Talent Programme 11.01.2012

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Pro-activity and a stronger focus on the right customer service are key elements in Sampo Bank

positioningPRO-ACTIVE

Active and easy to reach in all channels

PRODUCT-ORIENTEDProducts for everybody

RE-ACTIVETraditional big bank attitude

SOLUTION-ORIENTEDSolutions for customers with most potential

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Agenda

1. Development of banking – what drives customer centricity?2. Fees and prices up – costs down – recipe for customer centricity?3. Multichannel sales – can we offer value and yet earn money?• What tools are needed to run professional MCS• What skills are required to run successful MCS• Case: more revenues with less costs

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1. Development of banking – what drives customer centricity?

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Development of banking – what drives customer centricity? – Case Sampo BankDevelopment phases I-III From bank driven cost cutting self service approach to....

customer & bank driven two way multichannel communication & sales

PHASE I(1991 – 2000)

PHASE II(2001-2010)

PHASE III(2011 )

Bank & Cost driven... - Cost cutting/efficiency- Customers from Branch to Web- Self service technology

Bank & Product driven...- Activity (meetings & simple sales) - Outbound multichannel approach- Self-service enablers

Customer & Bank driven...- Service concepts focus on preferred

target groups - Activity & cross sales- Two way communication & new channels - Digital sales and optimisation- Personalisation

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Development of banking – what drives customer centricity?

• External environment

• Own performance

->In most cases bank driven, not customer driven->Parity with satisfaction and profitability

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2. Fees and prices up – costs down!

• Easy, but how do we attract and charm good customers at the same time

->One step ahead – two steps backwards!

->Banks are an obvious target for aggrevation

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3. Multichannel Sales – can we offer value and yet earn money?

• Tools• Skills• Case: More revenue with less costs!

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Multi-channel customer contacting – value chain“system is as good as any individual area”

Source data

Source data

Source data

Source data

Group Data

warehouse (EDW)

Multichannel Tool

Activity engine Score models Target group

selection Automated lead

generation Channel

optimisationData Mart

Automated channel interfaces

Branch

eBanking

Contact Center

Mailings

Business Online

eMail/SMS

Homepage

Portal/inbound

Mass Media and sponsorship +

Response / behaviour data

Data: internal & external

Customer analytics and campaign management

Channel functionality

Customer’s process

Defines targeting possibilities for customers and non-customers; data

quality, access to internal & external data crucial

Enables systematic management of customer contacts within MCT’s

scope; core coordination function in customer contact activity

Choice of channel mix based on efficiency and customer preference;

ideally integrated production & distribution (e.g. straight-through

process in eBank)

Determines business

relevance from demand side

Long-term Development path of Multi Channel Campaign Management

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For internal use

Business case example using call centreExpected sales funnel

30,00 %

Leads 50 000

100,00 %Leads handled

50 000

60,00 %First contact

30 000

0,00 % Meetings booked

0

0,00 %Sales9 000

Total funnel efficiency: 18,00 %

Not handled 0

No contact 20 000

No meeting 30 000

No sale 0

Channel: Call outbound

9 000

0

Number of products to be sold11 070

Exp. revenues 1st year Total: 1 491 747 €

Per customer: 166 €

Total funnel efficiency: 18,00 %

Sales efficiency: 6,51

Return to standard funnel

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For internal use

Business case example using call centreSales details

Expected number of

sales

Expected revenues in the

first year

Average revenues in the

first year

Total number of clients with a new product 9 000 1 491 747 € 166 €

Total number of new products 11 070 1 491 747 € 135 €

Mortgage - - € - € Consumer credit 4 320 753 488 € 174 € Package 6 750 738 258 € 109 € Savings account - - € - € Pension account - - € - € Mutual fund - - € - € Deepsell Mutual Funds - - € - € Continuous investments - - € - € Custody - - € - € Savings insurance - - € - € Loan risk insurance - - € - €

Channel: Call outbound

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For internal use

Business case example using branchesExpected sales funnel

0,00 %

Leads 50 000

72,00 %Leads handled

36 000

82,00 %First contact

29 520

66,00 % Meetings booked19 483

30,00 %Sales5 845

Total funnel efficiency: 11,69 %

Not handled 14 000

No contact 6 480

No meeting 10 037

No sale 13 638

Channel: Branches outbound

0

5 845

Number of products to be sold7 189

Exp. revenues 1st year Total: 968 800 €

Per customer: 166 €

Total funnel efficiency: 11,69 %

Sales efficiency: 0,67

Return to standard funnel

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For internal use

Business case example using branchesSales details

Expected number of

sales

Expected revenues in the

first year

Average revenues in the

first year

Total number of clients with a new product 5 845 968 800 € 166 €

Total number of new products 7 189 968 800 € 135 €

Mortgage - - € - € Consumer credit 2 806 489 345 € 174 € Package 4 384 479 455 € 109 € Savings account - - € - € Pension account - - € - € Mutual fund - - € - € Deepsell Mutual Funds - - € - € Continuous investments - - € - € Custody - - € - € Savings insurance - - € - € Loan risk insurance - - € - €

Channel: Branches outbound

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For internal use

Appendices

Scoring matrix of the development path enablers