Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger
32 CROSS-SEGMENT OFFERING – UTILIZING THE LINK OF BUSINESS AND PERSONAL NEEDS There is room for improvement in cross-segment sales resp. service models as a lot of banks use just ad-hoc campaigns for this purpose ANALYSIS OF THE STATUS QUO The majority of the institutions have at least an ad-hoc (campaign driven) cross-segment capturing practice and 77% of the interviewed banks do apply these models. Out of these roughly three quarters, just 15% have a complete and elaborated methodology and the huge "rest" of 85% uses ad-hoc campaigns (see fig. 25). These actions are usually linked to one specific product resp. service offer but do not offer a joint service model for both private and business needs. Fig. 25: Cross-segment offering practices in CEE banks [%] Banks not applying cross-segment sales/service 23 Banks with methodology for cross-segment sales/service 1) 15 Banks applying cross-segment offering 77 85 Banks using adhoc campaigns 1) 1) Out of banks applying cross-segment offering Source: Roland Berger Strategy Consultants There is an important link between micro sub-segments and cross-segment offering because cross-segment target groups can be easily originated from micro sub-segmentation. For example, banks may use the link between targeted professions and the (usually) private affluent individuals segment assuming that a lawyer PI client needs a business account, too. And vice versa, lawyers may be targeted by the banks to gain affluent PI clients. Managing both the private and professional sides of a client relationship increases the gross income and can even double it COVERAGE MODELS AND RECOMMENDATIONS FOR CEE BANKS Previous European case studies highlighted the following important facts: > Dual relationship is worth 30% to 100% more than single relationship. > The proportion of NBI share between the private and the professional side varies strongly by sub-segment and develops over the life cycles of the business and of the business owner. > Marketing strategy and product offer require operational and tactical segmentation. Based on these three facts, the split of business and private needs of clients shall be examined considering local market-specific sub-segment specialties. The results can lead to various important conclusions as to the optimal client coverage model. In the example of figure 26, "X1" priority means that the client will generate a higher gross income for the bank on the professional side. Therefore in case of e.g. the triumvirate coverage model (see fig. 28), the business relationship manager shall play a more important role. At the same time for "X2" sub-segments, it is worth focusing on the clients' private needs and serving them rather as private, not as micro clients.
CROSS-SEGMENT OFFERING – UTILIZING THE LINK OF BUSINESS AND PERSONAL NEEDS 33 The key drivers of multiple-bank relationships require some further analysis of the micro clients' preferences on the relevant market from each bank. Certainly not all clients like one-stop shopping. The example in figure 27 shows that "clarity" is an important argument for both client types: some like one-stop shopping because it grants higher clarity for them, others prefer separation for the same reason. Moreover the example proves that it is worth communicating the importance of time saving, convenience and one dedicated contact person when focusing on clients who prefer one-stop shopping. The main reasons for – and success factors of – one-stop shopping are clarity for the customer and one competent contact person
- Page 1: RETAIL BANKING IN CEE EXPLOITING OP
- Page 5: PREFACE 3 PREFACE EFMA AND ROLAND B
- Page 8 and 9: 6 SUMMARY OF KEY FINDINGS SUMMARY O
- Page 11 and 12: 9 PART I IMPORTANCE OF MICRO BUSINE
- Page 13 and 14: IMPORTANCE OF MICRO BUSINESS - HIGH
- Page 15: IMPORTANCE OF MICRO BUSINESS - HIGH
- Page 18 and 19: 16 MICRO STRATEGIES - ELABORATING S
- Page 20 and 21: 18 MICRO STRATEGIES - ELABORATING S
- Page 22 and 23: 20 MICRO STRATEGIES - ELABORATING S
- Page 24 and 25: 22 MICRO STRATEGIES - ELABORATING S
- Page 26 and 27: 24 MICRO STRATEGIES - ELABORATING S
- Page 29 and 30: 27 PART III RISK MANAGEMENT - MANAG
- Page 31: RISK MANAGEMENT - MANAGING RISK COS
- Page 36 and 37: 34 CROSS-SEGMENT OFFERING - UTILIZI
- Page 38 and 39: 36 CROSS-SEGMENT OFFERING - UTILIZI
- Page 41 and 42: 39 PART V SUMMARY - RECOMMENDATIONS
- Page 43 and 44: SUMMARY - RECOMMENDATIONS FOR "MICR
- Page 45: METHODOLOGY AND SCOPE OF THE STUDY
- Page 49: 47 Many thanks to the following per
CROSS-SEGMENT OFFERING – UTILIZING THE LINK OF BUSINESS AND PERSONAL NEEDS 33<br />
The key drivers <strong>of</strong> multiple-bank relationships require some fur<strong>the</strong>r analysis <strong>of</strong> <strong>the</strong><br />
micro clients' preferences on <strong>the</strong> relevant market from each bank. Certa<strong>in</strong>ly not all<br />
clients like one-stop shopp<strong>in</strong>g. The example <strong>in</strong> figure 27 shows that "clarity" is an<br />
important argument for both client types: some like one-stop shopp<strong>in</strong>g because it grants<br />
higher clarity for <strong>the</strong>m, o<strong>the</strong>rs prefer separation for <strong>the</strong> same reason. Moreover <strong>the</strong><br />
example proves that it is worth communicat<strong>in</strong>g <strong>the</strong> importance <strong>of</strong> time sav<strong>in</strong>g, convenience<br />
and one dedicated contact person when focus<strong>in</strong>g on clients who prefer one-stop<br />
shopp<strong>in</strong>g.<br />
The ma<strong>in</strong> reasons for – and success<br />
factors <strong>of</strong> – one-stop shopp<strong>in</strong>g are<br />
clarity for <strong>the</strong> customer and one<br />
competent contact person
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