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Bank study 2010 brazil summary


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Bank study 2010 brazil summary

  1. 1. This Study and Customer Value• This is a summary of a Customer Value Study of banks in Brazil: It tells you which banks are better and how share of wallet, cross selling and reducing migration can be effective• We help companies with Value Creation and improving Customer Value, market share, loyalty, share of wallet, and increased profitability• Customer Value studies start with Value trees. Value is a juxtaposition of costs and benefits
  2. 2. Differential CVA Solutions• Measure and diagnose the Perceived Value in comparison with market competitors. The metrics can be used for building Action Plans that will impact market share and profitability – where CVA Solutions can facilitate this changing process.• A “Value Tree” is developed based on inputs from interviews with end users and stakeholders. From the Value Tree (Perceived Cost-Benefit Tree), a list of major attributes is generated in order of impact, where attributes with competitive advantage is can be used for “communication” and attributes that need to be improved can be used for action plans.• With a list of Perceived Attributes to improve, CVA experts with client’s executives will study internal metrics that best correlate with the attributes and set objectives for improvement, timing and leaders. This is the baseline for the Action Plan phase. • The increase of Perceived Value generates improvement in market share and profitability, according to our experience with more than 3.800 cases in the last3 14 years.
  3. 3. Regional Offices4
  4. 4. ClientsBanking/Finance/Insurance Consumer Goods Entertainment/Services PetroleumANZ Bank Colgate Palmolive Disney British PetroleumBradesco Heineken Exhibit Group/Giltspur Castro OilChampion Mortgage Jequiti Hotéis Atlantica PharmaceuticalsChase Manhattan Bank Kraft Foods Sky City Casino RocheChubb Seguros Whirlpool UOL TelecommunicationsGE Capital Electronics / Hi-Tech Forestry & Paper Products Telecommunications Aliant TelecomHSBC Allied Signal International Paper Bell CanadaItaú-Unibanco Celestica Mead Corporation British TelecomLiberty Datex Ohmeda Rock-Tenn ClaroMapfre Hewlett Packard Health Industry Fiji TelecomMastercard Itautec 3M Lucent TechnologiesMutual of Omaha Legend Amil New CallPorto Seguro Nokia Cross Country Travel Corps Nortel NetworksSantander Philips Dasa OiStandard and Poors Texas Instruments Fleury Medicina e Saúde Telecom New ZealandState Farm Insurance Energy/Power Golden Cross Telstra AustraliaSulAmérica Seguros Comgás Laboratório Sérgio Franco Vodafone New ZealandSuncorp Nicor Energy Medial Tata TelecomVisa Peco Energy NotreDame–IntermédicaZurich Seguros Suburban Propane OdontoPrevBuilding Supplies We Energies OmintFletcher Challenge Education Porto SeguroCars and Trucks Centro Educacional Integrado QualicorpDaimler Chrysler HSM SulAmérica Saúde 5
  5. 5. ValueValue is the relation cost-benefit perceived in the acquisition and /or usage of a product and / or service.COST BENEFITMoney ProductTime ServiceEnergy Emotional BenefitsCost of opportunity Brand… …6
  6. 6. Objective: sustainable and profitable growth. How? New clients •Attract New Customers •Brand Attractiveness = Net share less rejection Attraction •Increased attraction via communication with the marke •Diminish rejection providing good experience for current clients (current value perceived by customers) •Increase business with existing customers •Perceived value reflects the experience of current customers •Perceived value is the cost-benefit of your company compared the cost-benefit of their competitorsBASE OF •Tree Value diagnose what are the critical attributesCLIENTES Current Clients to implement improvements •Loss of customers. Why? •Perceived Value worse than competitors / rejection of former clien •Net attractiveness of competitors / promise of competitors EX-Clients7
  7. 7. CVA Ratios DEFINITION VALUE COST BENEFIT DESCRIPTION Products and services are perceived Bellow average < .98 < .98 < .98 as being inferior to competitors Products and services are perceived in Parity (average) .98 - 1.02 .98 - 1.02 .98 - 1.02 parity with competition Products and services are perceived Above average 1.03 - 1.10 1.03 - 1.08 1.03 - 1.15 as being superior to competitors Products and services are perceived as World Class > 1.10 > 1.08 > 1.15 offering exceptional superiority vs competition8
  8. 8. Impact Weight: Declared X Econometric IMPACTO Declared DECLARADO Impact + Non Attribute = differentiator High Attribute Importance IMPACTO Econometric Impact ECONOMÉTRICO + Attribute = Differentiator Low Attribute Importance9
  9. 9. Prioritization – VPI e VPC High Alta VPI VPI VPC VPC Highprioridade de melhoria Alta priority for improvementHigh priority comunicação Alta prioridade de for communication Importância RelativaRelativeImportance Low Baixa 1,00 Low Baixo High Alto Performance (CVA) Desempenho (CVA)10
  10. 10. VPC and VPIVPC – Value Priority for Communication: Prioritize theattributes which good performance most leverage theCommunication effort = attributes with high impact weight andhigh CVAVPI – Value Priority for Improvement: Prioritize theattributes which improvement most leverage the PerceivedValue = attributes with high impact weight and low CVA11
  11. 11. Why we should increase CVA? Increase of CVA leads to increase in MARKET SHARE* CVA (-4 Months) MARKET SHARE Year 1 Year 2 Year 3 *Based on the study PIMS (PROFIT IMPACT OF MARKET STRATEGY) RESEARCH PROGRAM prepared by the STRATEGIC PLANNING INSTITUTE (CAMBRIDGE, MASSACHUSETTS, USA)12
  12. 12. Why we should increase CVA?Increase of CVA leads to increase of ROI* (return on investment) ROI % Low Average High CVA *Based on the study PIMS (PROFIT IMPACT OF MARKET STRATEGY) RESEARCH PROGRAM prepared by the STRATEGIC PLANNING INSTITUTE (CAMBRIDGE, MASSACHUSETTS, USA)13
  13. 13. Value for Industry Econometrics Impacts Value Benefits Costs Industry Score Impact % Impact % 1 Appliances 9,28 59 41 2 Technical Service 8,68 53 47 3 Commercial Relationship with Retailers 8,48 48 52 4 Clinicas Analysis Labs (usuer) 8,48 35 65 5 Heavy Vehicles (Trucks) 8,38 48 52 6 Cosmetics - direct sales 8,22 40 60 7 Televisions 2010 8,21 40 60 8 Beer - (the consumer at the bar) 8,15 62 38 9 Computers 2010 8,04 39 61 10 Hotels 8,03 43 57 11 Business Magazine 7,98 42 58 12 Mobiles Phones 2010 7,75 45 55 13 Insurances (inurance brokers) 7,65 40 60 14 Auto executives 7,62 50 50 15 Banks Premium 2010 7,39 34 66 16 Auto Insurance 2010 (users) 7,39 24 76 17 Supermarkets 7,30 47 53 18 Credit Card 2010 7,21 46 54 19 Oral hygiene products - (Dentists ) 6,98 68 32 20 Retail Bank 2010 STD 6,73 31 69 21 Mobile operators 2010 6,65 40 60 22 Dentals Plans (users) 6,56 40 60 23 Health Plans (users) 6,19 40 60 Source: Database CVA Solutions14
  14. 14. Yellow means equal SOW: Share of WalletRed means worseGreen means better
  15. 15. Total Customer Value Management Benefits to YOU
  16. 16. Market Place1. Measuring Customer Value Added, the ratio of the value you add to your Customers, versus the value your competitors add to their Customers2. Why people buy from you and not from your competitors, and vice- versa, Predicting loyalty, market share, and improving business results. Increase market share, and reducing pressure on price3. Total marketplace assessment: Voice of the Customer and Voice of the Competitor4. Increased referrals, word of mouth sales, sales per salesman (as much as 30%), less pressure on pricing, pricing from a Customer Value perspective5. Reduction of complaints (by 70% at one clients’) in the quarter following the TOTAL CVM intervention. Customer satisfaction scores have improved by over 10%6. Changing the rules of the marketplace, and making price less of an issue7. Converting call centres to Action Centres8. Using social media, social marketing and digital media for improving value
  17. 17. Employees1. Measure Voice of Employee, increase employee self-esteem and awareness. Using value to reduce employee and Customer churn. Build individual promises to ensure Customer’s Bill of Rights2. Equate improvements in employee value, business processes, and customer products and services to increased customer loyalty and bottom line business benefit.3. Helping CxO’s align better with Customers. For example: o For CFO’s, measuring Customer Capital, Customer Assets, correlation between value and share price, pricing techniques based on the Customer and perceived Value, segmenting Customers from shareholder value viewpoint, reporting CVA scores with financial data, looking at financial systems and billing/credit from convenience of Customer etc. o Or for HRD heads, assessing Customer needs, and providing education based on this, hiring based on Customer value, measuring and adding employee value added, correlating employee value to shareholder and Customer value, reducing employee churn etc.4. Providing education to all levels of employees including touch points, and certifying them for their ability to handle and work with Customers5. Increase of teamwork and employee happiness, building of employee self esteem, awareness. Building a pro-active Customer focused organisation6. Putting a Customer Performance Management System into place.7. Using Customer Value metrics for rewards and recognition. Often Total CVM forms a major part of the Balanced Score Card• End result is employee engagement and commitment
  18. 18. Within the Company1. Improving service quality2. Better teamwork and internal Customer focus3. Building Customer centric circles, Customer conduits.and the Circle of promises among employees to deliver the Customer’s Bill of Rights. This also builds a continuous Customer Improvement Program4. Understanding competitive strategies and pre-empting competitive moves by competition. Building Customer strategies to drive business strategies5. Using Customer value to decide on product and technology offerings Using Customer Value for valuation in M&A6. Understanding the deterioration in touching and Customer Value in the delivery chain Improved Customer focus and Customer Value by channel partners, leading to an increase of value in the distribution chain.7. Using Customer Value for product decisions
  19. 19. Shareholder Value1. Increasing profits and shareholder Value2. Correlating Employee Value to CustomerValue to Shareholder Value
  20. 20. Gautam Mahajan phone: + 91 98100