The title of this blog is based on a slogan I heard long ago while working for GE Countrywide. Essentially, it is a strategy for customer management. I will explain this in the following paragraphs.
In the retail banking space, one of the key challenges is how to identify customers. Products can only be successful if it addresses the needs of customers and are designed with the customer in mind. It is, therefore, essential to identify our target customers and their needs. We must remember here that we are not talking about 'a' customer but about segments of like minded customers. The find part of the title is all about how to identify customer segments.
This can be done in a variety of ways. The easiest of these is to look at competition and what they are doing and whom they are focused on. There is no need to 're-invent the wheel' in a mature market. However, by doing this, a bank is only successful in taking away share from competition with better offerings. Sometimes, one can discover flaws in the competitors products and improve on them.
The other approach would be to do a market research to identify possible segments. Market research can be a costly affair and time consuming and, with changing needs of the customer, may also not be the best method. Most of the time, the best method would be to 'hear' the voice of the customers through formal / informal feedback and move accordingly. Most effective organisations extensively use the method of making 'test' offerings and closely analysing the results.
Once the activity of finding customers has progressed, the task of winning the customer is upon us. There are many imperatives for this. I will try to capture them in the form of bullet points below:
1. Solid brand image built through past performance and not merely 'brand ambassadors' or marketing efforts
2. Well designed product meeting customer needs
3. Smooth and speedy processing of transactions
4. Convenience and reach through multiple channels
5. Simple documentation
6. Effective methods of reaching out to target customers
7. Motivated and passionate sales team
Winning customers is not easy especially when there are so many banks offering similar products. More often, the banks with an effective sales team and sales management process wins the battle. More on this in a future blog.
The costs of winning / acquiring customers is usually high. This can best be offset by putting efforts on retaining the customer. Also, when one retains a customer, it provides opportunities to increase income by cross-selling or up-selling more products to the customer. This where the 'keep' part of the title plays a role. Most organisations fail in this crucial area.
In order to retain the customer, banks have to make sure that the customers is delighted with its services. This includes things like speedy processing, transparent dealings, value for money, convenience, complaint redressal and tracking etc. This is also about understanding the need of the customer through regular communication and also about anticipating the customer's changing needs. An effective team with its 'ears to the ground' and focus on customer can make this happen.
There is a need to constantly monitor attrition levels and have triggers based on this. Tracking of customer longevity and share of wallet is also important. Every customer attrition, whether natural or voluntary, whould be treated with concern and attempts must be made to retain the customer. A useful method would be to have an exit interview with attriting customers to understand the causes. A bank which is sincere with the customer and has an empowered front desk stands a better chance of retaining customers than others without these.
Find, Win & Keep Customers is a simple and effective slogan capturing the essence of customer management.
I would love to hear your views on this blog. Please feel free to leave a comment on the blog or send me a mail at vish.sesh@gmail.com and I will quickly respond.
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I suppose Find, Win and Keep customers can be summarized in just 3 words. "Quality customer service". This is where most organizations fail.
ReplyDeleteFinding the customer (i.e segmenting the market) is a task managed by Senior Management –which is usually the talent – (Assets) segment of the organization :
Winning the customer : Apart from the above listed factors it could be due to :
1)Customer is new to such products and if you hold a very good brand image he might be fascinated to use your products
But the most toughest part is to "Keep the customer". Maintain customer delight each time he visits the branch. This can be done only through excellent customer service since it is a winning edge against competitors.
Sir !!! All the factors listed by you do play an important role in keeping the customer. But since this is usually taken care by the lower staff… they should be trained enough to take care of below mentioned factors / questions:
1)What value addition can I do for the customer : When you give your customer more than they ask for, that's value -- and value is hard to walk away from.
2)Is he delighted with the services offered to him today. : Customers are impressed by organizations that go beyond the obvious and safe ways of conducting business.
3)Keep in Touch with the customer : When all else fails, communication might be all you have to offer your customer. But that offering is a service, and for your customer, that service is as good as a product.
"After-sales service strategy should be an integral part of the organizations quest for the highest standard of excellence. Every inspired action should form a benchmark for future improvements in service to customers".