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Illustrative Banking, Mortgage and Cards Assignments
Retail Bank: Bancassurance
Cross-Selling to Existing Customers
of a Retail Bank

For a UK retail bank we established a strategy for cross-selling protection and asset management services to their existing customer bases. This was based firstly on an assessment of the total spend of their current clients and on the banks’ share of this across a wide range of products. We then researched the most promising groups to understand their underlying attitudes to their relationships with the bank and their preferences for sales process, service and communication. (In particular, the client was very interested in the potential role of remote and electronic processes.) We used this information, combined with an analysis of product contribution and acquisition costs, to create a set of new product and service propositions with their associated sales and communications strategies. (ref 384)

Major Retail Bank
Strategy for customer management
and cross selling

Our client had the lowest level of products per customer in the sector and wished rapidly to improve cross-selling performance, but in a manner that would have minimal systems impact. We worked with management to identify the top 20 initiatives from around the organisation that would impact cross selling and developed these as sales and service propositions as a basis for prioritisation based on the scale of immediate revenue impact and minimal IT involvement. Some of these involved system-based triggers to identify emerging needs, but most involved sales and service propositions that could be taken up directly by customer-facing staff. We piloted the most promising propositions in branches and with telesales teams that resulted in typical increases in lead generation, referral and closure rates of up to 25%. (ref 402)

Banking Sub. of a Life Company
New Mortgage Proposition

This innovative firm had developed a sound business as the result of previous innovation, but was suffering from the effects of price-based competition in its core mortgage business. It needed to find a way of building value for itself and clients, since adding more low persistency discount business was value destroying. We worked with the client’s research and finance teams to identify a series of tactics that would increase customer lock on and result in improved persistency. These insights were then used as the basis for five new propositions that were recently launched to target segments of new customers. The intention then is to introduce these propositions to existing customers. (ref 401)

Corporate Bank
Segment-Based Business
Development to Corporates

A well-established Scottish bank asked us to help them to develop a strategy for extending their position in certain segments across traditional banking, transmission, capital markets and custody markets. We carried out in-depth interviews with finance directors and chief executives in thirty companies in their target markets and explored their existing relationships with banks, their purchase processes in place, how they evaluated new banks and their perceptions of our client. We then helped them to strengthen their proposition for each segment. (ref 394)

Major Bank in Private Banking
Strategies for Private Banking
Subsidiaries of a Clearer

We carried out research amongst customers and prospects of three private banking subsidiaries of a clearing bank in order to help them to determine their strategy. This involved in-depth interviews with upscale individuals to understand their financial objectives and their attitudes towards wealth, service and the various brands available within the group. We then assisted the client in defining distinct strategies for each business, which involved a blend of new customer propositions and enhanced customer management tactics. (ref 358)

Leading Mortgage Lender
New Strategy for Mortgage Back book Retention

This major mortgage lender was experiencing significant levels of churn in its mortgage book as the result of previous years’ 2 yr discounted deals, and recent activity on the part of mortgage brokers and other intermediaries. We worked with the client team, and a firm of economists to understand the drivers of profitability in the back book, and carried out research to understand the factors that influences churn. One of the key issues was that the client had fallen into the habit of treating rate as the only variable, thereby commoditising their own offering. We then developed a programme of action involving new propositions, some involving hybrid products, enhanced service and more frequent communication with customers to enhance the value they experienced in the current service. (ref 400)

Building Society
Levering Mutuality

For a building society committed to mutuality we worked with senior management to understand the options open to them to enhance the value derived from their mutual status, and to explore how this could be built into their customer propositions. Hitherto they had emphasized a price-based proposition that we discovered had very little financial impact on the bulk of their voting members. Through a combination of analysis of customer group profitability and attitudinal research with customers, we helped management to define a range of more compelling customer propositions that would be successful in defending against the pressure to demutualise. (ref 375)

UK Stockbroker
Opportunity Identification

For the UK’s largest stockbroker, we carried out a review of their business and its prospects in order to identify opportunities for growth in near and adjacent markets as an input to their own strategic planning process. This involved a detailed understanding of the contribution they made from their services, and how these combined to build a picture of customer profitability. We continued to work with the client on two new propositions: one in margin lending; the other in upscale banking. (ref 356)

Major Charge Card
Growth in Travel Services

For this leading charge card operator we developed a growth strategy for travel management services for the small corporate sector, which involved establishing a clearer focus on the needs of particular segments. This was based on an extensive review of the market and a segmentation of its commercial client base, which was used to develop growth forecasts by segment. (ref 376)

UK Private Bank
Development of Payment Card Business

We advised this Bank on the advantages and disadvantages of issuing debit and credit cards, producing an income and cost model for each card type. We then advised the Bank on the merits of in-house card processing vis-à-vis outsourcing, assisted the bank in the selection of an appropriate outsourcer and advised on all aspects of the contract with the outsourcer. (ref 359)

High Street Retailer
Strategy for Innovative Smart Card Venture

For this well-known retailer we advised on the planning and implementation of a new smart card proposition. After initial research to understand the brand, we advised on strategic partnerships, the customer proposition, regulatory issues and specified the operating structure of this highly innovative card venture. (ref 377)

Major Department Store
Shopping Strategy with Store Card

For an up-market department store, with an unprofitable mail-order operation, we researched and developed an online home shopping concept. This resulted in a near-term strategy of building the brand positioning and increasing store usage. For the future we developed a novel retail concept based on interweaving the use of the store, the internet and remote delivery in conjunction with the store card. (ref 378)

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