1. Professor of Marketing
Customer Value Management: Trends & Challenges in the Greek Retail Banking Industry  
George G. Panigyrakis
Professor of Marketing
The Athens University of Economics May 24, 2005
Copyright © 2005 Carreker Corporation. All Rights Reserved.

2. The Changing Customer in Retail Banking
Has limited time
Quests for quality
Is easily attracted by competitors
Wants personalized service
Does not find important differences among products/services
Has high expectations
Has various sources of information and can compare
Has a need for convenience and speed whenever - wherever

3. The future is unpredictable
Surprises Management
Low
Frequency
Prediction
High
Yesterday
Today
Tomorrow
Stability
Change
Surprise
The future is unpredictable
Time

4. Create a LEARNING ORGANISATION
“About Life. About You.”
Client Information
Know the client better than anyone
Flexible Product Line
Provide what the client needs
Create a LEARNING ORGANISATION
Distribution
Management
Offer the client preferred channels
Consistent Service
Help the client achieve goals

5. Client Data warehouse Teller Transactions ATM Transactions PC Banking
Products
Psychographics
Demographics
Interactions
Measures
Teller Transactions
ATM Transactions
PC Banking
Loans
Deposits
Investments
Name
Occupation
Head of Household
Buying Preferences
Financial Segments
Lifestyle Groups
Balances
Fees
Profitability
Marketing Campaigns
Customer Calls
Mailer Responses

6. The Truth!
The major part of the banks’ profits are generated by a small percentage of their customers
10% of the customers generate 75% of the profits !
20% of the customers generate 98% of the profits !
47% of the customers are unprofitable
Top 10% of customers
Bottom 10% of customers
Distribution of customers (% percentage), based on the generated profit / loss
(Source: “Tomorrows Leading Retail banks” – PricewaterhouseCoopers)

7. The Critical Questions :
The optimal value proposition for the appropriate market segment, through the appropriate channel A real multichannel bank

8. The Challenge
Increasing customer value and satisfaction while simultaneously lowering costs

9. WHAT IS CVM? C
USTOMER V
ALUE M
ANAGEMENT

10. WHAT IS CVM?
CVM is not a technology, it is about creating a positive customer experience across every single interaction with a bank.

11. The Strength of the Chain
If we compare the service channels of a Bank with the links of a chain…
Its strength can NEVER surpass the strength of the chain’s weakest link !

12. CRM CVM
CRM C V M

13. The key to attracting, satisfying, and retaining customers.
The “Value” of Customer Value
The key to attracting, satisfying, and retaining customers.

14. VALUE = benefits / costs
Banks can revolutionize by creating a different value proposition.
Low High
Costs
Area of Sustainable Value
Low High
Benefits

15. Employee Agent Customer in Center Customer
CVM “Customer in Centre” Organization Structure
Corporate Objectives
Resources
Process
Customer
Agent
Employee
Management
Government
Regulations
CUSTOMER IN CENTER!

16. CUSTOMER VALUE CYCLE 1 6 2 5 3 4 Understanding Customer Value
Sustain Customer Value
Selecting Customer Value 5 3
Delivering Customer Value
Creating Customer Value 4
Organising Customer Value

17. VS Satisfaction Value Current Service The Entire Customer Relationship
Lag Indicator
Lead Indicator VS
Company Performance
Company Vs. Competition
Tenuous Link to Business Performance
Proven Relationship to Business Performance

18. Although customer value creation is critical, it is not the only element of value creation. Can the following be balanced/integrated?
Serving customers?
Making a profit?
Increasing shareholder wealth?
Good environment for employees?

19. Where’s the Value? Customer’s willingness to buy Customer Value
Price of product/service
Shareholder
Value
Value Creation
Cost of product/service
Employee
Value
Employee’s opportunity cost

20. Culture & Personnel Added Value
It all depends on people: a consistent quality of service and performance
Proven methods of recruitment, training and individual Performance Monitoring
Strong career development to decrease turnover
Dedicated project teams representing all areas of expertise to prepare the client’s solution
Client and knowledge management. Customer centric perception.
Every member of the organization is a marketer.

21. Two types of organizations
Source Nova Bank

22. Marketing Strategy Basics
Create a LEARNING ORGANISATION

23. Marketing Strategy Basics
Heightened market orientation and a focus on creating superior customer satisfaction
Create a LEARNING ORGANISATION

24. Marketing Strategy Basics
Heightened market orientation and a focus on creating superior customer satisfaction
Create a LEARNING ORGANISATION
Positioning built on exploiting marketing resources, assets and capabilities

25. Create a LEARNING ORGANISATION
CVM Strategy Basics
Rethink the role of marketing in the organisation
Heightened market orientation and a focus on creating superior customer satisfaction
Create a LEARNING ORGANISATION
Positioning built on exploiting marketing resources, assets and capabilities
Establish close
relationships with
key customers and groups

26. “Virtual Corporation”
Ideal Corporation
“Virtual Corporation”
“Is a corporation without boundaries with penetrable and constantly changing intermediate communication systems (interfaces) which link the corporation with the external environment”

27. Experiences “Moment of Truth”
Each and every customer contact represents a
“Moment of Truth”
Giving a chance for expectations to be exceeded, satisfied or disappointed
This applies independently of the type of contact
(face to face, written, by telephone, or via the internet)

28. …we can only succeed through our client’s success !
Don’t Forget
…we can only succeed through our client’s success !