Bank Marketing and Customer Service

Bank Marketing And Customer Service
Presented By:
Anirudh Singh 043010 Deepika Raghavan 043020 Irshad Ali 043027 Ragini Pant Page 1 043042 Powerpoint Templates
How is bank marketing different from marketing of other products and services?
Powerpoint Templates
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BANK MARKETING
Customer and banks are found engaged in
discovering creating satisfying
CUSTOMER NEEDS
Powerpoint Templates Page 3
Types of services
Primary
Agriculture
Secondary
Manufacturing
Tertiary
Business(Insuranc e, banking ,legal)
Mining
Trade( wholesale, retail)
Infrastructure
Social
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Characteristics of services
End user
Individual
Tangibility
Human Contact
Expertise
Profit Orientation
Delivery Location
Tangible
High
Professional
Commercial
Customer
B2B
Intangible
low
Nonprofessional
Non profit
Service provider
Industrial
No contact
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NEED FOR BANK MARKETING

Awareness among customer Quality as a key factor Growing competition Technological advancement
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FEATURES OF BANK MARKETING

Intangibility Inseparability Perishability Variability
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BANK MARKETING INVOLVES
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EVOLUTION OF BANK MARKETING

1991 NOW
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Critical examination of goal, objective, strategy, tactic and selling techniques in bank marketing
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GOAL OF BANK MARKETING

CUSTOMER SATISFACTION
QUALITY Transparency Efficiency in terms of service delivery Sustainability INNOVATION
Setting tangible goals allows the promotions success to be measured.

OBJECTIVE
Dual organizational objective
commercial objective social objective Shift from maximizing profits to developing long term relationship with the customers.
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STRATEGY
SHIFTING FROM PRODUCT CENTRIC TO CUSTOMER CENTRIC
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STRATEGY
And finally,
ONE STOP SOLUTION
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SELLING TECHNIQUE
CROSS SELLING
Selling of banks products/services to an already existing customer
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Impact of changing customer profile, product profile, distribution channel on banks business model.
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Consumer Products Distribution channels Marketing strategy
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Consumer
Higher disposable income Development of modern, urban lifestyles Increase in consumer awareness Buying power expanded to new customer segments be it the youth or the urban women Vast rural hinterland India is beckoning and sheer numbers make it impossible to ignore Growing economy Expansion in availability of products and services Easy availability of credit Rising acceptability of debt
There is so much choice today and people do not accept poor service. We cannot make any excuses but need to gear up our systems to provide that level of service. Narayanan Vaghul, Chairman, ICICI Banking Corporation.(2005)
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Today, every city has its premium consumers and its middle class consumers and this has put companies into a fix. They now need to craft strategies that address the subtle differences but satisfy each group equally. So what is the Indian consumer market today? It is a market with three segments. The first comprises the top end with the mindset: I pay more to get more, where the purchase is driven by the emotional surplus that the consumer experiences. The second is the mid-level which thinks: I get good value at a reasonable price. More important, however, is the large block at the bottom which says: I pay less and I get less and is totally satisfied with that.
Products
Traditionally, banks were only concerned with acceptance of deposits from customers and lending surplus money to the suitable customer who want to borrow at some rate of interest. The most common products being offered by banks were savings account, current account, term deposit account and lending products being cash credit and term loans. Banker's main purpose was to manage the savings of people through the mobilisation of funds
Products
ATM (Automated Teller Machine), Internet Banking, Credit Cards, PC banking, EFTs, Debit Cards, Smart Cards etc
Distribution
Bank
Rural Market
Plain Vanilla Route Dedicated micro finance branches Alternate distributio n channels
Urban Market
Intervention
Direct
Internet
Phones
Partnerships
Franchisee
Branches
Partnership with State Administration
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Marketing strategy
With formidable competition from both traditional brick and mortar operations and emerging Internet banks, a large number of banks are having trouble meeting performance expectations because they are unable to differentiate their business, reach customers likely to respond to new sales opportunities or make the most of their valued staff. With changing consumer, the marketing strategy of the bank also needs to get revised.
Marketing strategies
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The Key Challenges Facing the Retail Banking Industry

Increased Competition Lowers Profit Margins
With formidable competition from both traditional brick and mortar operations and emerging Internet banks, customers view retail banking products and services as undifferentiated commodities and shop for the best deal.
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Therefore, retail banks that implement and optimize an enhanced customer contact center experience as a key component of a service differentiation approach will enjoy a tremendous competitive advantage.
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Banks are Dissatisfied with the Results of Their Cross-Selling/Up-Selling Efforts

Banks have had tremendous success in shifting to day-to-day banking services from walk-in branches to lower cost channels. For example, according to a 2005 Capgemini study of 41 retail banks, 58% of all transactions were conducted through remote channels such as automated teller machines (ATMs), Web sites and call centers. However, banks have been disappointed by their relative inability to cross-sell across these non-branch channels the same Capgemini study found that only 14% of sales were closed through remote channels in 2005.
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Although the closing stage of a sales process may occur at the branch, customers prefer to first perform the initial steps in the process via remote channels, most notably the Web. Banks may be losing sales by not being able to provide relevant information or sales and advisory assistance at each step.
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Agent Productivity Continues to Suffer

The average employee attrition rate for call center staff in the retail banking industry is 33%. Entry-level staff may have attrition rates of over 70% while outbound-selling staff have attrition rates that surpass 180%.
Source:by The Corporate Executive Board, a provider of best practices research and analysis focusing on corporate strategy, operations and general management issues Powerpoint Templates
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THE STRATEGIC ROLE OF THE CONTACT CENTER IN RETAIL BANKING
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Facilitate Integrated and Consistent Interactions Across All Channels

Offering an exceptional customer experience via multi-channel interactions comprised of branches, ATMs, phone, fax, e-mail and Web chat is the first step to maintaining a personal connection to customers, particularly those decreasing their visits to branches.
Offer an Inviting Customer Front Door
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Integrate Self-Service with Agent Assistance
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Handle Calls More Intelligently
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Initiate Proactive Contact
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Make More Effective Use of Customer Data and Segmentation

Leverage Demographic Profiling to Establish Customer Intimacy
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Boost the Productivity of Your Agents through Interaction Blending
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Comparative Analysis of Marketing Strategy of ICICI Bank and HDFC Bank.
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Coordination between different departments
ICICI Banks SILO (Product Based) Different departments do not share information
HDFC Banks Relationship Based Departments are interlinked through IT that enables each department to share information Customers are presented with the right product at the right time
Marketing Type
Marketing is not targeted
Customer Relationship
Customers are hoarded Helps build personalized with unnecessary calls relationships with leading to the assumption customers that his/her own bank is not aware of the customer
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SWOT ICICI
Strengths Weaknesses
y y y
Strong domestic market makes ICICI a leading private sector bank in India. International expansion of commercial banking increases profitability of ICICI. Steady financial performance and relatively higher efficiency generates higher returns for shareholders
y y y
Overdependence on the domestic Indian market increases business risk for ICICI. Credit risk concentration increases the default risk of ICICI. Increase in nonperforming loans reduces the profitability of the company
Opportunities
y
Threats
y
Rural financing and loans to small enterprises could increase the market share and profitability of ICICI. Growth in general insurance industry will help increasing the market share of ICICI Lombard General Insurance Company.
Global and domestic economic slow down could further affect financial performance of ICICI.
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SWOT HDFC
Strengths y Franchise strength and market recognition in India and abroad y Diversified revenue streams check financial performance volatility y Increasing capital strength provides higher risk tolerance Opportunities y Investments in ICT could boost financial performance y Growing Indian financial services sector y Positive outlook of the Indian economy Weaknesses y Relative lack of scale hampering competitive strengths y Deteriorating asset quality
Threats y Intense competition likely to erode margins y Likely scenario of increasing interest rates in India y Increasing regulatory spending
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Common mistakes in Bank Customer Acquisition

Narrowly defining new customers Underestimating the potential returns from new accounts Failing to tailor promotional messages to attract new customers Not using a variety of new products are costly mistakes
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Common mistakes in Bank Customer Acquisition

Not offering price appeals. Failing to offer premiuns. Not monitoring new customers costs. Not training employees in handling new customers. Not making a long-term commitment to these new customers.
Consumer Behaviour Matrix in Banking

HIGH
No Purchase
Relational Dependent
Uncertainty
Consumer Behaviour Matrix
Repeat Passive
LOW LOW
Rational Active
Involvement
HIGH
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Product Development in Bank Marketing

There are two parallel paths involved in the NPD (new product development) process:
one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis.
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Six stages for the development of a product

Idea Generation Screening of the concept Assessing of market potential Analysing the cost Test marketing Commercial Launching
The screening of the product concept focuses on the process of narrowing down the list of the ideas generated to a small number of concepts. The assessment of market potential is the third stage in which we find scanning of the market potentials at the apex level. The branch managers can assess the potentials in their command areas. The fourth stage draws our attention on analyzing the cost on the basis of a cost-benefit analysis The fifth stage before launching is test marketing which is found instrumental in minimizing the risk element. Finally, the commercial launch. The Reserve Bank of India is also required to make the regulations liberal so that the public sector commercial banks get an opportunity to make their services or schemes internationally competitive.
Five Product Levels of Kotler
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1. Core Benefit
The fundamental need or want that consumers satisfy by consuming the product or service.
2. Generic Product A version of the product containing only those attributes or
characteristics absolutely necessary for it to function.

3. Expected Product
The set of attributes or characteristics that buyers normally expect and agree to when they purchase a product.
4. Augmented Product
Inclusion of additional features, benefits, attributes or related services that serve to differentiate the product from its competitors.
5. Potential Product
All the augmentations and transformations a product might undergo in the future.
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Latest Developments in the Banking Sector

1.Automatic Teller Machine (ATM) 2.Second Electronic Funds Transfer Point of Sales terminals (EFTPOS) 3. Electronic funds transfer system 4.Electronic Clearing Service (ECS) 5.Credit Cards / Debit Cards 6.Electronic Passbook 7.Home Banking 8.Corporate Electronic Banking
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9.Anywhere Banking 10.Online banking 11.Extension Counter (for example, NRI Services, Personal Banking) 12.SMS Banking 13.Internet Banking a)eTax b)Online money transfer c)Online Bank Security d)Electronic bill payment e)Shop Online f)Other value added services
Innovative products and services introduced in Indian Banking

Citibank Suvidha Premium Savings Account: Free access to domestic airport lounges Free access to premier golf ranges and discount on green fee Daily withdrawal limit of Rs. 1 lakh Earn while you spend: Get 1 Reward Point on every Rs. 150 spent Exclusive discounts at premier stores offered by MasterCardPowerpoint Templates Page 56
Senior Citizen Account: Dedicated Relationship Manager Time Deposits Higher Interest rates exclusive for the clients Deposits are held in units of Rs. 1,000 for easy liquidity Choice of flexible tenures Option of overdrafts against your Time Deposit (allowing you to meet your short-term liquidity needs, while earning higher rates of interest on your deposit) Succession Planning offered by IL&FS Trust Company Ltd. (ITCL)
Innovative products and services introduced in Indian Banking

Oriental Bank of Commerce have prepared a detailed dress code of their employees, others have gone a step forward and are recruiting people from the airline and hospitality industries to improve the quality of front line sales staff. Food cards distributed by HDFC which can be used in select restaurants (where VISA cards are accepted) and for purchase of groceries, the user avails discounts by using such cards. Cash back offer: On every purchase points are credited, which can be redeemed later on.
Thank You
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Bank Marketing and Customer Service

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Bank Marketing and Customer Service

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Bank Marketing And Customer Service

Trade( wholesale, retail)

NEED FOR BANK MARKETING

FEATURES OF BANK MARKETING

BANK MARKETING INVOLVES

EVOLUTION OF BANK MARKETING

GOAL OF BANK MARKETING

Setting tangible goals allows the promotions success to be measured.

SHIFTING FROM PRODUCT CENTRIC TO CUSTOMER CENTRIC

ONE STOP SOLUTION

Consumer Products Distribution channels Marketing strategy

Partnership with State Administration

The Key Challenges Facing the Retail Banking Industry

Banks are Dissatisfied with the Results of Their Cross-Selling/Up-Selling Efforts

Agent Productivity Continues to Suffer

THE STRATEGIC ROLE OF THE CONTACT CENTER IN RETAIL BANKING

Facilitate Integrated and Consistent Interactions Across All Channels

Offer an Inviting Customer Front Door

Integrate Self-Service with Agent Assistance

Handle Calls More Intelligently

Initiate Proactive Contact

Make More Effective Use of Customer Data and Segmentation

Leverage Demographic Profiling to Establish Customer Intimacy

Boost the Productivity of Your Agents through Interaction Blending

Comparative Analysis of Marketing Strategy of ICICI Bank and HDFC Bank.

Coordination between different departments

Marketing is not targeted

Common mistakes in Bank Customer Acquisition

Common mistakes in Bank Customer Acquisition

Consumer Behaviour Matrix in Banking

Consumer Behaviour Matrix

Product Development in Bank Marketing

Six stages for the development of a product

Five Product Levels of Kotler

characteristics absolutely necessary for it to function.

Latest Developments in the Banking Sector

Innovative products and services introduced in Indian Banking

Innovative products and services introduced in Indian Banking

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