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To continue strengthening its branding and goodwill among customers, CIMB must: 1) Improve its credit card offerings to stay competitive by expanding cash rebates to online spending without minimum transaction amounts and maintaining high rebate levels. 2) Leverage corporate social responsibility initiatives to increase brand awareness, drive customer acquisition, and build loyalty by sponsoring events that appeal to target audiences and give back to the community. 3) Enhance its digital capabilities as high digital usage correlates with customer loyalty.
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EIP Presentation
- 1. What must CIMB do to continue to strengthen its branding and goodwill among customers? Colin Chng Zhang Zhi Ming Sean Koh 22 July 2015 EIP Presentation
- 2. 1 Situational Analysis Strategy 1 Strategy 2 Conclusion • Intangible • Takes time to build • Customer perceptions are becoming increasingly important for long-term success Branding and Goodwill It has everything to do with reputation
- 3. 2 Situational Analysis Strategy 1 Strategy 2 Conclusion Banking Brands The most valuable banking brands in Singapore (2015) 2015 Global Rank Brand Value (USD$ Millions) HSBC 3 27,280 Citi 5 26,210 BOC 9 20,392 BNP Paribas 11 14,939 BTMU 12 14,511 Commonwealth Bank 29 7,520 ANZ 38 6,664 SBI 40 6,563 Stan Chart 48 5,162 DBS 56 4,416 OCBC 74 2,787 ICICI 80 2,527 UOB 84 2,404 Maybank 91 2,243 CIMB 101 1,964 Bangkok Bank 184 797 BEA 185 794 RHB 211 619 Source: Brand Finance Asia Pacific
- 4. 3 Situational Analysis Strategy 1 Strategy 2 Conclusion Banking Brands ASEAN’s most valuable banking brands of 2015 ASEAN Rank 2015 Global Rank Brand Domicle 1 56 DBS Singapore 2 74 OCBC Singapore 3 84 UOB Singapore 4 91 Maybank Malaysia 5 101 CIMB Malaysia 6 107 Bank Mandiri Indonesia 7 108 Kasikornbank Thailand 8 133 Siam Commercial Bank Thailand 9 134 Bank Rakyat Indonesia Indonesia 10 147 BCA Indonesia 11 150 Public Bank Malaysia 12 160 Bank Negara Indonesia Indonesia 13 172 Krung Thai Bank Thailand 14 184 Bangkok Bank Thailand 15 193 Bank of Ayudhya Thailand 16 207 BDO Philippines 17 211 RHB Bank Malaysia 18 212 Metrobank Philippines 19 228 Bank of the Philippines Philippines 20 254 Bank Danamon Indonesia Source: Brand Finance Asia Pacific
- 5. 4 Situational Analysis Strategy 1 Strategy 2 Conclusion Consumer Credit Cards Attractive cards with no annual fee and cash rebates with no minimum spending The absence of annual fees and minimum spending for cash rebates was the main draw for consumers who wanted a credit card Platinum MasterCard Visa Signature World MasterCard No annual fee No annual fee No annual fee 0.5% cash rebate on local spending, 1% on overseas – no minimum spending 0.5% cash rebate on local spending, 1% on overseas – no minimum spending 1% cash rebate on local spending, 2% on overseas – no minimum spending Bonus 3.3% cash rebate on limited items Bonus 3.3% cash rebate on specific items + free airport limo >$120k annual income card,
- 6. 5 Situational Analysis Strategy 1 Strategy 2 Conclusion Changing Landscape of Consumer Banking Cash rebates are the simplest, most favourable credit card benefit Having attractive and simple cash rebates is a key strategy for credit card customer acquisition 6% online transactions Min $500 per month Capped at $60 3.33% rebate on all spending Min $300 per month for 3 months Tiered rebates $30 (for $300), $100 (for $1000) 5% on the selected segment per month No cap No minimum spend Most Popular Credit Cards Source: Cheaponana.com, Moneysmart.sg Attractive cash rebate levels Simple T&Cs to reduce barriers to spending Higher rebate caps to encourage more usage
- 7. 6 Situational Analysis Strategy 1 Strategy 2 Conclusion Changing Landscape of Consumer Banking How CIMB’s offerings compare Min $500 per month, min $50 per transaction 3.8% on dining Capped at $50 CIMB needs to remain competitive to continue to attract, retain and value-add to its customers Attractive cash rebate levels Simple T&Cs to reduce barriers to spending Higher rebate caps to encourage more usage 5% on the selected segment per month No cap No minimum spend
- 8. 7 Situational Analysis Strategy 1 Strategy 2 Conclusion Improved Credit Card Offerings Staying ahead of the competition Visa Signature No annual fee 0.5% cash rebate on local spending, 1% on overseas – no minimum spending Bonus 3.3% cash rebate on specific items + free airport limo Attractive Rebates Ease of Use Focusing on providing rebates and promoting ease of use will allow CIMB’s credit card business presence in Singapore to be strengthened Expanding cash rebate selection to online spending – second largest spending category Retain 3.8% rebate level Remove minimum spending per transaction – capture maximum volume Maintain $500 minimum spending a month
- 9. 8 Situational Analysis Strategy 1 Strategy 2 Conclusion Why Digital? High digital usage correlates closely with customers’ loyalty
- 10. 9 Situational Analysis Strategy 1 Strategy 2 Conclusion Corporate Social Responsibility Devoting time and efforts to a social cause Maybank Family fund • Support sole breadwinners of low-income families • Singapore Creative CSR Awards 2015, Community Building Category DBS Foundation • SGD 50 million fund • To address the region’s evolving social needs through championing social entrepreneurship. • Singapore Creative CSR Awards 2015, Social Enterprise Category
- 11. 10 Situational Analysis Strategy 1 Strategy 2 Conclusion Corporate Social Responsibility Devoting time and efforts to a social cause • Devoting time and efforts to a social or environmental cause • To raise funds for local beneficiaries • Achieved $3 million since 2007 UOB Heartbeat Run/Walk OCBC Today Children Fund • To help children from distressed families • To drive programs to mentor, support and counsel children
- 12. 11 Situational Analysis Strategy 1 Strategy 2 Conclusion CIMB’s CSR in Singapore Coalition Against Bullying for Children and Youth (CABCY) •Set to be the biggest in South-East Asia •Donation of $1 for every registration •To Attract 18,000 participants ( potential targets for acquisition) •CIMB customers to enjoy exclusive priority purchase of 1800 slots and 10% discount “The eclectic mix of people, fun and excitement that we saw last year has truly left a mark in the hearts and minds of Singaporeans. This event provides CIMB with the right platform to inspire, reignite people’s passion and spread the unified message of health, happiness and the spirit of giving back to the community,” Mak Lye Mun
- 13. 12 Situational Analysis Strategy 1 Strategy 2 Conclusion CSR as part of Corporate Strategy Recommendations •Leverage on CSR to drive customer trial, brand loyalty as well as increase brand equity •Sponsor events & activities that are associated with the target audience(e.g mass affluent) •Translating brand awareness into customer acquisition.
- 14. 13 Situational Analysis Strategy 1 Strategy 2 Conclusion Recommendations for CIMB Singapore CSR Devoting time and efforts to a social cause Community Development • Growing Ageing Population • Give back to elderly through new facilities engagement/ performance • Distribution of welfare packs with daily necessities • Estimated cost :$20,000
- 15. 14 Situational Analysis Strategy 1 Strategy 2 Conclusion Corporate Social Responsibility Devoting time and efforts to a social cause Elderly/Pioneers Customers CIMB Employees Undergraduates Two-fold Effect 1. Networking session for undergraduates 2. Work-life balance for employees 3. Improve brand image amongst customers • Partner Organisation: Kreta Ayer Resident’s Committee • Organizing Committee 4 hours a week for 3 months leading to the event • Participants One-day event
- 16. 15 Situational Analysis Strategy 1 Strategy 2 Conclusion Conclusion Quantitative and Qualitative Quantitative: Maximise consumer engagement through all channels, including digitally. Qualitative: Increase bank’s distinctive brand awareness and brand image through sponsorship of high profile and giving back events.
- 17. 16 fin
Editor's Notes
- There’s no substitute for a strong brand reputation. It takes time to build, and it’s hard to regain if it falters. That sentiment has special relevance for banks, especially after the last financial crisis. Whether because of hidden costs, hard-to-understand contract terms, a lack of customer service or awareness of instances of corruption around the industry, their confidence in their banks has been shaken. And as choice increases, customer perceptions about individual brands are becoming increasingly important for long-term success. Strong brand: 3x more market share then a brand with moderate reputation higher loyalty rates, less vulnerable to competitive market activities
- Cap – prevent use on unusually large ticket items like cars / down payment for tours/holidays Minimum – encourage spending! But min per transactions causes inconveniences Rebate – costs $$!
- Expanding to other – Singaporeans spend $415 on restaurants – and if only attractive deal, they use our cards on average 8 times a month, online is next largest spending at $395 a month (after transport) Remove minimum $50 per transaction Increase cap to $80 (monthly spending up to $2k)
- Why online spending? – Largest spending category with almost $400 a month Why retain can still be attractive? Yes 1.2% lower than the next best, but can combine both online and dining instead of online for FRANK or dining only for ANZ.
- The reason we choose to target the ageing population is because to attract the mass affluent clients who can relate to or feel connected to the pioneers of Singapore.
- STAND OUT WITH A DISTINCTIVE IMAGE The value of a specific brand is derived from a few indicators, but brand image carries 51 percent of the weight, making a distinctive image a critical way to differentiate your brand. Nielsen research shows that well-branded advertising communicates its brand through audio and video, and it uses brand cues early and often. It often also uses mnemonic devices—iconic characters or music that immediately identify the brand. MAXIMIZE CONSUMER ENGAGEMENT ACROSS VARIOUS CHANNELS High top-of-mind awareness is one of the leading indicators of high brand equity, proving that understanding how to connect with consumers across touch points is the cornerstone of growth for the industry. With the rapidly evolving tech landscape, consumers are interacting with their retail banks in more diverse ways than ever before—at branches, ATMs, on their mobile phones, with their tablets and on the web. The takeaway for all industries—including financial services—is that interacting with customers is imperative, and so is capitalizing on opportunities to engage with them, build awareness, drive discovery and ultimately affect sales. OFFER RELEVANT AND PERSONALIZED EXPERIENCES In recent years, companies have created experiences that adjust automatically, respond in real time, predict problems before they occur and deliver tailored services to consumers. These advancements have created new standards for customer interaction and leveled the customer service playing field in the process. So while reputation remains a key driver of brand equity, our research shows that relevance (“bank for me”), customer focus, experience and expertise are also important differentiators.