Arts of Marketing Strategies and Tactics to Improve Deposit Growth
Deposits Remain the Cornerstone of Retail Banking:
- Customers define their primary bank as the one where they
have their Deposit Account
- Deposit customers are the best source of cross-selling
Opportunity
- Deposits represent a very stable source of funds
- Virtually impossible to run an effective retail bank of any size
without a culture of deposit gathering and deposit growth
Deposit Growth Requires Delivering Value Across a Wide Spectrum of Areas:
- Convenience
– Comprehensive branch and ATM network, supported
by internet, telephone etc.
- Best in Class Customer Service
- Products and Pricing
- Market Segmentation
Deposit Sales Culture:
- Most banks speak in terms of having a credit culture, but not
necessarily a deposit culture
- A deposit culture must emphasize:
- Sales leadership at all levels
- Sales support
- Detailed measurements of the business
- Competitive products and pricing
- Effective compensation programs
Sales Support: Driving Change at the Front Line through a Consistent Sales Process:
- “Needs-based” selling process to support relationship building
with all clients
- On-Board” new customers
- – “2 by 2 by 2”
- – Two days after a new account is opened, call the customer
and thank them for their business
- – Two weeks after an account is opened, follow-up to make
sure that they have received debit card and checks
- – Two months after account is opened, call to ensure that
everything is going smoothly and to see if there is anything
else you can help them with
The 10 Elements of a Good Marketing Plan:
A good Marketing Plan includes these 10 elements:
- Describe Your Business
- Conduct a Situation Analysis
- Define Your Customer
- Strategize Your Market Entry
- Forecast your Sales or Demand Measurement
- Define Your Marketing Budget
- Integrate Your Marketing Communication
- Identify Sales Channels
- Track Marketing Activities
- Evaluate Your Progress
Distribution Method:
- Part of the challenge of marketing is figuring out which distribution method to use for your business.
- Include all relevant distribution channels:
- Retail: Stores selling to final consumer buyers (one store, or a chain of stores).
- Wholesale: An intermediary distribution channel that usually sells to retail stores.
- Direct mail: Generally catalog merchants that sell directly to consumers.
- Telemarketing: Merchants selling directly to consumer buyers at retail via phones.
- Cyber-Marketing: Merchants selling directly to consumer buyers at retail prices, or business-to-business products and services at wholesale prices via computer networks.
- Sales force: Salaried employees of a company or independent commissioned representatives who usually sell products for more than one company.
Corporate, Business and Marketing Strategy :
+Corporate Strategy
+Strategic Direction Resources Constraints
+Market Knowledge Opportunities Threats
+Business and Marketing Strategy
Sales Force, Internet and Direct Marketing Strategies :
- Determine the role of the sales force in the promotion strategy
- Define the selling process ( how selling will be accomplished)
- Decide if and how alternative sales channel will be utilized
- Design the sales organization
- Recruit, train and manage sales people
- Evaluate performance and make adjustments where necessary
Retail Banking Products in XYZ:
1) Credit Card
2) Any Purpose Loan – Against Security
3) Salary Loan- Lien on Salary/ Service Benefit
4) Education Loan
5) Personal Loan- For professional & Self employed person
6) Overseas Job Loan- Against Security
7) Doctors Loan
8) Auto Loan
Target Customer:
Target Customer of Retail Business is divided into two basic segment :
a) ETB (Existing to Bank)
b) NTB ( New to Bank)
ETB Customer ( Existing to Bank): Following customers are considered as ETB customer in JBL
- A) All JBL staff
B)Existing loan/liability customer
“Selecting ETB customers for retail business will not only minimize the credit risk but also strengthen the existing relationship with our valued customer to the bank.”
NTB Customer ( New to Bank): Salaried persons of all banks and renowned MNC/LLC ,HNW/Club Member may be chosen as NTB customer for retail business.
Challenges for XYZ:
1) Aggressive direct marketing and expansion by most of the private banks pose a big
threat.
2) Present position of deposit mix of our bank is:
Low Cost and No Cost deposit = 26%
High Cost deposit = 74%
_______________________________________
Total = 100%
3) Product features alignment
4) Design new products and marketing accordingly.
5) Increasing revenue generation while simultaneously minimizing cost.
6) TAT ( Turn around time)
Direct Sales Team Unveiling The New Business Path :
To create new business opportunity with contemporary sale effort, the followings are the key areas to ensure redefined business growth in retail banking:
- Sales team formation with contemporary tools and market practices
- Career progression plan for sales team
- Effective HR administration and compensation for sales team
Advantages of Direct Sales Channel :
- Flexibility in terms of
- Set up
- Scalability in response to market dynamics.
- Penetration/exit
- Variable costing (which is highly cost effective) with a direct link between performance and compensation.
+Mobility and coverage in reaching out to clients who will otherwise not be covered by branches.
- Lastly, DST will enable the bank a performance driven pay structure of basic salary and commissions i.e. cost of acquisition that is lower than that of branch channel.
Marketing Strategies for Liabilities:
- Brand Management
- Promotion
- Advertisement
- Sales Promotion
- New Product Models
Face to Face Comunication:
- Smile
- Make eye contact
- Use the customer’s name
- Greet the customer
- Smart body language
- Smooth impression
- Sharp nail
- Clean teeth
- Recovery from bad smell
- Clean dress
- Clean shave
Emotional Bank Account:
** Positive behaviors create “deposits” in the account, which result in trust and strong relationships that add value.
** Negative behaviors, however, are like “withdrawal”
-often resulting in a “bankrupt”, dead relationship.
** equal behaviors of all customers will create new customer.