毕博上海银行咨询Final Deliverables Marketing121499.doc

HANVIT BANKCORPORATE CUSTOMERMARKETING12/10/99Prepared by KPMG, LLPThis Document is Proprietary and Confidential to Hanvit Bank and KPMG, LLP. Unauthorized duplication is prohibited.TABLE OF CONTENTSHANVIT BANK CORPORATE MARKETING FUNCTION4Overview4OBJECTIVES OF CORPORATE MARKETING5Goals & Objectives of Corporate Marketing5Commercial Client Marketing8MARKETING PROCESSES11MARKETING STRATEGY AND BUSINESS DEVELOPMENT15Marketing Program Development15Marketing Roadmap for Hanvit Bank16Marketing Planning17Business Development Planning19MARKETING AUTOMATION22DATABASE MARKETING25CAMPAIGN MANAGEMENT27SALES FORCE AUTOMATION33CUSTOMER RELATIONSHIP MANAGEMENT35ENTERPRISE INTEGRATED RELATIONSHIP MANAGEMENT38TECHNOLOGY SUPPORT40Technology Solutions for Automated Customer Marketing40Marketing Software42Contact Manager Software42Sales Force Automation Software42Campaign Management Software42Corporate Customer Data Warehouse43ROLE OF CONTACT PERSONNEL IN AUTOMATED MARKETING45Relationship Managers & Product Specialists45CASE STUDIES46Case Study 1 - Customer Relationship Management Database, Union Bank of California46Case Study 2 Enterprise Integrated Customer Data Warehouse48Case Study 3 Channel Convergence at a Large Regional Bank50Case Study 4 Major Regional Bank Merging Cultures and Customer Relationship52Case Study 5 Major Regional Bank Sales Force Automation54Case Study 6 Major International Bank Information Support for RMs55Case Study 7 $2bn US Commercial Bank Query & Reporting Decision Support56Case Study 8 Cost Overruns in Marketing Automation57Case Study 9 Top 5 US Commercial Bank Marketing Automation58APPENDICES60Appendix 1 - Marketing Automation Components60Appendix 2 - Evolution of Marketing Automation61Appendix 3 - Guidelines to Achieve Marketing Success67Appendix 4 - Guide to Marketing Database Development69Appendix 5 - Role of Customer Service in Ensuring Marketing Success71Appendix 6 - Customer Relationship Management - Supporting Statements from Analysts73Appendix 7 Assuring Success of CRM Initiatives76Appendix 8 - Sales Applications for Wholesale Banking78Appendix 9 - Real-Time Decision Making in Marketing79Appendix 10 - Achieving Superior Customer Service Performance80Appendix 11 - Small Business Marketing81Appendix 12 - Lessons from Marketing to Small Businesses85Appendix 13 - Implementing Enterprise Customer Management86Appendix 14 - Bank Delivery Channel Convergence89Appendix 15 - Thoughts on Marketing at Hanvit Bank92Appendix 16 - Marketing Alternatives to Bank Lending94Appendix 17 - Mobile Solutions for Banking97HANVIT BANK CORPORATE CUSTOMER MARKETING FUNCTIONOverviewThis document describes some techniques and tools for marketing of commercial loans and other products applicable to the commercial or corporate customer marketplace. Hanvit Bank can implement many marketing capabilities using data from the database built for the CRMS project. For maximum marketing information, the CRMS data should be used in conjunction with data and information from other Hanvit Bank IT systems and outside data sources such as KIS and NICE.There two primary activities for the marketing function. The first is to identify and attract new customers. These could be new customers to the bank or they could be existing customers who express a desire for products and services that they do not presently use. This is a “mass” marketing type activity which is segmented as much as possible to make the most efficient use of mass communications techniques. Generally the marketing database is searched for the targeted customer segments and marketing campaigns are conducted to these prospects.The second is the process of marketing and cross selling to existing customers in a one-to-one process. The data gathering process is similar to prospect marketing except that more information is taken from the banks internal files to match product usage and customer information to identify cross-selling prospects. In both cases, the marketing information is sent to the relevant Relationship Manager (RM) or Product Specialist (PS) so that a selling process can be targeted at the identified customers in a more targeted one-on-one sales effort. This marketing also makes more use of other internal information on the customer to help build and justify the product or service sales effort.The techniques described in this paper will begin with a discussion of the benefits of simple “data list pulling” which is the foundation for direct marketing and sales prospect identification. From this, banks usually employ more sophisticated data acquisition and data manipulation tools to enhance the marketing process until a stage referred to as Customer Relationship Management (CRM) is achieved. CRM and Enterprise Integrated Relationship Management (EIRM) will be discussed as they relate to long term goals of an integrated marketing function.Accordingly, this paper will present the following basic marketing subjects:· Marketing Overview· Objectives of Corporate Marketing at Hanvit Bank· Marketing Processes· Marketing Strategies and Business Development· Marketing Automation· Database Marketing· Campaign Management· Sales Force Automation· Customer Relationship Management· Enterprise Integrated Relationship Management· Technology Support · Appendices and · Case StudiesOBJECTIVES OF CORPORATE MARKETINGOverall the Hanvit Bank corporate banking marketing function should solution include:· Market research & analysis, including, - Market potential for target clients- Customer profiling & segmentation- Customer life cycle management- Marketing data analysis- Competitor analysis· Identification and development of market segments· Integration with Relationship Manager, Product Specialist and other branch office functions· Follow up and customer servicing of client relationships.The commercial customer marketing process should be fully integrated with all other Hanvit Bank marketing schemes so that the bank can go to market with a strong product and brand marketing effort. The goal is to differentiate the bank from its predecessor banks (Hanil & CBK) and from other Korean and foreign bank competitors. Marketing program management usually includes all of the following activities:· Database marketing· Campaign management· Relationship marketing· Telemarketing· Internet marketing· Marketing encyclopediaSome activities like telemarketing are more typically deployed in a consumer marketing scheme but can be used effectively in corporate customer marketing.Goals & Objectives of Corporate MarketingHanvit Bank has established Large Corporate and SME Business Units (the “Commercial Customer Business Units” (the “Business Units). Their mission is to become a world-class provider of a complete range of financial products and services Samples of products and services would include: Corporate banking, Investment Banking, Treasury Capital Markets, Insurance, Electronic Banking, Trade Services including letters of credit and FX services, Payments & Cash Management, Business Credit Cards, Leasing, Finance Factoring, Securities Services, Private Banking Services for Key Company Executives to their business segments. The business units will accomplish this mission by:· Providing both business banking products for business customers and consumer banking products for business owner(s), leveraging customer relationships to achieve strong, high-quality earnings growth.· Leveraging the Banks extensive branch network to provide multiple sales and service channels that will meet business customer needs.· Providing differentiated, cost-effective products and services designed for specific target markets.· Using a highly-motivated, professional, relationship management group capable of fulfilling the business banking needs of corporate customers with a wide range of loan, deposit, and fee-based services.One of the most important missions of the Bank is to build a total banking relationship with each customer. This is accomplished by coordinating and leveraging the resources available throughout the Bank in corporate loans, and other product and service areas which are appropriate to the corporate customers banking relationship with Hanvit Bank.Hanvit Banks marketing philosophy should focus on the accomplishment of the following objectives:· Granting and managing loans that will ensure the safety and soundness of the Banks capital, while generating sufficient income to produce a premium rate of return on capital and assets.· Servicing the non-credit needs of businesses such as trade, FX and other services.· Maintaining superior quality and reputation in the delivery of all products and services to customers.· Ensuring a solid working relationship between the credit risk management functions and the marketing functions to be sure that only customers which meet the banks credit standards are accepted as customers.· Anticipating new product or service offerings by being attentive to market and economic conditions.Target Markets OverviewHanvit Banks parameters for target markets, borrowers, and loans may change from time to time, based on the following market forces:· Economic cycles (e.g., local, regional, national, international),· Industry changes and trends,· Environmental factors (e.g., technology, weather, natural disasters),· Regulatory changes (e.g., government programs, banking laws and regulations),· Evolution of distribution channels (e.g., brick and mortar vs. electronic delivery systems),· Capital markets changes (e.g., interest rates, commodity prices, foreign exchange, asset securitization),· Geographical areas in which the Bank has representatives (i.e., the Banks Target Markets)These parameters are based on a balance of risk and reward, and safe and sound lending practices. Changes to marketing objectives and target markets should be made only after consultation with the Credit Policy Committee to ensure marketing efforts are directed at appropriate targets based on loan portfolio requirements.Target ClientsThe preferred characteristics for Hanvit Banks target borrowers should be defined in the Credit Policy Manual or other document. This will allow RMs and other personnel to identify potential borrowers according to the characteristics in the manual.More importantly, this will serve to define data elements for the marketing database. The Bank should ensure that the marketing database has all appropriate data elements for target client identification and the ability to segment on a wide variety of client characteristics.For example, suppose the banks definition for target borrowers is as follows:· Minimum of two years in business operations.· Specific financial statement ratios that meet certain guidelines.· Are within the major industry SIC codes as defined by the banks Credit Policy CommitteeUnder these criteria, · The bank marketing database should have a data element for age of borrower company or be able to identify how long the borrower company has been in business. This can be done simply by comparing the start date of the prospective borrower (from official records or other external data sources) with the current date. If the borrower has been in business for more than 2 years, this is a potential prospect.· Comparisons of simple ratios (e.g., debt to worth, return on sales, return on assets, and a few others) can also be made by comparing the data received from external sources with the guidelines. Those companies who do not meet these requirements would be filtered out from the list of prospects.· Also the marketing database should have a data element for the industry classification code and only those borrowers whose industry classification code meets the approved list will be filtered through as prospects.Different criteria will be defined for different marketing programs. Target customers will be selected based on these criteria. Obviously a query and reporting tool is essential for fast and easy access to this information. Easy to use tools that allow the marketing department, RM or PS to continually refine the criteria will allow the resulting list of prospects to be trimmed down to the most specific target list for effective marketing programs. Commercial Customer MarketingCommercial Customer Marketing should have two major parts as relates to the new Hanvit Bank RM process:· overall marketing and target opportunity identification and· detailed target prospect marketing and sellingOverall marketing and target opportunity identification should be done by a central department with marketing responsibilities. This department could be a bank wide department or a joint department serving the Large Corporate and SME Business Units. The goal is to have a unified marketing function to ensure coordinated marketing messages and programs across the bank, and for economies of scale as related to marketing expenditures. Personnel in the marketing department should however be aligned with the individual business unit, either Large Corporate or SME. This is to ensure proper focus of marketing activities for these departments whose target customers are somewhat diverse.Detailed marketing and selling at the customer level will be done by the RM or Product Specialist (PS). This person will be responsible for reviewing the information about potential opportunities in their assigned territory and doing further analysis to develop a list of high potential accounts. The RM or PS will then be responsible for initiating customer calls and other activities to win the business for Hanvit Bank.Additionally, both the Large Corporate or SME Business Units should also conduct “special emphasis” marketing. This function will be responsible for initiating special promotions such as emphasis on export financing for SME accounts The Korea FSC has requested all banks to place special emphasis on lending to this borrower segment. or agency/syndication lending for large corporations.The marketing department should periodically survey bank customers for business banking services requirements. Additionally, RMs and PSs should continually provide feedback to their individual business units and the marketing department, on customer requirements for products and services that the bank does not currently offer. Using this information, creative solutions should be developed, test marketed and successful “products” deployed bank-wide.A few ideas for bank wide marketing activities are