Increasing Customer Wallet Share


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Increasing Customer Wallet Share

  1. 1. Increasing Customer Wallet Share Dushyant Pandya, VP, Product Strategy Track: Financial Services
  2. 2. Safe Harbor Statement <ul><li>“ Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.  All statements other than statements of historical fact could be deemed forward-looking, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services. </li></ul><ul><li>The risks and uncertainties referred to above include - but are not limited to - risks associated with the integration of Sendia Corporation’s technology, operations, infrastructure and personnel with ours; unexpected costs or delays incurred in integrating Sendia with, which could adversely affect our operating results and rate of growth; any unknown errors or limitations in the Sendia technology; any third party intellectual property claims arising from the Sendia technology; customer and partner acceptance and deployment of the AppExchange and AppExchange Mobile platforms; interruptions or delays in our service or our Web hosting; our new business model; breach of our security measures; possible fluctuations in our operating results and rate of growth; the emerging market in which we operate; our relatively limited operating history; our ability to hire, retain and motivate our employees and manage our growth; competition; our ability to continue to release and gain customer acceptance of new and improved versions of our CRM service; unanticipated changes in our effective tax rate; fluctuations in the number of shares outstanding; the price of such shares; foreign currency exchange rates and interest rates. </li></ul><ul><li>Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K for the fiscal year ended January 31, 2006. These documents are available on the SEC Filings section of the Investor Information section of our website at . </li></ul><ul><li>Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all.  Customers who purchase our services should make purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. </li></ul>
  3. 3. Agenda <ul><li> focus in Banking </li></ul><ul><li>Commercial Banking SunTrust Bank </li></ul><ul><li>Consumer Banking Wells Fargo Bank </li></ul><ul><li>Q&A </li></ul>
  4. 4. Financial Services Firms Are Choosing On-Demand
  5. 5. Financial Services Industry Trends Trends Competitive Pressure Rapid Change Approach Focus on Organic growth Simplicity for customers Goals
  6. 6. Increasing Wallet Share to Increase Profitability The average cost for acquiring a new customer: $3,500 US Source: American Bankers Association Source: Deutsche Bank Research 2005 Attract New Customers and Grow Successful Relationships Number of services used Margin Index Years Contribution Margin Customer Tenure The Importance of Customer Retention
  7. 7. Challenges to Growing Revenue Ineffective Selling Weak Lead Generation <ul><li>No Systematic Sales Process </li></ul><ul><li>Can’t Integrate Process to CRM </li></ul><ul><li>Inconsistent Performance of “B” Reps </li></ul><ul><li>Poor Lead Quality & Conversion </li></ul><ul><li>Marketing-Sales Gap </li></ul><ul><li>Weak Sales Pipeline </li></ul>Common Sales Problems Poor Visibility <ul><li>Missed Revenue Goals </li></ul><ul><li>Inaccurate Sales Forecasts </li></ul><ul><li>Lack Predictability </li></ul>Poor Productivity <ul><li>Wasted Time </li></ul><ul><ul><li>Reporting </li></ul></ul><ul><ul><li>Finding Information </li></ul></ul><ul><ul><li>Managing Change </li></ul></ul><ul><li>Weak Sales Pipeline </li></ul><ul><li>Not Enough Time with Customers </li></ul>
  8. 8. Rick Davis Senior Vice President and Manager, Commercial Information Services [email_address]
  9. 9. SunTrust Bank Profile <ul><li>Seventh Largest Bank in US </li></ul><ul><li>1700 branches </li></ul><ul><li>$179 billion in assets, $122 billion in deposit </li></ul><ul><li>Serves 5 million households </li></ul><ul><li>550,000 business clients </li></ul>INDUSTRY: Banking EMPLOYEES: 35,000 GEOGRAPHY: Southeast US PRODUCT(S) USED: SFA, Service & Support # USERS: 2700
  10. 10. Key Strategy and Business Objectives <ul><li>Strategy </li></ul><ul><ul><li>Big bank capabilities delivered through local relationship managers </li></ul></ul><ul><ul><li>Deliver products through client’s financial life-cycle </li></ul></ul><ul><ul><li>Local responsiveness </li></ul></ul><ul><ul><li>Execution: Relationship Management Model </li></ul></ul><ul><li>Business Objectives </li></ul><ul><ul><li>Maximize Wallet Share </li></ul></ul><ul><ul><li>Faster Customer Acquisition </li></ul></ul>
  11. 11. Key Challenges <ul><li>Business Challenge </li></ul><ul><ul><li>Lack of focus on high value activities </li></ul></ul><ul><ul><li>Lack of sales visibility </li></ul></ul><ul><ul><li>Inconsistent relationship planning </li></ul></ul><ul><ul><li>Inconsistent cross-LOB partnership </li></ul></ul><ul><li>Technology Challenge </li></ul><ul><ul><li>Lack of platform infrastructure and single-view applications </li></ul></ul><ul><ul><li>Poor support of business processes and best-practices </li></ul></ul><ul><ul><li>Rising IT costs and ownership issues </li></ul></ul><ul><ul><li>22 back-end systems </li></ul></ul><ul><li>Poor customer service </li></ul><ul><li>Inefficient use of selling time </li></ul><ul><li>Lost cross-sell opportunities </li></ul><ul><li>Poor execution resulting from lack of detail visibility </li></ul>
  12. 12. Solution: Drive Consistent Sales Process <ul><li>Sales Teams </li></ul><ul><li>1 2 3 Call Planner </li></ul><ul><li>Senior Management on Key Accounts </li></ul><ul><li>How is Salesforce used? </li></ul><ul><ul><li>Streamlined call, pipeline and forecast management across product lines </li></ul></ul><ul><ul><li>Comprehensive and targeted campaigns </li></ul></ul><ul><ul><li>Reduced ramp-up time for new RMs </li></ul></ul><ul><ul><li>66% reduction in meeting time </li></ul></ul>SunTrust RM productivity is in top two quintiles in the industry
  13. 13. Solution: Relationship Planning <ul><li>Client Understanding </li></ul><ul><li>Relationship Plans </li></ul><ul><li>How is Salesforce used? </li></ul><ul><ul><li>Repository for relationship plans and annual updates </li></ul></ul><ul><ul><li>Predict profitability of activities and focus on high-value activities </li></ul></ul><ul><ul><li>Track and manage client activity relative to revenue generated </li></ul></ul><ul><ul><li>Effectively leverage best-in-class sales force to foster full relationship management </li></ul></ul>
  14. 14. Solution: Cross LOB Partnership: 360 Degrees <ul><li>Referral tracking </li></ul><ul><ul><li>Capital Market </li></ul></ul><ul><ul><li>Treasury Management </li></ul></ul><ul><ul><li>Private Wealth Management for business owners and key executives </li></ul></ul><ul><ul><li>SunTrust @ Work </li></ul></ul><ul><li>Different profiles for different LOBs </li></ul><ul><li>How is Salesforce used? </li></ul><ul><ul><li>Single org, open sharing model </li></ul></ul><ul><ul><li>Using Opportunities to track Referrals </li></ul></ul><ul><ul><li>Opportunity profile can help RM gauge opportunities for cross LOB referral </li></ul></ul>Relationship Manager incentives are directly tied to new business production, portfolio profitability and cross-LOB partnership
  15. 15. Improvement in Lead Relationships <ul><li>Sales force helped by: </li></ul><ul><ul><li>Better client information </li></ul></ul><ul><ul><li>Improved follow-up and action steps </li></ul></ul><ul><ul><li>Strong pipeline management </li></ul></ul>
  16. 16. Result: Increased Wallet Share <ul><li>Increased Fees </li></ul><ul><ul><li>Capital Markets: 67% increase – $ 61.9 million </li></ul></ul><ul><ul><li>Treasury management fees: 29% YOY increase </li></ul></ul><ul><li>Referral Improvement </li></ul><ul><ul><li>Loans: 5% </li></ul></ul><ul><ul><li>Personal Wealth Management: 31% </li></ul></ul><ul><ul><li>Aspiration: Improve wallet share from 28% to 40% over next 3 years </li></ul></ul>
  17. 17. Key Success Factors <ul><li>Management buy-in </li></ul><ul><li>Aligned with strategic objectives </li></ul><ul><li>Ability to support cross-LOB business processes and best-practices </li></ul><ul><li>Customization and configuration capabilities towards rapid deployment </li></ul><ul><li>Ease of use drives high adoption rate </li></ul>
  18. 18. Basil Fedynyshyn VP, Consumer Credit Group
  19. 19. Wells Fargo Bank Consumer Credit Group Profile <ul><li>One of the largest and fastest growing providers of home equity, personal credit and student loan accounts </li></ul><ul><li>Combined portfolio of $95 billion </li></ul><ul><li>Serving more than 4 million customer households </li></ul><ul><li>Number one prime home equity provider within Wells Fargo banking states </li></ul>INDUSTRY: Banking EMPLOYEES: 153,500 GEOGRAPHY: US PRODUCT(S) USED: SFA, Service & Support # USERS: 335
  20. 20. Key Strategy <ul><li>More effectively leverage online channel to grow business </li></ul><ul><li>Integrated sales process between online and telesales </li></ul><ul><li>Provide exceptional customer experience </li></ul><ul><ul><li>Know your customer </li></ul></ul><ul><ul><li>Timely response </li></ul></ul><ul><ul><li>Managed expectations </li></ul></ul><ul><li>Improve sales performance </li></ul><ul><ul><li>Volume of leads </li></ul></ul><ul><ul><li>Right party contacts </li></ul></ul><ul><ul><li>Book loans to applications </li></ul></ul><ul><ul><li>Sales Agents productivity </li></ul></ul>
  21. 21. Key Challenges <ul><li>Business Challenge </li></ul><ul><ul><li>Increasing competition in a consolidating market </li></ul></ul><ul><ul><li>Scaling processes to effective and efficiently support rapidly growing business </li></ul></ul><ul><ul><li>Speed-to-Market is critical to retain and grow market share </li></ul></ul><ul><ul><li>Leveraging interactions into sales opportunities </li></ul></ul><ul><ul><li>Lack of visibility into sales and retention metrics </li></ul></ul><ul><li>Technology Challenge </li></ul><ul><ul><li>Lack of automated tools </li></ul></ul><ul><ul><li>Speed to deployment </li></ul></ul><ul><ul><li>Flexibility to adapt to a changing environment </li></ul></ul><ul><ul><li>Security & privacy </li></ul></ul><ul><li>Missing opportunity to convert online interactions into sales opportunities </li></ul><ul><li>Timely, cost effective use of aggregators </li></ul><ul><li>Automated sales tools </li></ul><ul><li>Comprehensive view of sales pipeline </li></ul><ul><li>Effective sales agent follow-up </li></ul>
  22. 22. The Solution <ul><li>Incrementally deploy Salesforce to meet critical needs while proving viability and value </li></ul><ul><ul><li>Piloted and then deployed Leads and Task to support inbound and outbound sales efforts </li></ul></ul><ul><ul><li>Implemented web to lead for more timely response </li></ul></ul><ul><ul><li>Built automated skills-based lead assignment </li></ul></ul><ul><ul><li>Interfaced with Genesys and Avaya with CTI </li></ul></ul><ul><ul><li>Leveraging Opportunities to manage ales sales pipeline </li></ul></ul><ul><ul><li>Piloting with other Lines of Businesses </li></ul></ul><ul><ul><li>Leveraging Campaigns to manage sales programs </li></ul></ul><ul><ul><li>Integrating legacy systems with API and web services </li></ul></ul><ul><li>Establish formal administration and support </li></ul><ul><ul><li>Change management environment </li></ul></ul><ul><ul><li>Architecture framework (i.e. object model, integration methods, risk controls) </li></ul></ul><ul><ul><li>Implementation guidelines (i.e. UI, naming) </li></ul></ul><ul><li>Products implemented : SFA, SSS </li></ul><ul><li># Users : 300 going to 500 </li></ul><ul><li>Training : Developed in house </li></ul><ul><li>Business Units : Consumer Credit Group: Direct to Consumer and Customer Management with pilots for Mortgage and Financial </li></ul>DEPLOYMENT DETAILS
  23. 23. Lead & Campaign Management & 3 rd parties sites WF Marketing Auto Dialer Auto Assignment Inbound ( Direct, Internal Transfer ) & Outbound <ul><li>Online leads send email and contacted in < 5 minutes </li></ul><ul><li>Optimized delivery of leads to agents through multiple methods </li></ul><ul><li>Real time tracking of lead source volumes and results </li></ul>Introduction
  24. 24. Contact Management Task Reminders CTI Dialing & Auto Noting <ul><li>Improved customer experience “ Know the customer” </li></ul><ul><li>Consistent execution of contact strategy </li></ul><ul><li>Enhanced agent productivity </li></ul><ul><li>Real time tracking of agent performance </li></ul>Follow-up Communications Customer & Account Systems
  25. 25. Pipeline Management Event Monitor / Task Creator <ul><li>Managed customer expectation </li></ul><ul><li>Reduced loan processing time </li></ul><ul><li>Real time monitoring and managing of sales pipeline </li></ul>Task Monitoring & Escalation Loan Processing System
  26. 26. Results <ul><li>Grew online leads 5 x </li></ul><ul><li>Increased RPC rate 300% </li></ul><ul><li>Improved sales agent productivity 10 to 15% </li></ul>
  27. 27. Key Success Factors <ul><li>Clear vision that aligned business strategy, capabilities model and technology roadmap </li></ul><ul><li>Strong partnerships with and Deloitte Consulting </li></ul><ul><li>Engaging users in interactive development effort </li></ul><ul><li>Rapid deployment without dependency on IT </li></ul><ul><li>Incremental investment with small up front commitment </li></ul><ul><li>Flexibility to quickly adapt to key learning and changing environment </li></ul><ul><li>Ability to scale and integrate with other systems </li></ul>
  28. 28. Summary <ul><li>Increasing Customer Wallet Share Requires </li></ul><ul><ul><li>Ability to support cross-LOB business processes </li></ul></ul><ul><ul><li>Ease of use and incentives to drive participation </li></ul></ul><ul><ul><li>Customization and configuration that implements firm specific best practices </li></ul></ul><ul><ul><li>Rapid deployment to bring more LOB for increasing return </li></ul></ul>
  29. 29. Dushyant Pandya VP, Product Strategy Rick Davis Senior Vice President and Manager Basil Fedynyshyn Consumer Credit Group QUESTION & ANSWER SESSION
  30. 30. Don’t miss … <ul><li>Financial Services Expo </li></ul><ul><li>Open Throughout the Conference </li></ul><ul><ul><li>Meet the Experts </li></ul></ul><ul><ul><li>Hands-On Demos </li></ul></ul><ul><ul><li>Visit our Partners </li></ul></ul><ul><li>Birds of A Feather </li></ul><ul><li>Lunchtime 11:30 – 2:00pm, Tuesday </li></ul><ul><li>Lunch Area behind Financial Services Expo </li></ul><ul><ul><ul><li>Network with Peers </li></ul></ul></ul><ul><ul><ul><li>Discuss Industry News </li></ul></ul></ul><ul><ul><ul><li>Lunch and Learn </li></ul></ul></ul><ul><li>Meet the Financial Services Product Managers </li></ul><ul><li>Tuesday, 3:45 – 4:45, Meeting Room B, 2 nd Floor </li></ul><ul><ul><li>Ask questions </li></ul></ul><ul><ul><li>Provide feedback </li></ul></ul><ul><ul><li>Learn about our product & strategy. </li></ul></ul>
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