Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger

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MICRO STRATEGIES – ELABORATING SEGMENTATION AND SERVICE MODEL
Therefore banks that are not experienced in the micro segment should make their own
local market evaluation, define strengths and opportunities and select two to three
target sub-segments (compare fig. 11) to gain experience in a first step. A clear classification
of sub-segments into mass and premium is the next step driving "cost to serve"
(see details in the following section), following the scheme of the private clients. The
private affluent side of the banking relationship is usually closely connected with the
business side.
Healthcare professions are the most
attractive sub-segments – All four
prioritized groups can be targeted in
a bundle
Analyzing the professions more in-depth allows further sub-segmentation (compare
fig. 12).
Based on the research, professionals may be less attractive in terms of their sheer number.
But they can quite easily be captured with dedicated offers. Healthcare-related professions
(medical doctors, dentists, pharmacists, veterinary doctors) are most attractive
segments by GI per client. Other segments are less promising mainly due to their lower
need for credit products and their possibly lower transaction traffic. At the same time,
the four prioritized segments constitute the majority of potential professional clients
with medical doctors making up almost 50%.
From the banks' perspective, all free professionals represent significant GI potential
from savings and investments in the later stages of their life cycle, e.g. medical professionals
shift from financing their business to private wealth management or other free
professionals accumulate wealth and demand investment products to maintain private
savings.
Generally retail & wholesale,
production and construction are the
most attractive sectors in terms of
both volume and value per client
In the group of small companies, the number of clients makes retail & wholesale the
largest segment by far. Production and construction lead in terms of value per client
and of annual GI per client (compare fig. 13), followed by retail & wholesale and agriculture.
Transportation, culture/sport/education and hospitality are smaller and thus
low-priority segments but may show distinctive needs (e.g. leasing in case of transportation).