Client Centric Product Development in Retail Banking by Akif Shaikh

7/31/2019 Client Centric Product Development in Retail Banking by Akif Shaikh

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CLIENT CENTRIC PRODUCT

DEVELOPMENT IN RETAIL BANKING

Presented BY

Akif M Shaikh

SVP-Head of Products & Segment Banking

AL HILAL BANK


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As a best practice, it is imperative that robust Product

Development process is formulated for developing new

products and services, covering the various stages from the

conceptualization to commercialization in order to create a

financial product or service for delivery to its customer in

accordance to theirneed

OVERVIEW:


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1. Engaging customers in the PRE-DEVELOPMENT phase.

2. Understand how customerPROFILING improves customer acquisition & retention.

3. SAVE your customer

Predict, Identify & Act now.

4. Understanding the effectiveness ofSELF-SERVICEoption in branches for Greater

customer satisfaction & efficiency.

5. NEW Products to Old Customer rather than OLDProducts to New.

6. Customers Redefining Banking EXPERIENCE as a whole.

SCOPE...


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1. Engaging customers in the

2. PRE-DEVELOPMENT phase.

1.


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Retail Banking is built largely around product Silosa model that is

creating serious problems in the current economic environment.

Innovations in retail banking over the past few decades typically have

been launched and maintained in Siloseach with its own sales and

distribution model, technology, and operational infrastructure.

CONCERN:


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Retail Banks that dismantle their products silos will quickly differentiate

themselves from competitors by staying profitable in a era of shrinking

revenues and expanding regulations.

We do not view the shift to a customer centric organization as optional.

Retail Banks that are up to the challenge will quickly differentiate themselves

from competitors that cling to their silos. Positioning for competitiveadvantage, its of utmost importance to learn more about the customers needs,

wants and expectation to help them boost sales and to build Customer

relationship.

WHATS THE WAY FORWARD ?

Answer:

Engaging Customers In The Pre-Development Phase.


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Understand how customerPROFILING

improves customer acquisition & retention.

2.


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ADAPTINGSEGMENTAPPROACH

THAN

PRODUCT APPROACH


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What is Segmentation?

When a bank moves beyond one product or service offered to

one type of customer, it has started down the path of

segmentation. If the product traditionally appeals to men,perhaps a variation will appeal specifically to women, thus

segmenting the customer base. If the product appeals to young

adults, perhaps a variation will appeal to tweeners. There may

be a product that appeals to tweener males vs. tweener females.


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Why Segmentation?

Better matching of Customer Needs

Enhanced Profits

Enhanced opportunity for growth

Retail Customer

Target Communications

Market Segment Share


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PD SEGMENTED APPROACH

1) Identify Customer Needs &

Segment the Market

2) Develop profiles of resulting

segments

1) Evaluate attractiveness of each

segment

2) Select Target Segment

1) Identify differential advantage for

each segment

2) Formulate marketing mix

1) Develop Marketing plan for each

segment

2) Develop Marketing Organization

Market Segmentation Market Positioning

Market Segmentation Market Planning


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BASIS FOR SEGMENTINGCUSTOMER MARKET


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CRITERIA FOR EFFECTIVESEGMENTATION


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SEGMENTATION

Personal Banking Group


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SEGMENTATION

SEGMENTS

X-PAND

(SME)

SEGHAAR

(KIDS BANKING)

ASDIQA

(YOUTHBANKING)

LAHA

(LADIESBANKING)

THARWA

(WEALTHMANAGEMENT)

PERSONAL

(MASS)


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SAVEyour customer.

Predict, Identify & Act now.

3.


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Loyalty


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LOYALTY

Retention of

Customers ?

Repeat

Purchases ?

Create Profitable

Customers ?

Acquisition of

Customers ?More Information

on Customers ?

Reward Loyal

Customers ?

Just Another

Marketing Program ?

Reality

.

.could be all of the above !!!!


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PrimaryDrivers

Physical product Service product Service delivery Service environment

Ethics Image Reputation Positioning

Loyalty Programs Co Brands Alliances Special treatment Affinity Customer community

Price Product /Service*

Brand** Relationship

Purchase price Effort Time

Customer cost of

using your product

Complete Customer Relationship Experience

Customers want an end-to-end relationship experience


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Customer Value Perception

Organizations translation of Value

Fee Income

Simplifiedproduct offering

Bottom line

Life Time Free

Transparency in

charges

Value for money

One stop Shop for

all financial needs

Network

availability

Best in class

% returns/cancellations

# servicecalls/repairs

# customerinquiries

# billing queries

Ease of availability

Relevant Features

Wide service range

Easy accessibility

Speedy service

Customer empathy

Resolution of query

the first time

Strengthening

Brand image

Advertising

costs

Aspirationalvalue

Flash Value

Inspiresconfidence

Customertouch time

No. ofproducttraininghours

Understandingneeds

Processes &ServiceKnowledge

Preferentialoffers

PriceProduct /Quality

CustomerService

Brand Relationship


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1st : Have a clear articulated Customer Loyalty Strategy

Covers the entire customer experience during his lifecycle

Covers all customer touch points

Addresses his existing / potential relationship with the company

2nd : Must be in sync with Business Objectives

Customer / Segment profitability

Customer Contact strategy

3rd : Business Process to be customer centric

4th : Design Customer centric & Profitable Loyalty programs

Risk, Underwriting, Operational processes

Acquisition, Customer service, Marketing


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Loyalty

Strategy

Business

Objectives

Process

Changes

Loyalty

Programs

Lifecycle Experience ---- Define value proposition to customer

segments

Dynamic ---- Ability to react to changing customer needs and

behaviors

Seamless--- across all Channels, Business Functions and

touch points

Flexible ---- Ability to accommodate changes without

compromise Value & Choice ---- Value based on Customer Profitability &

offering relevant choice ( Bought-out or

Co- Branded )

Personalized ---- to the customers unique profile based on

Analytics

Branded---- Bought-out or Co-branded to address emotional

Targets ---- Program objectives clearly communicated

Metrics ---- Measurement capability in line with objectives


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Loyalty is not about short term rewards.it is about end-to-endcustomer experience with your products / services.

Companies need to have a enterprise wide loyalty strategy backed by

customer centric processes to deliver value.

Co branded programs work --- Ensure you get the value proposition

right

Profitable Customer


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Understanding the effectiveness of SELF-SERVICE

option in branches for Greater customer satisfaction & efficiency.

4.


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BRANCH BANKING

FUTURE VISION


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NEWProducts to Old Customer rather than

OLDProducts to New.

5.


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Customers Redefining

BANKINGEXPERIENCE

6.


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Innovative

Reach

Tube Banking


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InnovativeReach


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Innovative

Reach


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InnovativeReach

Auto Mall


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InnovativeReach

Auto Mall


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Customer Power


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Introducing theMoney Station


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Documents

Client Centric Product Development in Retail Banking by Akif Shaikh