1. MAXIMIZING SALES POTENTIAL IN PRACTICE 23.09.2009, Bucharest Okan YURTSEVER, Retail Banking and Bancassurance Director

2. CROSS SELL What is cross-sell? A sales technique in which the salesperson recognizes what a customer is purchasing and will make suggestions or recommendations of other related product that the customer may also be interested in purchasing. 1

3. CROSS SELL When to cross-sell? Proactive cross-sell –sell more than one product simultaneously when you sell the first product (skilled sales force) Retroactive cross-sell –sell additional products after you sell the first one (in addition to skilled sales force, you need CRM-Customer Relationship Management- approach and tools) 2

4. CROSS SELL How to cross-sell? Proactive cross-sell –sell more than one product simultaneously when you sell the first product (skilled sales force) Choosing right people Training (sales people must know all the range of the bank’s products) Guidelines (tendency matrixes, if the first product is salary card, then offer overdraft or credit card or online banking) Management by objectives (clear targets & follow up, if you sell 10 salary cards at least 2 o/d and 1 credit card and 1 online banking) 3

5. CROSS SELL How to cross-sell? Retroactive cross-sell –sell additional products after you sell the first one (in addition to skilled sales force, you need CRM approach and tools) Strategy & collecting data (X ray your customer for your CRM approach) Well designed banking software (ability to extract data) Well designed CRM tool (data mining) Tendency analysis combined with cross-sell matrix (what is the second, third, fourth product of your existing salary clients? What type of existing clients apply for credit card? etc) Create complimentary products (both for proactive and retroactive x-sell) eg. POS line of credit, preferential rates for salary cards 4

6. CROSS SELL Cross-sell for more income? Generally, one big benefit of cross-sell is disregarded!!! Cross-sell not only generates higher income but also helps making clients more loyal to the bank… life time banking… from university to retirement… 5

7. CROSS SELL - EXAMPLE 20 Clients pay utilities via teller 15 Clients are offered automated utility payment 3 Clients accepted the offer 3 x 22 = 66 More loyal clients per month per branch 66 x 12 months = 792 More loyal clients per year per branch 792 x 50 branches 39.600 More loyal clients per year per bank 6

8. MULTI CHANNEL INTEGRATION What are the most common channels for banks? Direct Channels Branch (Classic, In-store) ATM (Classic, multi functional, cash recycling) Online Banking Call Center Mobile phone banking (Wap) 8

9. MULTI CHANNEL INTEGRATION What are the most common channels for banks? Indirect Channels Third parties (brokers, insurance companies) Web (own site, others) Generating leads via web pages, ATMs, online banking, mobile phones 9

10. MULTI CHANNEL INTEGRATION Why different channels? Customer needs Making the client to be free from limitations (7/24, anywhere) Speed Post modern world facts Cost optimization For the bank For the client Deeper penetration Hook & lock Creating loyalty 10

11. MULTI CHANNEL INTEGRATION How to integrate these channels? Single-unified customer database Retrieving on-line real time data via different channels Accessing data from different channels Channel management approach At least basic needs should be available Customer centric approach (vacation, after office hours) 11

12. OPERATIONAL EFFICIENCY Why? From sales perspective Customer satisfaction (fast and correct transactions, less queues) Opportunities to cross-sell (more time to cross-sell) Better cost & better prices (win-win results) Complaint management (complaint - better services) 12

13. OPERATIONAL EFFICIENCY How to be efficient? Technological enhancement core banking system integration amongst different modules Centralization (or De-Centralization) centralization of operations de-centralization of decisions (clearly identified initiatives) Back office automation 13

14. FAST GROWTH WITH BETTER ALLOCATION OF RESOURCES From sales perspective Cross involvement to sales (tellers, non-sales staff) All the staff in the branch should be involved in the sales process Organizational chart to be structured according to sales model Supportive CRM tools (pop up screens for tellers) Dedicated corners for clients (online banking, call center direct lines) Some clients come for simple needs (acc. balance, acc. history) Better designed branches Lobby management, Queue management Preferred clients, preferred tellers, segmented branches Central marketing activities (tele sales, direct mailing, drop mailing etc.) 14

15. FAST RESPONSIVENESS ON THE MARKET Customer satisfaction (fast and correct transactions, less queues) Decision to buy in 5 minutes, realization in 2 weeks Will the client come again? Opportunities to cross-sell (more time to cross-sell) Customer segmentation Back office segmentation Organizational structure based on customer segmentation Credit evaluation process based on customer segment Scoring From sales perspective 15

16. EXAMPLE - ANALYSIS 100 Clients 50 Debit cards 50 owners 30 users 10 Efficient users ? Sales Efficiency How many clients own this product? How many of them use at least once per month? How many of them use at least per month with a volume more than 1.000 RON? 16

17. EXAMPLE - ACTION How can I increase sales efficiency of debit cards? Sell more cards Fast delivery process Sell more advanced cards Have multifunctional ATMs More number of EFFICIENT DEBIT CARDS, LOYAL CLIENTS, TRANSACTIONS, VOLUMES, INCOME 17

18. Cross-selling Technology and People Multi-channel Distribution Efficiency Focus Highest Quality and Innovative Products and Services Growth through Segmentation GROWTH STRATEGY 19