the applications spread through the whole organization. thanks to the senior management Trained and rewarded the employees for a more customer-centric approach Via call centers Competitor Analysis

First started at marketing department in

Later, the applications spread through the whole organization.

thanks to the senior management

Trained and rewarded the employees for a more customer-centric approach

Via call centers

Industry Analysis Number of Banks Operating in Turkey Between 1980-2005 http://www.tbb.org.tr/turkce/abf/19052006/EBF%20Turkish%20economy%20and%20anking%20sector%200506.pdf

Industry Analysis http://www.tbb.org.tr/net/donemsel/ 6.308 47 6.247 47 6.106 48 Total 19 13 19 13 18 13 Investment Banks 415 13 393 13 209 13 Foreign Banks 1 1 1 1 1 1 Savings Deposit Insurance Fund 3.836 17 3.799 17 3,729 18 Private owned 2.037 3 2.035 3 2.149 3 State owned 6.289 34 6.228 34 6.088 35 Savings Bank Branches Banks Branches Banks Branches Banks March 2006 December 2005 December 2004

Industry Analysis Branch and Personnel Growth between the fourth quarter 2002 to fourth quarter of 2005

Data Collection: Survey Preparation In the preparation stage of the survey, we figured out questions to grasp the specific shopping habits of consumers. Questions were aimed to find correlation between certain goods. The result of the survey will guide us to apply which products to cross-sell.

In the preparation stage of the survey, we figured out questions to grasp the specific shopping habits of consumers.

Questions were aimed to find correlation between certain goods.

The result of the survey will guide us to apply which products to cross-sell.

Data Collection: Participants WHO? students of 4 universities between the ages of 18-25 using credit cards while shopping. WHY? Future’s ‘valuable customers’ This group has high purchase rate at this age They are expected to have high incomes in the future So, high spending rates. High CLV: they will be a bank’s customer on average 45 years They are 18-25 yrs old They will probably live until they are 70

WHO?

students of 4 universities

between the ages of 18-25

using credit cards while shopping.

WHY?

Future’s ‘valuable customers’

This group has high purchase rate at this age

They are expected to have high incomes in the future

So, high spending rates.

High CLV: they will be a bank’s customer on average 45 years

They are 18-25 yrs old

They will probably live until they are 70

Universities Yeditepe University, Bilgi University, ITU and Koç University. Students from Different grades Different majors Data Collection: Sample

Universities

Yeditepe University,

Bilgi University,

ITU and

Koç University.

Students from

Different grades

Different majors

Primary data is collected Via e-mail and one to one 2 weeks Survey questionnaire is designed as measuring instrument A sample of 60 university students are surveyed Data is analyzed by SPSS Frequency analysis, findings are presented by tables and charts. Data Collection: Methodology

Primary data is collected

Via e-mail and one to one

2 weeks

Survey questionnaire is designed as measuring instrument

A sample of 60 university students are surveyed

Data is analyzed by SPSS

Frequency analysis, findings are presented by tables and charts.

Results:

Results:

Results :

Results :

Results :

Results:

Results: Promotional coupon has the highest ranking

Promotional coupon has the highest ranking Results :

Promotional coupon has the highest ranking Results :

PREFERRED OFFER WHILE PURCHASING PACKAGED FOOD Results :

Results :

Results Average amount spend for GSM expenditure is 85 YTL With a standard deviation of 73 YTL About 76 % of them are paying at most 100 YTL of their cellular phone spending by their credit card 65 % of cardholders have fixed line cellular phone 35 % of cardholders have advance payment cards

Average amount spend for GSM expenditure is 85 YTL

With a standard deviation of 73 YTL

About 76 % of them are paying at most 100 YTL of their cellular phone spending by their credit card

65 % of cardholders have fixed line cellular phone

35 % of cardholders have advance payment cards

Managerial Implications: Details The firm should be able to learn details of purchased goods or services like Type Color Size etc.. For that Fortis should coordinate with all of shopping places that Visa / Mastercard is accepted.

The firm should be able to learn details of purchased goods or services like

Type

Color

Size etc..

For that Fortis should coordinate with all of shopping places that Visa / Mastercard is accepted.

Turkcell / Telsim / Avea Know the place of the customer Send just right promotion campaign announcements ATTENTION! Privacy! Gima / Migros / Carrefour... For details of purchased items. Managerial Implications: Strong cooperatives

Turkcell / Telsim / Avea

Know the place of the customer

Send just right promotion campaign announcements

ATTENTION! Privacy!

Gima / Migros / Carrefour...

For details of purchased items.

Questions?

Thanks.. Cross Selling Opportunities In Banking Industry Fortis Bank Elif Hande Gürsoy Hande Arpalıgil Özge Şahlanan Seher Sinem Aşkın Tutku Rüya Özmen