Retail Banking in CEE: Exploiting the Potential of ... - Roland Berger

MICRO STRATEGIES – ELABORATING SEGMENTATION AND SERVICE MODEL 19
Beyond this general ranking, micro sub-segmentation shows some country specifics.
For example in Russia and Ukraine, micro sub-segmentation is not yet applied, while
certain low-ranked segments may have a particular emphasis in selected countries,
such as tourism and HoReCa in Croatia.
Micro segmentation can result in a multitude of sub-segment specific offers.
Service level is the targeted differentiator
while today sub-segment
specific offers mainly utilize product
and price
The commonly used way of targeting are products tailored according to the perceived
sub-segment specialties. As shown in figure 10, the service level is less customized to
the targeted sub-segment although in positioning, it was by far the most important differentiator.
All interviewed bank representatives stated that they did not want to start a
price war. At the same time, their tailor-made products are often provided with highly
attractive conditions.
Segmentation of the heterogeneous micros is in use for three main reasons in most of
the observed banks: for their
1. Different profit and volume potential,
Micros are so heterogeneous that
first the real target groups have to
be selected carefully considering
the bank's specialties
2. Different risk and
3. Potential to differentiate service level (and service cost).