5. Porter’s Five Forces
Threat of New Entrant
•
•
•
Supplier Power
High capital
Anti-trust laws
LOW
Financial regulations
Rivalry
• Subjected to
LOW
regulations
• End-consumers
HIGH
• Little differentiation
• Strong competitors
Threat of Substitutes
•
Technological substitutes
MODERATE
Introduction
Buyers Power
•
•
Low switching costs
Many available
MODERATE
options
6. Porter’s Five Forces
Threat of New Entrant
High capital
Anti-trust laws
Financial regulations
•
•
•
Competition
Supplier Power
• Subjected to
regulations
• End-consumers
•
•
Little differentiation
Strong competitors
Threat of Substitutes
•
Introduction
Technological substitutes
Buyers Power
•
•
Low switching costs
Many available
options
7. Porter’s Five Forces
Threat of New Entrant
•
•
•
High capital
Anti-trust laws
Financial regulations
Overall: Competitive industry
Pertinent to have effective
CRM
Competition
Supplier Power
• Subjected to
regulations
• End-consumers
•
•
Little differentiation
Strong competitors
Threat of Substitutes
•
Introduction
Technological substitutes
Buyers Power
•
•
Low switching costs
Many available
options
10. Primary Research Overview
Focus Group
Survey
11 individuals
Convenience sampling
Between 48 to 60 years old
70 data points
Objectives: Determine potential
customer satisfaction drivers,
learn consumers’ vocabulary
Respondents
11
28
Observation Study
Maybank
DBS
UOB
2 hours at Maybank’s North Bridge
Road branch
Design Methodology
31
10
13. Perceptual Mapping
Key findings
Traditional banks
Traditional banks:
Value, family, safe, establis
hed
Yuppie banks:
Young, exciting, profession
al
Yuppie banks
Survey Findings
Maybank: Doesn’t fall in
the groups above;
Absence of strong
customer perception
13
14. Model and Model Fit
0.415
0.039
0.328
0.052
Legend:
Significance level below 0.05 is
indicated with *.
Significance level below 0.01 is
indicated with **.
0.308
Significance level below 0.001 is
indicated with ***.
Survey Findings
Relatively
good model fit
Insights likely
to be insightful
15. Identifying the “Hot Buttons”
Ranking Variable
Sig. value
1
Value***
0.000026
2
Efficiency*** 0.000066
3
Service
quality***
Survey Findings
0.000161
16. Maybank’s Perceived Performance
Attributes
Average Maybank DBS UOB
Value
4.33
4.36
4.26 4.45
Efficiency
4.24
4.08
4.23 4.63
Service
4.77
4.04
5.30 5.00
Accessibility 4.84
3.76
5.63 5.18
Emotional
3.24
4.40 4.54
quality
3.98
value
Survey Findings
16
17. Maybank’s Perceived Performance
Significant drivers
Maybank: Performs well for perceived value
Maybank: Service Quality and Efficiency are
potential roots of dissatisfaction
Non-significant drivers
Maybank: All below industry
average
Survey Findings
17
20. Overview of Recommendations
Objectives
Improve Maybank’s performance in Service and Efficiency
Improve customer satisfaction and customer retention
Overview of Recommendations
Human capital
management: Staff
selection, staff
training, staff
empowerment
Consistency of tangibles
Recommendations
Improvement of
awareness of other
channels
Retail Outlet Improvements
21. Human Capital Management
Staff Selection
Staff Training
Increase product knowledge
and ability to react to
unpredictable situations
Personality test
Specific customer-centric
characteristics
Example: Role playing
Technique/ Adjusting SOP
Enhance customer service
oriented culture
Improve service quality and
efficiency
Staff Empowerment
Monetary empowerment
Recognition of
service excellence
Recommendations
21
22. Consistency of Tangibles
Uniforms
Convey professional image
and service quality
Uniforms for front-line service
staff
Improve service quality and
reputation
Recommendations
Consistency Across
Outlets
Furniture, wall
decoration, floor
layout, procedures
Consistent brand image
to resonate in people’s
minds
22
23. Awareness of other Channels
Other channels
Better advertise mobile
application, website with more
detailed steps as to where they
can obtain information
Example: Place physical
signage at their retail outlets
Recommendations
Results
Reduce the waiting time
due to reduced need to
visit the bank
Improve efficiency
increases customer
satisfaction
23
25. Impact of Change
Current
Net
Promoter Continue
to Weighted
Segment
Purchase
Average
Promoter
16%
77.50%
0.12400
Passive
32%
71.11%
0.22756
Detractors
48%
46.67%
0.22400
Total (weighted average)
NPS
0.57556
-32%
Projected
Net
Promoter Continue
to Weighted
Segment
Purchase
Average
Promoter
17%
77.50%
0.13175
Passive
32%
71.11%
0.22756
Detractors
47%
46.67%
0.21933
Total (weighted average)
NPS
Increasing 1%
customers from
passive to
promoter category
and 1% from
detractor to
passive category
brings about an
increased
contribution of
0.38%
0.57864
-30%
Recommendations
25
26. Budget
Item Description
Cost (S$)
Retail Improvements
$230,000
Maybank Uniform
$112,000
Training
$20,000
Staff Rewards System
$35,000
Maintenance
$2,500
Total
$399,500
Recommendations
27. Customer Portfolio Management
Customer Satisfaction
80% of Satisfied Customers are
61years and above
100% of customers aged 26 to
30 are only moderately
satisfied
60% of the above customers
have no intention to revisit
Recommendations
It is important for
Maybank to
convert younger
customers
Aggressive
Branding and
cross-selling to
younger customers
27
Market Value Forecast CAGR used for this slide.The beer market consists of retail sales of ales, stouts & bitters, low/no alcohol beers, premium lager, specialty beers and standard lager. The spirits market consists of the sale of brandy, liqueurs, rum, specialty spirits, vodka, whisky and other (Tequila & Mezcal and Gin & Genever).The wine market consists of retail sale of champagne, fortified wine, sparkling wine and still wine.
customer profilescustomer activity
Human resource managementStaff trainingStaff selectionConsistency of intangiblesImprovement of awareness of other distribution channel
Customer service training - full-day/half-day to increase product knowledge and ability to react to unpredictable situations Example: Role playing Technique/ Adjustments in Standard Operational Procedures
Customer service training - full-day/half-day to increase product knowledge and ability to react to unpredictable situations Example: Role playing Technique/ Adjustments in Standard Operational Procedures
Thank you Deirdre. The next recommendation is to increase Maybank customers’ awareness of alternative channels to obtain information. Currently, maybank has self-help channels such as its website and mobile app. However, most customers are unaware that they are able to obtain quick answer to simpler enquiries through these channels. Hence, making customers aware, it would help divert human traffic from their retail branches. One way they can do so is through placing a physical signage at their retail front. Hence, this would reduce waiting time and improve efficiency.
Our last key recommendation is to improve the “stage of the performance”, which is the retail outlet. Firstly, Maybank can have a dedicated staff situated near the entrance to greet customers. This staff will be known as the service ambassador and he or she will understand customer’s needs and direct them to 2 different queues based on their needs. If it is a specific enquiry, the customer will be directed to a financial consultant who will offer his help at the side counters. For general enquiries, customers will scan their IC and verify their particulars. After that, they will receive an SMS with their queue no. and expected waiting time. They then can choose if they want to wait in the branch or return later. While waiting, they will be offered beverage options. One of it could be a cup of coffee from our brand new coffee machine. They are then able to enjoy some retailtainment in the form of TV programmes on our new 32” LED TV. Examples of some programmes include CNA news and their CSR efforts. When there are only 3 customers ahead, customer will receive a 2nd SMS informing them they should return to the branch as it will soon be their turn. As a result, perceived waiting time is reduced and efficiency and emotional value is increased.
So, by implementing the above recommendations, we expect an increase in 1% customers from passive to promoters and also 1% customers from detractors to the passive category, which would result in an increased contribution of 0.38%.
For our budget, this is our estimated cost breakdown for our recommendations. We will spend a total of 399 thousand and 500 dollars. Next, ZY will bring you through our mid-term strategy.