bank study 2010 brazil summary

This Study and Customer Value

• This is a summary of a Customer Value Study of banks in Brazil: It tells you which banks are better and how share of wallet, cross selling and reducing migration can be effective

• We help companies with Value Creation and improving Customer Value, market share, loyalty, share of wallet, and increased profitability

• Customer Value studies start with Value trees. Value is a juxtaposition of costs and benefits

SOW: Share of WalletYellow means equalRed means worseGreen means better

Total Customer Value Management

Benefits to YOU

Market Place1. Measuring Customer Value Added, the ratio of the value you add to

your Customers, versus the value your competitors add to their Customers

2. Why people buy from you and not from your competitors, and vice-versa, Predicting loyalty, market share, and improving business results. Increase market share, and reducing pressure on price

3. Total marketplace assessment: Voice of the Customer and Voice of the Competitor

4. Increased referrals, word of mouth sales, sales per salesman (as much as 30%), less pressure on pricing, pricing from a Customer Value perspective

5. Reduction of complaints (by 70% at one clients’) in the quarter following the TOTAL CVM intervention. Customer satisfaction scores have improved by over 10%

6. Changing the rules of the marketplace, and making price less of an issue

7. Converting call centres to Action Centres

8. Using social media, social marketing and digital media for improving value

Employees:1. Measure Voice of Employee, increase employee self-esteem and

awareness. Using value to reduce employee and Customer churn. Build individual promises to ensure Customer’s Bill of Rights

2. Equate improvements in employee value, business processes, and customer products and services to increased customer loyalty and bottom line business benefit.

3. Helping CxO’s align better with Customers. For example:o For CFO’s, measuring Customer Capital, Customer Assets, correlation between value

and share price, pricing techniques based on the Customer and perceived Value, segmenting Customers from shareholder value viewpoint, reporting CVA scores with financial data, looking at financial systems and billing/credit from convenience of Customer etc.

o Or for HRD heads, assessing Customer needs, and providing education based on this, hiring based on Customer value, measuring and adding employee value added, correlating employee value to shareholder and Customer value, reducing employee churn etc.

4. Providing education to all levels of employees including touch points, and certifying them for their ability to handle and work with Customers

5. Increase of teamwork and employee happiness, building of employee self esteem, awareness. Building a pro-active Customer focused organisation

6. Putting a Customer Performance Management System into place.

7. Using Customer Value metrics for rewards and recognition. Often Total CVM forms a major part of the Balanced Score Card

• End result is employee engagement and commitment

Within the Company1. Improving service quality

2. Better teamwork and internal Customer focus

3. Building Customer centric circles, Customer conduits.and the Circle of promises among employees to deliver the Customer’s Bill of Rights. This also builds a continuous Customer Improvement Program

4. Understanding competitive strategies and pre-empting competitive moves by competition. Building Customer strategies to drive business strategies

5. Using Customer value to decide on product and technology offerings Using Customer Value for valuation in M&A

6. Understanding the deterioration in touching and Customer Value in the delivery chain Improved Customer focus and Customer Value by channel partners, leading to an increase of value in the distribution chain.

7. Using Customer Value for product decisions

Shareholder Value

1. Increasing profits and shareholder Value

2. Correlating Employee Value to Customer

Value to Shareholder Value

Gautam Mahajan

phone: + 91 98100 60368

mahajan@customervaluefoundation.com