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Digital Sales – Enhancing existingcustomer relationships

Insight report on digital sales techniques across differentchannels (internet, mobile and tablet banking)

April 2013

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Report structure:A.Executive summaryB.IntroductionC. Brands featured1. Market statistics, news and consumer data2. Existing sales techniques

2.1 Internet banking2.2 Mobile banking2.3 Tablet banking

3. Cross channel integration4. Case study5. Blueprint for successD. Conclusion

Methodology:The research approach taken provides an objective response to the question of what is the idealsales strategy to take across different digital channels to enhance existing customer relationships.In compiling this report we have drawn on market and industry news, related reports recentlyproduced by Mapa Research as well examples in the market. The report comprises 85 pages.

See the very latest in digital salestechniques from around the world

Objective:The objectives of the research were to:

• Identify current digital sales techniques andapproaches used by banks to enhance existingcustomer relationships• Highlight key trends and possible areas offuture development• Consider market innovation and leadingsolutions offered by financial institutions

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Findings

• Different digital sales techniques are used within internetbanking by different providers to enhance existing customerrelationships.

• There remains a lack of personalised product offerings withinall three channels (e.g. internet, mobile and tablet banking)

• The report also reveals that similar digital sales techniques areused within mobile banking as internet banking.

• Sales messages are not often displayed within tablet bankingbut sales conversion techniques seen in other channels arevisible. It seems the tablet channel is not yet fully developed asa functional sales channel.

• While similar digital sales techniques are used across differentchannels there remains a lack of integration.

• A single overriding strategy that considers all three channels(e.g. internet banking, mobile and tablet banking) shouldalways be favoured.

Blueprint for success

1) Personalise offerings that are useful and engaging tocustomers creating greater commitment between thecustomer and the sales process.

2) Think about social media as part of a digital sales strategy.3) A relevant sales experience should meet the content and

functionality needs of the consumer.4) Exploit cross channel integration.5) The evolution of digital channels provides banks with the

opportunity to not just sell existing services but to look toinnovate.

ObjectivesThe objectives of the research were to:

• Identify current digital sales techniques and approachesused by banks to enhance existing customer relationships• Highlight key trends and possible areas of futuredevelopment• Consider market innovation and leading solutions offeredby financial institutions

OutputThis report will allow banks to:

• Evaluate their digital sales strategy across differentchannels (e.g. internet, mobile and tablet banking)• Make comparisons with best-of-breed examples• Develop a multi-channel sales strategy that fits within theirwider strategic objectives.

The research approach taken provides an objectiveresponse to the question of what is the ideal sales strategy totake across different digital channels to enhance existingcustomer relationships.

Executive summaryA Sample page from report

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Internet bankingSummary of key findings from a sales strategy and customer relationship perspective:

2.1

Facilitating the sales process• Demonstrating the advantages of services and facilitating the

stages the customer goes through within the sales journeyare important features of a successful cross channel salesstrategy. This is ably demonstrated by Monabanq.

• Lloyds TSB offers just such a capability while providing asimpler activation of the product if accessed through theghost account itself. The use of pre-filled forms is also acommon technique to facilitate the sales process.

• Mimicking a retail experience is another route to facilitate thesales process by providing familiarity. La Caixa provides ashopping cart allowing customers browse products while BNPParibas adds icons denoting various financial productcategories that emulate the retail experience one might see inan online supermarket.

Customisation of content and product delivery• Customer customisation of sales strategy is the ultimate aim

in any sales proposition as it makes customers themselvesselect the services they want to be sold. Being the ultimateideal of any marketing strategy it is notoriously difficult toachieve. A number of banks have developed customisation intheir internet sales propositions. Within internet banking NABcustomers can choose to display offers that are only relevantto them. Belfius for example offers differing themes thatinclude work, children and living. These themes define thetype of product pitched to its customers. Barclays takes this tothe next level by enabling customers to customise theirproducts. The benefit of customisation is obvious for banksbut less clear for customers. Their remains little incentive forcustomers to provide such targeted sales information.

Relevant personalisation• Personalisation within the sales process is core to successful

conversion of existing customers to up-sell or cross sellopportunities. Relevance is key both in targeting customersand tailoring offerings to customer demand. Nationwidesuccessfully leverage this attribute while providing astreamlined process to complete any personalised salesofferings but balance is a key factor. Being too obtrusive risksinterruption of normal digital banking activities like moneytransfers.

• Bank of America brings relevance by taking the well testedmethod of customer loyalty rewards and combiningpersonalisation; customers can select those places they wishto receive loyalty points from using e.g. a favouriterestaurant. This innovation is taken a stage further by CitiBank who allow loyalty points to be shared bring a socialmedia angle with Facebook points sharing.

Tailored support in the sales journey• Providing support at the key moment within a sales journey

can make the difference between a successfully convertedsales proposition and a churned customer.

• Citibank provides assistant prompts at key points in the salesjourney with statements like “can I assist you in choosing theright account.” Natwest approaches the ideal proposition inproviding direct access to customer support as users look tobe leaving the sales journey. As a potential customer attemptsto click out of an application, possibly in frustration, the website provides a clickable link for direct contact with an advisorto help complete the journey.

Sample page from report

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Nationwide (UK) were promoting a personalised credit card offer via their interstitial login page. Personalised offers create apositive customer experience, as customers feel the promotion is relevant and tailored to their specific needs. Note customers canchoose whether or not to would like to be reminded of this offer next time they login. Customers are instantly redirected to theproduct application page within internet banking. Also customers are given a code in order to receive their personal offer. Continueson the next page.

Internet banking: Interstitial login page2.1

A product promotion via interstitial login page could hinder customersfrom their initial reason to login to internet banking i.e wanting to make atransfer. Consequently, could the option be offered for customers toremind them upon log-out?

Sample page from report

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American Express (USA) launched a mobile offer engine to boost customer spending. This service recommends merchant offers tocard members based on their spending history and location. Offers added to the card, savings made and expired coupons aredisplayed within the app. To redeem an offer, users need to add the offer to an eligible American Express Card. The service is beingpiloted in Los Angeles and New York City. American Express rolled out similar spending programmes linked to Facebook, Twitterand Foursquare.

Offers displayed based on priorspending history and location

Savings made and expiredcoupons are also displayed

Membership rewards

2.2 Mobile banking: Personalised offers Sample page from report

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Société Générale (FR) uses expandable product offerings on their landing page before login. Customers click on the arrow at thebottom of the screen, and are shown a promotion. This feature engages customers and as a result attracts attention to differentproduct offerings.

Special offers at the moment tab pops-up

2.3 Tablet banking: Interstitial login page Sample page from report

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Eligible products include: Kindle Fire HD tablet,an Xbox console package, Sony cameras,jewellery and discounted American Expressgift cards

Cross channel integration (Cont’d)3

American Express and Twitter (US) have unveiled a new program to boost spending allowing existing customers to “pay-by-tweet.”In April 2012 allowing card members to sign up for merchant deals through Twitter. With this function American Express customerscan purchase a number of products by sending a short message via the social media site. The user must link their Twitter andAmerican Express accounts and complete a purchase by entering a hash tag with the offer promoted by the merchant. In addition,customers must tweet their confirmation to American Express.

Sample page from report

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Commonwealth Bank offers personalised as well as pre-approved offers within internet banking. Shown below on the right - the ‘offers’landing page. Shown on the left - within credit card product applications customers are informed if they have been conditionally approvedfor a credit card. In addition an online exclusive offer is being promoted for all new credit cards.

Offers page - N.B. all the sales messages received within the secureinbox are filtered and displayed within the ‘offers’ section.

4 Case study: Commonwealth Bank – integrated personalisation

Credit card product information pages – including an online exclusiveoffer of $50 cash back on all new credit cards.

Sample page from report

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The best way to get in touch:Edward Chatham, Managing Directoredward@maparesearch.com +44 (0)20 7727 3130Ruth Janssen, Authorruth@maparesearch.com +44 (0)20 7727 3130