So, which flavor of vanilla would you like? Product and Service differentiation has haunted bankers since the introduction of the second checking account. Is it possible to stand above the crowd? Has the market matured to a point where differentiation is no longer attainable? Has our desire to differentiate ourselves outpaced our ability to do so? Banks have made significant investments in capturing and analyzing critical data in order to gain insight into customer needs – all in hopes of creating offerings that shine above the competition. Even with all this additional information, mass customization in the retail sector continues to be an elusive goal. Offering unique, relevant products and services, at point of sale, to retail and/or commercial relationships is possible. Difficult, but possible. Given the right tools, the commitment, the right vision; and differentiation is possible. You can leverage the investments you have made in collecting customer information and create relevant, customized offerings to specific market segments. Relationship pricing and billing allows you to reflect the value of your customers. Attributing fees and benefits across a dynamic hierarchy allows you to demonstrate just how much you value your customers. Embracing the ability to recognize groups, households and individuals differently based on region, office, product and behavior is challenging, but achievable.
Want to try another flavor? <Go to Revenue Enhancement Solution>
Technology limitations have stifled product and service innovation The Tin Man got a heart and the Scarecrow got a brain, why can’t I get a pricing schedule changed? Dealing with the Wizard of Oz can be challenging. Not sure what lurks behind the curtain? Frustrated with the time it takes to enable change that could have a material impact on revenue growth? Don’t blame the Wizard; odds are the kingdom was built before he/she got there. Let’s face it; technology limitations and legacy systems have stifled product innovation in the banking world. Our industry has created large, complex technical environments that are well suited for large scale transaction processing and recordkeeping. Key functions and capabilities have been embedded into these core environments to accommodate processing efficiencies, at the sacrifice of market responsiveness and product innovation. The explosive growth of massive data warehouses and data marts highlights our insatiable need to liberate information to improve our ability to respond to changing customer demands. This explosion in data has in turn spawned a growing list of tools designed to slice, dice, relate and analyze critical data so we can be more innovative in our response to new demands. Additionally, evolution in architecture (SOA) has allowed us to rethink how we innovate. The pieces are available. Why tolerate product delays due to legacy system development requirements? We all know this can have a direct impact to the bottom line and impede our ability to effectively compete with banks that are more agile in adapting to customer requirements.
Ready to look behind the curtain? <Go to Revenue Enhancement Solution>
Understanding the impact (profitability) of introducing new products is often a guessing game. How well have you established the expected results from a newly developed product bundle? Best guess? Hope and pray? The power of performing simulation prior to adding a new offering to your product catalog can mean the difference between successful adoption (revenue growth) and wasted capital. Product Managers are vastly more effective if they have the tools and capabilities to simulate the launch of a product bundle against real historical data prior to committing the product bundle to market. Evaluating results, modifying rules, conditions and policies – until you get it right – is essential to successful product launch.
Interested in the power of simulation? <Go to Revenue Enhancement Solution>
Is that a hole in the bottom of the bucket? Most revenue tracking and monitoring activities do not present the real picture. No matter how impressive the negotiation and deal structure, failure to track and properly account for fee revenue tarnishes reputations and hurts the bottom line. Understanding and identifying revenue leakage can have a material impact on product profitability and lead to insight regarding relationship manager performance. Are you earning fee revenue at the level projected for the product set? Do you know where and why concessions are made in order to close a deal? Can you tell which product, branch, region, office or relationship manager is contributing to profitability? Which are not?
Ready to plug the hole? <Go to Revenue Enhancement Solution>
We appreciate the business…How well do you reward your customers for their loyalty? What can we do to engender greater loyalty? Creating and maintaining strong customer loyalty in a market segment defined by commoditization is hugely challenging. But creating a currency to recognize and reward customer loyalty has great long term benefit. This is hard to do given the fickle nature of many consumers. Some chase rates, others avoid fees and many are simply impassionate about their relationship with the bank. An effective loyalty program can provide the “stickiness” many institutions long for; however, the demands are high. Neighboring industries have set a high bar. Credit card and travel industries have established and influenced consumer expectations for loyalty and reward programs. So why try to outpace them? Why not leverage them instead?
Are you committed to loyalty? <Go to Revenue Enhancement Solution>
|
