Case Study and Sample Slides Best Practices in Customer on-boarding Strategy for a leading Islamic Bank
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Best Practices in Customer on-boarding Strategy for a leading Islamic Bank Client • The client is a leading Islamic Bank based in Saudi Arabia with total assets of US$ 59 bn, a network of over 500 branches and the largest customer base in the Kingdom
Project Scope • SGS was appointed as a consultant to design a successful On-boarding program for the Client Bank in order to increase activation rate, minimize customer attrition during the initial six months, enhance customer experience, increase cross sell opportunity , encourage increased customer spending and enhance profitability
Sutherland’s Solution • Identified key challenges for On-boarding program and designed an exhaustive Research Methodology for improved Customer Experience • Designed a customer-specific data-driven on-boarding communication strategy • Articulated the role of the Relationship Manager and Account manager in accordance with the successful implementation of the Onboarding program • Exhaustive Impact Analysis of the ‘Welcome Kit’ sent out by the Client and suggestions to improve the same
• Benefits to the Client • • • •
Enhanced quality of Customer Experience Increased customer loyalty Identified redundant expenditures thereby optimizing customer retention costs A well-researched, thoughtful and articulate communication approach facilitated the Client Bank in enhancing its Brand Image
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Research Methodology Study Objective • To study the best practices for the Customer on-boarding process for Current accounts' being followed by leading global banks
Methodology • Study the different stages of customer lifecycle with specific focus on the on-boarding process • Conduct secondary research to understand the practice being followed by global banks for the current account product • Further, conduct primary research with senior executives including head of operations, head of customer service, relationship manager to understand the on-the–ground process and impact on customer profitability • Compare, evaluate the pros and cons of each actions and suggest best mix of practices
Process Chart Data Consolidation
• Compare various options to
Data Accumulation
• Consolidate findings from Prepare discussion guide Study of published data on on-boarding
• Scan websites of banks, industry associations, innovation and best practices forums, banking products/ service awards etc. to gather best practices in the onboarding lifecycle stage
• Hold discussions with • Identify different steps and their key objectives • Prepare a discussion guide to solicit detailed information for each step including touch-point details, channel, timeline, objective & multiple scenarios
senior executive from banks to gather the required details • Probe further to understand the reasoning of each step and its impact on the customer
Arrive at the best practice
secondary and primary research to arrive at the practices being followed across banks • Review the collaterals to further strengthen our process understanding • Revert to the participants for further clarifications, if required
evaluate the most appropriate strategy • Define the steps, timelines, rationale, channel of communication and role of the person involved • Design the process flow chart including the customer profile forms, feedback scripts
Source: SGS Research
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Activities and Touch points… Activities Day
Account Opening
1 Day
Welcome SMS
2 Day
Welcome Email
5 Day
Dispatch of Welcome kit
10 Day
11
SMS Confirmation for kit dispatch
Touch Points
• •
Re-emphasize the benefits of the CA product DO NOT CROSS-SELL any other product at this stage
•
Branch executive/ sales executive
• •
Makes the customer feel valued Has the customer contact number handy
• •
Technology Customer support center
• • •
Validates the e-mail id Allocation of a name thereby appointing a single point of contact Gains customer’s confidence
• •
Technology Reference of Acc Managers & Relationship managers
•
Provide complete details of the product being opted and related services e.g. internet banking, bill payment, salary transfer etc.
•
Customer support center
•
Customer realizes that the bank is professional and provides update on any significant development
• •
Technology Customer Support center
Robust on-boarding platform geared to address strategic and tactical challenges (Ex; HSBC uses Goldtier, Citibank used Microsoft’s FAST) Source: SGS Research
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Strategies adopted by banks during the on-boarding period
Customer lifecycle for ‘Customer Delight’
Mass Customer
Send a congratulatory SMS on significant events such as birthday, marriage anniversary etc.
Send email updates/newsletters on stock market, commodities, housing market etc. on e-mails
Premium Customer
Send a congratulatory SMS on significant events such as birthday, marriage anniversary etc. along with a gift voucher
Send email updates/newsletters on stock market, commodities housing market etc. on e-mails
Strategies to create ‘Customer Delight’
•
The gift voucher needs to be in accordance with the customer preference gathered during the lifestyle forms filled up during the meeting with relationship manager
•
Personalized advice for the customer to be send across incase any major activity is foreseen in the stock market, commodities market etc. based on customer preference
Invite for relevant concerts and seminars can be send across
•
Personalized invites depending on customer preference (Ex: music concert)
Source: SGS Research
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Welcome Email (day 5)
Dear Customer, Thank you for choosing XYZ Bank. We consider it a privilege to welcome you to the XYZ family. Starting today, you are in the company of one of nation’s leading financial groups, offering diverse financial solutions that encompass every sphere of life. The Corporate Salary Account from XYZ Bank comprises a bouquet of savings account, investment account and an optional reimbursement account. Key message for activation
You can also have our Account Activation Officer visit you, to take you through the Account, Net Banking & Bill Pay Features
You are also eligible for Online Trading Account from XYZ Securities and Home Loan from XYZ Home Finance / Personal Loan from the Bank and Car loan from XYZ Ltd, at competitive rates. To avail of these services, please contact your Account Manager –Mr. ABC on mobile: @@@ or mail at abc@xyz.com For any service related queries and clarification you can write to salaryhelpdesk@xyz.com
Escalation Level
Customer gets the feel of other product s
Infuse confidence into the customer that the bank has well-defined escalation matrix is in place hence, would offer prompt services
Escalation Level
TAT (in working days)
Name of Person
Email ID
I
0-5 days
Mr. ABC
Abc@xyz.com
II
6-10days
Mr. XYZ
xyz@xyz.com
III
11-15days
Mr. 123
124@xyz.com
Assuring you of our best services at all times, we look forward to a long and mutually beneficial relationship. Thanks & Regards, ABC Service Officer Corporate Salary Source: SGS Research
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Summary • The analysis reflects that the impact of Welcome Kit is positive in terms of impact on certain key metrics • However, certain attributes like Balance maintained and Internet Banking usage do not reflect positively in terms of impact of Welcome Kit • Although, the demographic trend in sample selected is uniform, bias in sample selection cannot be ruled out • The ideal scenario would be to replicate the population selection criterion on the ‘Non Welcome Kit’ group customers • In order to enable the above, ‘Income’ as an attribute is very critical and needs to be captured in the system going forward
Source: SGS Research
© 2012 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com January 14, 2013
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