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

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CROSS-SEGMENT OFFERING – UTILIZING THE LINK OF BUSINESS AND PERSONAL NEEDS
There is room for improvement in
cross-segment sales resp. service
models as a lot of banks use just
ad-hoc campaigns for this purpose
ANALYSIS OF THE STATUS QUO
The majority of the institutions have at least an ad-hoc (campaign driven) cross-segment
capturing practice and 77% of the interviewed banks do apply these models. Out
of these roughly three quarters, just 15% have a complete and elaborated methodology
and the huge "rest" of 85% uses ad-hoc campaigns (see fig. 25). These actions are
usually linked to one specific product resp. service offer but do not offer a joint service
model for both private and business needs.
Fig. 25: Cross-segment offering practices in CEE banks [%]
Banks not applying
cross-segment sales/service
23
Banks with methodology for
cross-segment sales/service 1)
15
Banks applying
cross-segment offering
77
85
Banks using adhoc
campaigns 1)
1) Out of banks applying cross-segment offering
Source: Roland Berger Strategy Consultants
There is an important link between micro sub-segments and cross-segment offering
because cross-segment target groups can be easily originated from micro sub-segmentation.
For example, banks may use the link between targeted professions and the (usually)
private affluent individuals segment assuming that a lawyer PI client needs a business
account, too. And vice versa, lawyers may be targeted by the banks to gain affluent
PI clients.
Managing both the private and
professional sides of a client relationship
increases the gross income
and can even double it
COVERAGE MODELS AND RECOMMENDATIONS FOR CEE BANKS
Previous European case studies highlighted the following important facts:
> Dual relationship is worth 30% to 100% more than single relationship.
> The proportion of NBI share between the private and the professional side varies
strongly by sub-segment and develops over the life cycles of the business and of the
business owner.
> Marketing strategy and product offer require operational and tactical segmentation.
Based on these three facts, the split of business and private needs of clients shall be
examined considering local market-specific sub-segment specialties. The results can
lead to various important conclusions as to the optimal client coverage model. In the
example of figure 26, "X1" priority means that the client will generate a higher gross
income for the bank on the professional side. Therefore in case of e.g. the triumvirate
coverage model (see fig. 28), the business relationship manager shall play a more
important role. At the same time for "X2" sub-segments, it is worth focusing on the
clients' private needs and serving them rather as private, not as micro clients.