marketing management of financial mc

8/8/2019 Marketing Management of Financial MC

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Marketing Management of

Financial Services

L I C of India

STC Chennaimetro


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Confidential

Retail Financial Services Industry

Overview

Over 100 Million Retail investors and still growing

24,000 + Bank Branches in the Country

5000+ Insurance Services Branches

10000+ Brokerages Service Branches

100,000 + CAs

Growing number of Financial Products


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Confidential

Consumer

Optimization

of Insurance

Premium

Manage Debt

efficiently

Distribute Wealth

according to his

wish and not

according to laws

Implement

Budgeting

and

Spending

Plans

Identify Goals that have

financial implications

Home, Childrens

education, Marriage,

Vacation, Manage Life

Style after retirement

Identify

Investment

Options to meet

goals

Take maximum benefit

of tax laws and

regulations to create

additional surplus for

investment

What does the Personal Finance Customer wants ?


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Confidential

Evaluation Of Various Investment AvenuesReturn Risk Marketab

ility /

Liquidity

TaxShelter

Convenience

Current

Yield

Capital

Appreciati

on

Equity

Shares

Low High High Fairly

High

High High

Non-

convertible

Debentures

High Negligible Low Average Nil High

Equity

Schemes

Low High High High High Very High

Debt

Schemes

Moderate Low Low High No tax on

Dividends

Very High


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Return Risk Marketability /

Liquidity

TaxShelter

Convenience

Current

Yield

Capital

Appreciati

on

Bank

Deposits

Moderate Nil Negligible High Nil Very High

PPF Nil Moderate Nil Average Sec 80C

benefit

Very High

LIP Nil Moderate Nil Average Sec 80C

benefit

Very High

Real

Estate

Moderate Moderate Negligible Low High Fair

Gold &

Silver

Nil Moderate Average Average Nil Average

Evaluation Of Various Investment Avenues


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Trends in Financial Services

Distribution

Life Insurance

-Repeat selling (Recycling)

-Short Term and ULIPs

Banks

Captive Audience

Cross Selling

Up selling

Trusted by every one

Full Service Brokerage Houses

Structured Products

Mainly for knowledgeable customers


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Confidential

Need for Financial Planner

Make Wealth Generation process

dependent and not individual dependent Process helps in serving large base of

customers effectively

Focus on Customer wealth enhancementand not product sales


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Confidential

Critical role in todays economy

Financially illiterate population

Complexity of Financial Products in themarket place

Needs some one who can help us dream

for higher goals


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No Differentiators !!!!No Differentiators !!!!

Consumers faced withConsumers faced with commoditisedcommoditised brandsbrands &&

productproductpricing paritypricing parity

Yet most Financial Services Organizations talk aboutYet most Financial Services Organizations talk about

customercustomer -- centricitycentricity


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The question isThe question is what is thewhat is thecustomer really perceiving ?customer really perceiving ?

Financial Services Industry has taken theFinancial Services Industry has taken the

easy option easy option

To clone the FMCGsTo clone the FMCGs


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Cloning the FMCGs of theCloning the FMCGs of the

worldworld One of the biggest blunders :

Brandedfinancial products in the hope that it will create a

differential in the marketplace.

But it is easier to remember the brand name ofa soap than

that ofa financial service.

Cant touch, see, smell, taste the promise offuture gains.

Branding commoditised products does not produce

customer - centricity


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The realdifferentiator ofThe realdifferentiator of

customercustomer centricity in a commoditised worldcentricity in a commoditised world

of financial productsof financial products --

ensure that customer is happy with the productensure that customer is happy with the product

he has boughthe has bought

-- for a longer timefor a longer time


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Myth 1 The larger the range of products, the morecustomer-centric I am.

MythbusterMythbuster The range of products hasThe range of products hasemerged from beingemerged from being

competitioncompetition--centric.centric.

(ULIP)(ULIP)


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Myth 2 Better technology (read CRM) leads to

better customer service.

MythbusterMythbuster TechnologyTechnology

alone does not deliver,alone does not deliver,

helps people do.helps people do.

(IT & CRM)(IT & CRM)


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Myth 3Launch a product and the customer will start

using instantly.

- Give a customer a card and he will learn how to play

with it immediately

MythbusterMythbuster Customers needCustomers need

To be educated tooTo be educated too

(Consumer awareness)(Consumer awareness)


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MythbusterMythbuster Customers are notCustomers are not

only present where competition is.only present where competition is.

Myth 4 The only way to get a customer is from

competition.


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Myth 5 No difference between marketing & selling

MythbusterMythbuster Selling focuses on the needs ofSelling focuses on the needs of

the seller; marketing on thethe seller; marketing on the

needs of the buyer.needs of the buyer.

(Need based selling)(Need based selling)


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Myth 6 In the absence of relationships trust builds financial

brands

MythbusterMythbuster Trust is not a differentiator at allTrust is not a differentiator at all

it is the very minimum that the customerit is the very minimum that the customer

expects!!expects!!


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So what will the differentiators beSo what will the differentiators be

Technology (Technological updation or upgradation should be there to be number one in

competitive environment)

Brand and Market leadership

(It is compulsory now to maintain brand image to etched in the minds of

customers and sustain the market leadership)

CRM Initiatives

(Consumers awareness and expectations are increasing and we should also

make ourself match to their expectation


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The realdifferentiator ofThe realdifferentiator of

customercustomer centricity in a commoditised world of financialcentricity in a commoditised world of financial

productsproducts --

ensure that customer is happy with the product he has boughtensure that customer is happy with the product he has bought

--for a longer timefor a longer time

--And He should feel that he has bought the best productAnd He should feel that he has bought the best product

available in the Market.available in the Market.


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Build a customer centric advisoryBuild a customer centric advisory

based modelbased model


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A survey conducted showsA survey conducted showsthatthat

The age group of 20 to 40 spend lotThe age group of 20 to 40 spend lotof time thinking about their futureof time thinking about their future

financial security.financial security. Indians are ranked at the lowestIndians are ranked at the lowest

appetite for risk at Asia pacific riskappetite for risk at Asia pacific risktaking index .taking index .

Identifying the Gap


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AWARDS

Readers DigestAward -2008 SKOCH ChallengersAward 2008 for

Jeevan Madhur.

Loyalty Awards2008 - Insurance

Sector

Golden Peacock Award

for Excellence inCorporate Governance

Web 18 Genius of the

web awards 2007

Outlook Money NDTV Profit

Awards 2007

NDTV Profit Business

Leadership Award

2007 & 2008

CNBC Awaaz

Consumer

Awards 2007


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Activities for sustaining Brand Image1. ECS:

By filling a mandate form and getting it validated from the bank, premium can be paidthrough ECS in select centres where this facility is made available.

2.LIC PORTAL

By registering the policies through our portal (validation not required), premiumscan be paid.

3. Payment through service providers like mponline, aponline, suvidha

4. THROUGH ATMs OF CORPORATION BANK & AXISBANK. ( Regn. to be made thru websitesofBanks)

5. THROUGH SMS -- Only for customers of Corporation Bank through the ATMs of CorporationBank. Unique PIN will be allotted. Debit Card & Mobile Number is a must.

6. SENIORBUSINESSASSOCIATESOF LIC & EMPOWERED AGENTS


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CRM INITIATIVES -- I V R S

4. INTEGRATED VOICE RESPONSE SYSTEMInformation on policy can be obtained through calling 1251 over telephone all

over India.

5. METRO AREA SERVICE HUB ( M A S H )

In Selected Metros in India, MASH has been created to reduce the

workload at Branches in the areas of servicing where Customer

interaction or his physical

presence is not required

.


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CRM INITIATIVES --

MASH

METRO AREA SERVICE HUB

( M A S H )

1. Issue of Premium payment Notices

2. Issue of Default & Lapse Notices3. ULIP statements

4. Special RevivalCampaign Notices

5. SSSStatus Reports (Yearly)

6. Payment ofSBdues up to Rs.2 lacs

(subject to certain conditons.)

In Chennai MASH was inaugurated on 7th

Sep.2009.


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CRM INITIATIVES --

CUSTOMER PORTAL

6. CUSTOMER PORTAL

Any Policyholder having access to Internet canavail the services available in our Customer Portal.

They can get information on:

1. Status of their policies

2. Revival & Loan quotations

3. Payment of Premiums (through select Banks)

4. Can send E-Mail to LIC for any feed-back/complaint

5. Can make a change of their address (only if theenrolled policy is validated by the servicing Branch)


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CRM INITIATIVES --

RELATIONSHIP RENEWAL PROGRAMMES

7. RELATIONSHIP RENEWAL PROGRAMME

This is an initiative taken by our LIC to ensure

that our valuable customers are retained with us, particularlyin this competitive times.

In Relationship Renewal Programme of 2009 (RRP 2009) thefollowing criteria was adopted by LIC to establish contactwith the customers.


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CRM INITIATIVES --

RELATIONSHIP RENEWAL PROGRAMMES

RELATIONSHIP RENEWAL PROGRAMME

1. Policyholders in the age group of 30 to 40 yrs.

2. Their policies maturing in the year 2009-10.

As this group of customers are in prime age group and would be going out of ourbooks, they may need to be insured afresh and also may need retirement planning.

The ultimate aim is to reestablish our relationship with them and retain them with us.

This gives an opportunity to re-sell.RRP I ( policyholders without agents to serve)

RRP 2 ( Customers insured by parents when they were MINORS)


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CRM INITIATIVES --

GOLD CLUB CUSTOMERS

8. CUSTOMERLOYALTY PROGRAMME ( GOLD CLUB )

This is a concept of offering some specialised and differentiatedservices to our Loyal Customers fulfilling certain norms for admissibility to this Gold Club.

This was initially launched in 6 centres, viz.,

Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Pune.

Now this is being extended to other divisional centres also.

The criteria to become a Gold Club Customer for 2009 was:

1. Customer having atleast 5 policies in force as on01.04.2009

2. paying at least Rs.25000/- as premium annually


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CRM INITIATIVES --

GOLD CLUB CUSTOMERS

CUSTOMER LOYALTY PROGRAMME ( GOLD CLUB )

3. Having at least one policy 7 years old, i.e., with DOC prior to 01.04.2002

OR

Customers having Jeevan Aastha policy for single premium of Rs.5 lacs

miminum.

CUSTOMER LOYALTY PROGRAMME ( GOLD CLUB )

Proposed differentiated Services for these Customers:

1. contacting them before maturity of policies

2.contacting the customers when premiums are in default.

3.wishing them on their birthday.

4.sending SMS alerts on product launch (by C.O.)

5.attending their queries and help in resolving their grievances

6.any other services as decided by C.O. in future.


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CRM INITIATIVES --

CUSTOMER ZONE ( C ZEE)

9. CUSTOMER ZONE ( C Zee)

This has been brought out as a relationship management structure to offer one-stop resolution for all the needs of customer.

It will cater to the needs of phone-in customers, walk-in customers and prioritycustomers (GoldClub Customers).

Initially set up in all the 8 Zonal Headquarters. During the current year it will beopened in26 new centres.

Simple services like change of address, issue of premium paid certificates, loan andrevival quotations and other services as decided from C.O. from time to time will beprovided these

C Zee.

The motto ofC Zee is WE CARE

It aims at providing one-stop resolution point for the customer and owning the

customer and not the transaction alone.


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CRM INITIATIVES --

MORE FROM LIC

10. DATA BASE & DATA MINING

By utilizing the vast data of customers available with us,LIC has launched the above Relationship Renewal andGold Club programmes for enhanced quality service toour esteemed policyholders.

Already, we have also started issuing a Single PremiumNotice for multiple policies of the same policyholderfalling due in a particular month.


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CRM INITIATIVES --

MORE FROM LIC

Operation ofSINGLE WINDOW SYSTEM

of Servicing in Branches and formation of Help

Desk are also a step in the offering of qualityservice.

CLAIMS RECYCLING aims at retention of our

Customers


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IT - INITIATIVES --

LIC is the one of the first organisations in introducing InformationTechnology

Adrema, Powers, UNIX Environment, COBOL Programming and

FEAP (Front End Application Package)

All the Branches and Satellite Offices are connected by Wide AreaNet Work


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IT Initiatives --

EDMS PROJECT

ENTERPRISE DOCUMENT

MANAGEMENT SYSTEM

Already 26.51 crores dockets have been scanned.

Once this is fully completed and operationalised, ourpolicyholders will be able to get policy service from any ofour branch offices in the country.


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CSR (Corporates Social

Responsibility) For weaker sections:

Janashree Bima Yojana , Shiksha Sahayog

Yojana , Aam Aadmi Bima Yojana


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LICGolden Jubilee Scholarship

Scheme 2009

Scholarship: Rs.1,00,000/- per year for

Graduation/Professional Course

10 students from weaker section per DO


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DARE TO DREAM ....

.... AND ACT TO ACHIEVE

THEME OF LIC FOR THE YEAR

2010-11


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BUSINESS IS LIKE A GAME OF

TENNIS; THE ONE WHO SERVES

WELL ALWAYS WINS.


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marketing management of financial mc

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