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I delivered this presentation at the Asia-Pacific Association of Banking Institute held in Kuala Lumpur on 7-8th October, 2013. My topic was Different Volks for Different Flocks. What do we need to do in the financial industry for our customers? I try to draw from the learnings from the Digital world. If you enjoyed the presentation, send me a small note. Suraj
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Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Good Afternoon. My name is SURAJ.
Work: 23 years experience in banking, asset management and insurance.
Job: Last 3 jobs > CEO for Prudential Fund Management in Singapore, Middle East and Malaysia (now called Eastspring)
Education: MBA (Finance), B.Com (Hons), Chartered Wealth Manager (CWM), MFP, CIPM.
Suraj Mishra MBA, B.Com (H), CWM, MFP, CFP 23 Years – Experience Ex-CEO Prudential SG, UAE, MY Author, Winning-the-Wealthy
Day-to-Day Customers: 5 Children, ranging from 24 to 3 years old. Different strokes for Different folks.
What now? Speaker, Author, Trainer and Consultant. Work on what I enjoy.
48 Years
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Different Volks Different Folks
for
1974
5
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
3
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
9
This Volkswagen.
now
26 2013
Unnawears. My husband bought these nerdtron Edison boxers from ‘The Gap’ a few days ago.
I like them. The end.
56
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
CHOICE What do consumer want?
What did the consumer need?
UNDER WEAR
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Traditional Purchase Process Traditionally, there have been three critical junctures within a customer’s purchase process where product must be successful: “stimulus”, “shelf”, “experience”.
Second Moment of Truth
Experience
(Experience) - Once home with the product, the consumer uses it and forms
an opinion of his or her purchase.
First Moment of Truth
At shelf In-store
The consumer, driven by an advertisement or knowledge, visits your office and the combination of product
packaging and salesperson claims, results in a purchase.
Stimulus This is the moment when an
advertisement/knowledge connects with a consumer in such a way that pushes
him or her to visit a start the discussion.
Advertisement
Stimulus Advertisement
First Moment of Truth At shelf In-store
Second Moment of Truth Experience
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Something else happening ….
Second Moment of Truth
Experience
First Moment of Truth
At shelf In-store
Stimulus
Advertisement
?
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Online research forever changed the game Query Volume, January 2008 – January 2012!
Automotive+262%
Real Estate+253%
Travel+211%
Legal Services+233%
Source: Google Internal Data, 2011.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Ad location
TV 58%
Shop/business 57%
Magazines 48%
Posters / Billboards 36%
66%
have performed a mobile search after
seeing an ad
Source: Google and ipsos, “Our Mobile Planet: Understanding the Mobile Consumer, May 2012
Offline ad exposure leads to search
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
So what does all this online research mean to us?
There is a new “Moment of Truth” to consider.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Second Moment of Truth
Experience
First Moment of Truth Stimulus
New Paradigm
At the Bank or Meeting the Relationship Manager
Experience Pre-Shopping / Evaluating Opening the Bank Account
Advertisement or Call or meeting with Relationship
Manager
Zero Moment of Truth Zero Moment of Truth
Stimulus
First Moment of Truth
Second Moment of Truth
TESTIMONIAL
When you were considering purchasing {PRODUCT}, what sources of information did you seek out to help with the decision?
Source of Information (Banking)
40%!36%!
30%!28%! 28%!
61%!59%! 58%!
48%!
36%!
51%!
43%!39%!
31%!
Ad o
n te
levi
sion
Mai
l fro
m B
ank
Read
info
rmat
ion
Emai
l fro
m b
ank
Not
iced
ad
onlin
e
Stimulus 40%!
36%!
30%!28%! 28%!
61%!59%! 58%!
48%!
36%!
51%!
43%!39%!
31%!
ZMOT
Bank
web
site
Sear
ch e
ngin
e
Frie
nds/
fam
ily
Com
paris
on
onlin
e
Revi
ews
onlin
e
Talk
ed w
ith b
anke
r in
-per
son
Read
bro
chur
e in
ba
nk
Talk
ed w
ith c
ust.
serv
ice
on p
hone
Look
ed a
t sig
nage
in
Ban
k
40%!36%!
30%!28%! 28%!
61%!59%! 58%!
48%!
36%!
51%!
43%!39%!
31%!
FMOT
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Banking, Apr 2011
75% 91%
79%
45%!42%!
39%!
32%!29%!
75%!
64%!60%!
53%!
40%!36%!
60%!
53%!
Source of Information (Insurance) When you were considering purchasing {PRODUCT}, what sources of information did you seek out to help with the decision?
Ad o
n te
levi
sion
Mai
l fro
m In
sura
nce
Com
pany
Read
info
rmat
ion
Com
pany
w
ebsi
te
Emai
l fro
m
Insu
ranc
e C
o.
Not
iced
ad
onlin
e
Sear
ch e
ngin
e
Frie
nds/
fam
ily
Com
paris
on
onlin
e
Revi
ews
onlin
e
Talk
ed w
ith c
ust.
serv
ice
on p
hone
Talk
ed to
Re
pres
enta
tive
in-p
erso
n
Stimulus
ZMOT FMOT
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Insurance, Apr 2011
Cus
tom
er
serv
ice
onlin
e
79%
94%
79%
56%!
38%!
33%!
23%!21%!
54%!
49%!
41%!39%!
30%!
23%! 22%!
26%!24%!
21%! 20%!
Source of Information (Credit Card)
Emai
l at w
ork
Mai
l at H
ome
Read
info
rmat
ion
Com
pany
w
ebsi
te
Ad o
nlin
e
Ad o
n TV
Sear
ch e
ngin
e
Frie
nds/
fam
ily
Com
paris
on
onlin
e
Revi
ews
onlin
e
Talk
ed to
Re
pres
enta
tive
in-p
erso
n
Stimulus ZMOT
FMOT
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Credit Card, Apr 2011
Cus
tom
er
serv
ice
onlin
e
Read
com
men
ts
Talk
ed to
Cus
t. se
rvic
e on
line
in-p
erso
n
Sign
age
at
Bank
Broc
hure
at
Bank
84% 81% 47%
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
This is the new World of ZMOT
50%� 49%� 38%� 36%� 31%� 22%� 22%� 18%�Searched
online Talked with
friends /family
Compared product online
Sought info. from
manufacturers’ website
Read product reviews
Sought info. From retailers website
Read comments
Became friend/
follower/ ’liked’ a brand
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Average Number of Sources
Google Confidential and Proprietary
5.8 7 7.3 9.8 8.6 8.9 10.2 10.8 11.7
14.8 18.2
14.7
Res
taur
ant
CP
G H
ealth
/B
eaut
y
CP
G G
roce
ry
OTC
Hea
lth
Cre
dit C
ard
Inve
stm
ent
Trav
el
Ban
king
Insu
ranc
e
Tech
Aut
omot
ive
Vote
rs
Average # of Sources Used by Category
Shoppers can range from using an average of 5.8 sources when choosing a Restaurant to a high of 18.2 sources used by Automobile shoppers.
Shoppers use a range of sources, depending on type of decision
Q2 When you were considering purchasing [PRODUCT], what sources of information did you seek out to help with your decision? Base:N=5,003
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011 www.google.com/think/insights
Investor use 10.8 and 11.7 sources respectively, when choosing a Banking and Insurance product. [Based on research in the USA]
Source: Google/Shopper Sciences, Zero Moment of Macro Study, Apr 2011. www.google.com/think/insights. Google Confidential and Proprietary material.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Gen X | Gen Y : Average Number of Sources
Source
14.5 ZMOT
99% Source
11.2 ZMOT
90% Source
6.0 ZMOT
83%
Source
13.5 ZMOT
94% Source
12.4 ZMOT
93% Source
9.6 ZMOT
96%
Source
13.5 ZMOT
91% Source
5.5 ZMOT
79% Source
7.4 ZMOT
74% Source: Google/Shopper Sciences, Zero Moment of Truth Study – Apr 2011
18-34! 35-49! 50+!
Banks!
Insurance!
Credit Card!
Mobile as ZMOT will only grow in importance
61% of smartphone users call a business after searching
45% of all consumers use smartphones for in-store product research
Source: Google TheMobilePlaybook.com 2012
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
WHAT IS "HAPPENING
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
640 Tweets per second!March 2006! 340 million
Tweets per day!500 million
registered users!IPO*!
$10-11 billion!Market Value!
*based on $17 per share private sale. Less than 10 years!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
If Facebook was a country.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
CHINA 1.3 billion
INDIA 1.1 billion
USA 300 million
Brazil 190 million
Facebook 1.1 billion
It will be the second largest populated country in the world.
Feb 2004!
1.11 billion active users,
globally.!
Market Value!Crossed $100
billion in August 2013!
Less than 10 years!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
0!
100!
200!
300!
400!
500!
600!
700!
800!
900!
1000!
1110!
Aug' 04! Aug'08! Apr'09! Sep'09! Feb'10! Jul'10! Jan'11! May'11! Sep'11! Apr'12! Oct'12! Mar'13!
First !4 years!
Next 1 Years;!added 150 m.!
Next 1 Years;!added 200+ m.!
Next 1 Years;!added 350+ m.!
Next 1 Years;!added 200+ m.!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Feb 2005! 4 billion views per day.!
100 hours
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
NINETY-FIVE.The percentage of companies using LinkedIn to find and attract employees. 59% use Facebook and 42% use Twitter.
14
Dec 2002!
244 million monthly unique
visitors!
Market Value!US$ 32.56 billion!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel © faberNovel 2013 ••• 6
IT’S THE FASTEST GROWING TALENT NETWORK.
Source: “LinkedIn’s Road to IPO” – Mashable.com
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2 new members every second
Mem
bers (in millions)
LinkedIn – Is Acquiring 2 members/second
§ What are they doing?
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel That’s 13X more than the LIBRARY of CONGRESS
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
THESE WERE ALL SOCIAL MEDIA COMPANIES.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
WHAT HAVE THEY DONE!?
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
WHAT ABOUT
DIGITAL COMPANIES ?
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
§ Online Money Transfer (2000, USA) § Oct 2002 > acquired by ebay for US$ 1.5 billion § In EU, Paypal operates as a Lux-based bank.
As of 2012 § Payment volume : US$ 145+ billion; § 194 markets; § 232 million accounts. § Customers can sent, receive and hold in 26 currencies worldwide.
PayPal
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
§ Online Money Transfer (2000, USA) § Oct 2002 > acquired by ebay for US$ 1.5 billion § In EU, Paypal operates as a Lux-based bank.
As of 2012 § Payment volume : US$ 145+ billion; § 194 markets; § 232 million accounts. § Customers can sent, receive and hold in 26 currencies worldwide.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
AMAZON.COM It is the world's largest online retailer!
| 152 million |
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Did you know: Market cap
US$ 105 billion 1.7 X market cap eBAY
Customers
152 billion 4 X # customers GROUPON
Employees 51,300 13 X # more than FACEBOOK
Revenue US$ 48 billion 27% more than GOOGLE
Retail Brand #1 Better than WALMART
In 15 years Amazon went from 1 category (books) to 16 main categories
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Jeff Bezos
Every step was for Customer.
“Be afraid of our customers, because those are the folks who have the money. Our competitors are never going to send us money.”
§ CUSTOMER FOCUS § FRUGALITY § INNOVATION
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Will pay $5 to Walk-Out of Stores Empty-handed.
§ Scan the bar code of the product or !
§ Take a picture & type the product’s name, or !
§ Say the name of the product !
The customer will receive the search results and the user can decide if Amazon and its merchant partners offer the same product, including the price and the discount.!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Different Folks for
Different Volks
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
How about financial industry ?
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Car Insurance
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Aviva | AXA | Direct Asia | NTUC Income | MSIG | Great Eastern |
The above image is from www.aviva.com.sg | Personally, I find dealing with Aviva Car Insurance is rewarding and professional.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
How about Banks?
FRANK.
EXPRESS YOURSELF WITH
Easily manage your money !through Online Banking!
Keep track of your spending automatically!
Setup sub-accounts for Savings Goals!
See how other people like you manage their money!
Easily manage your money !through Online Banking!
Keep track of your spending automatically!
Setup sub-accounts for Savings Goals!
See how other people like you manage their money!
Many more , over 100 designs.
New branch offers paperless transactions, digitablets, financial literacy workshops & more “Bank by day, financial playground by night, ” “I-Designed-A-Bank” contest, former students from the NUS School of Design and Environment designed the DBS Remix branch. DBS Remix takes on a brand new platform. § It offers all financial capabilities like most other branches, § It also serves as a learning zone for the youth. § It is an avenue to network, share ideas and spread creativity. The branch, § Digital guest book available for customers and clients to provide comments and feedback. § No marketing brochure. Paperless branch, DBS Remix will send by email. § Embrace social media. Facebook. Everything, from the latest news to cyber advertising, in Facebook. § Digitablets, touch screens, an e-queue system and an infotainment screen, have all been installed to make the experience
a memorable one.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
needs; but on wants must focus not just on
The ORGANISATION
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
The CONSUMER
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
GEN X Y Z You have heard of
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
C The birth of
Generation Control
Content Communicate
Creativity
Channel Creative Class
Community
Connected
Co-Creators Cash
Consumer 2.0
Conversation
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
The consumers today are
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
I post on blogs and BBS because I can express myself to millions of people at once. I like the rush, and I feel empowered.
“ ”
Source: http://china.seekingalpha.com/article/30979
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
I believe the bloggers and their ideas. They are my friends and will tell me the truth,
unlike advertisements.
“ ”
Source: http://china.seekingalpha.com/article/30979
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Fortunately, banks are in a position to take advantage of
BIG DATA & ANALYTICS to generate new revenue and amazing customer relationship.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
personalized offers targeted cross-sell improved customer service
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
BIG DATA & ANALYTICS
Spending Pattern
Behaviour Channel Usage
Product Portfolio
“
“
Bank Interaction
Credit Information
Social Media
Customer Profitability
“deliver offers at point of decision” More insight Deeper insight Faster insight
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
§ sad
Mr. Ahmed
Leading Bank
Mr. Ahmed is a customer
Housing Loan
Checking Account
Saving Account
Credit Card
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Mr. Ahmed is renovating his kitchen
And he buys a new set of chef Knives
The bank recognizes that Mr. Ahmed has made a number of household purchases lately, and
analyzes his financial and transactional data, including …………
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Shares dinning experiences
Likes 6-ring Gas cooker
Visits gourmet restaurants
Loves to cook
Spending Pattern
Income
Saving Balance
Available Credit
Loans
Credit Score
⏏ Level of Risk
Social Media
Bank will also look at Mr. Ahmed’s related activities in Social Media (Public Information)!
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Using BIG DATA predictive analytical, the bank has the following information to take a decision:
1. Mr. Ahmed wants a 6-ring Gas Cooker
(Professional Quality) 2. Stove will cost around USD 2,500 3. Credit History of Mr. Ahmed has been
good 4. He has exhausted his credit limit, due to
the latest kitchen renovation. 5. There is good possibility that the
appliance store will offer Mr. Ahmed credit (Store Credit – Courts).
6. The banks compares with other individuals similar to Mr. Ahmed’s profile.
The bank wants to ceased this business opportunity before the store credit is offered to Mr. Ahmed. The bank send Mr. Ahmed an offer to extend his line of credit:
OFFER
$2,500 at 0%
for purchases
made in the
next 24 hours.
Review Terms Accept
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Mr. Ahmed uses the additional credit to buy the 6-ring Gas Cooker (Professional Quality).
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
The bank offers to hold in custody the copy of the receipt and the warranty.
OFFER
Protect your
purchases!
Extend your
warranty for
$100 for 2 years
Review Terms Accept
ALERT
Protect your
purchases!
Archive receipts
and warranty
with us.
OK to Proceed
The bank offers an extended warranty for a $100 for 2 additional years.
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
§ Meeting expectations is “boring”.
§ Customers view products/services as “commodities”. We need to offer innovative and “engaging experiences” that will consistently excite and delight customers.
§ Customers expect to receive greater value for their loyalty, heightening their wants and expectations for products, services and overall experiences.
M E E T I N G VS. EXCEEDING
EXPECTATIONS
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
The most successful companies recognize that they are engaged
in a continuous battle for the hearts and minds of customers.
Deliver not just what you promised;
the key to deliver more than they were expecting.
X Y C Z Recognize
EXPECTATION EXPECT
Waves of Change Oceans of Opportunities 7 – 8 October 2013 Hilton Kuala Lumpur Hotel
Thank You have a “great evening”
Suraj Mishra [email protected] +65 97916144