bank study 2010 brazil summary
TRANSCRIPT
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
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Differential CVA Solutions
• Measure and diagnose the Perceived Value in comparison with market
competitors. The metrics can be used for building Action Plans that will impact
market share and profitability – where CVA Solutions can facilitate this
changing process.
• A “Value Tree” is developed based on inputs from interviews with end users
and stakeholders. From the Value Tree (Perceived Cost-Benefit Tree), a list of
major attributes is generated in order of impact, where attributes with
competitive advantage is can be used for “communication” and attributes that
need to be improved can be used for action plans.
• With a list of Perceived Attributes to improve, CVA experts with client’s
executives will study internal metrics that best correlate with the attributes and
set objectives for improvement, timing and leaders. This is the baseline for the
Action Plan phase.
• The increase of Perceived Value generates improvement in market share and
profitability, according to our experience with more than 3.800 cases in the last
14 years.
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Regional Offices
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Clients
Banking/Finance/Insurance Consumer Goods Entertainment/Services Petroleum
ANZ Bank Colgate Palmolive Disney British Petroleum
Bradesco Heineken Exhibit Group/Giltspur Castro Oil
Champion Mortgage Jequiti Hotéis Atlantica Pharmaceuticals
Chase Manhattan Bank Kraft Foods Sky City Casino Roche
Chubb Seguros Whirlpool UOL Telecommunications
GE Capital Electronics / Hi-Tech Forestry & Paper Products Aliant Telecom
HSBC Allied Signal International Paper Bell Canada
Itaú - Unibanco Celestica Mead Corporation British Telecom
Liberty Datex Ohmeda Rock-Tenn Claro
Mapfre Hewlett Packard Health Industry Fiji Telecom
Mastercard Itautec 3M Lucent Technologies
Mutual of Omaha Legend Amil New Call
Porto Seguro Nokia Cross Country Travel Corps Nortel Networks
Santander Philips Dasa Oi
Standard and Poors Texas Instruments Fleury Medicina e Saúde Telecom New Zealand
State Farm Insurance Energy/Power Golden Cross Telstra Australia
SulAmérica Seguros Comgás Laboratório Sérgio Franco Vodafone New Zealand Tata Telecom Suncorp Nicor Energy Medial
Visa Peco Energy NotreDame–Intermédica
Zurich Seguros Suburban Propane OdontoPrev
Building Supplies We Energies Omint
Fletcher Challenge Education Porto Seguro
Cars and Trucks Centro Educacional Integrado Qualicorp
Daimler Chrysler HSM SulAmérica Saúde
Telecommunications
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Value
Value is the relation cost-benefit perceived in the acquisition and / or usage of a product and / or service.
COST Money Time Energy Cost of opportunity …
BENEFIT Product Service Emotional Benefits Brand …
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BASE OF CLIENTES
•Attract New Customers •Brand Attractiveness = Net share less rejection Attraction
•Increased attraction via communication with the marke
•Diminish rejection providing good experience for
current clients (current value perceived by customers)
•Increase business with existing customers •Perceived value reflects the experience of current customers
•Perceived value is the cost-benefit of your company compared
the cost-benefit of their competitors
•Tree Value diagnose what are the critical attributes
to implement improvements
•Loss of customers. Why? •Perceived Value worse than competitors / rejection of former clients
•Net attractiveness of competitors / promise of competitors
Objective: sustainable and profitable growth. How?
New clients
Current Clients
EX-Clients
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CVA Ratios
DEFINITION VALUE COST
DESCRIPTION
Bellow average < .98 < .98 < .98
Products and services are perceived
as being inferior to competitors
Parity (average) .98 - 1.02 .98 - 1.02 .98 - 1.02 Products and services are perceived in
parity with competition
Above average 1.03 - 1.10 1.03 - 1.08 1.03 - 1.15 Products and services are perceived
as being superior to competitors
World Class > 1.10 > 1.08 > 1.15
Products and services are perceived as
offering exceptional superiority vs
competition
BENEFIT
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Impact Weight: Declared X Econometric
+
+
IMPACTO
DECLARADO
IMPACTO
ECONOMÉTRICO
Attribute =
High
Importance
Differentiator
Attribute
Non
differentiator
Attribute
Attribute =
Low
Importance
Declared Impact
Econometric Impact
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Prioritization – VPI e VPC
Alto
Desempenho (CVA)
1,00
Baixo
Alta prioridade de comunicaçãoAlta prioridade de melhoria
VPI VPC
Alta
Baixa
Imp
ort
ân
cia
Re
lati
va
VPI High priority for improvement
VPC High priority for communication
Performance (CVA)
Relative Importance
High
Low
Low High
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VPC and VPI
VPC – Value Priority for Communication: Prioritize the
attributes which good performance most leverage the
Communication effort = attributes with high impact weight and
high CVA
VPI – Value Priority for Improvement: Prioritize the
attributes which improvement most leverage the Perceived
Value = attributes with high impact weight and low CVA
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Year 1 Year 2 Year 3
CVA (-4 Months)
MARKET
SHARE
*Based on the study PIMS (PROFIT IMPACT OF MARKET STRATEGY) RESEARCH PROGRAM prepared by
the STRATEGIC PLANNING INSTITUTE (CAMBRIDGE, MASSACHUSETTS, USA)
Why we should increase CVA?
Increase of CVA leads to increase in MARKET SHARE*
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Low Average High CVA
ROI %
Increase of CVA leads to increase of ROI* (return on investment)
Why we should increase CVA?
*Based on the study PIMS (PROFIT IMPACT OF MARKET STRATEGY) RESEARCH PROGRAM prepared by
the STRATEGIC PLANNING INSTITUTE (CAMBRIDGE, MASSACHUSETTS, USA)
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Value for Industry Econometrics Impacts
Value Benefits CostsScore Impact % Impact %
1 Appliances 9,28 59 41
2 Technical Service 8,68 53 47
3 Commercial Relationship with Retailers 8,48 48 52
4 Clinicas Analysis Labs (usuer) 8,48 35 65
5 Heavy Vehicles (Trucks) 8,38 48 52
6 Cosmetics - direct sales 8,22 40 60
7 Televisions 2010 8,21 40 60
8 Beer - (the consumer at the bar) 8,15 62 38
9 Computers 2010 8,04 39 61
10 Hotels 8,03 43 57
11 Business Magazine 7,98 42 58
12 Mobiles Phones 2010 7,75 45 55
13 Insurances (inurance brokers) 7,65 40 60
14 Auto executives 7,62 50 50
15 Banks Premium 2010 7,39 34 66
16 Auto Insurance 2010 (users) 7,39 24 76
17 Supermarkets 7,30 47 53
18 Credit Card 2010 7,21 46 54
19 Oral hygiene products - (Dentists ) 6,98 68 32
20 Retail Bank 2010 STD 6,73 31 69
21 Mobile operators 2010 6,65 40 60
22 Dentals Plans (users) 6,56 40 60
23 Health Plans (users) 6,19 40 60
Source: Database CVA Solutions
Industry
SOW: Share of Wallet Yellow means equal Red means worse Green means better
Total Customer Value Management
Benefits to YOU
Market Place 1. 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 Company 1. 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
