Strategies to move to customer-centric
productisation and pricing
Asian Banker Conference, 6th April 2011
K. Nanda Kumar
CEO, SunTec
Why Customer Centricity?
Market
saturation
Changing
customer
needs
Opportunities
in rural and
SME segments
International
expansion
Need for Customer
centric strategies
2
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Competition
from global
players
Non-traditional
competition
(Telcos,
retailers..)
Build Trust; Own Customers!
Steps to build trust and own customers
1
Know
Your
customers
2
Provide right
Product and price
4
3
3
Deliver right
customer
experience
Track and
retain
Valuable
customer
SunTec confidential | www.suntecgroup.com
Customer
Trust &
Ownership
1. Know your Customers
Customer
Intelligence
Segmentation
360 degree
View
Customer
Management
• Predictive modeling
• Intelligent offerings
• Behavioral
• Products
• Accounts
• Hierarchy
• Profile
• Regions
• Value based
• Demographic
• Others
• Channels
• Transactions
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2. Offer right products and price plans
Customer
needs/
Lifecycle value
Business
objectives
Future needs
of customer
Modeling of
best value price
plans
Personalized and
differential pricing
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Competitor
plans
Modeling of best
value product
packages
Segment focused
bundles/packages
3. Deliver compelling customer experience
Relationship Value matrix
Total Transaction Volume
Profitable Behavior
Financial Milestones
Long-term Customer Value
Loyalty to the bank
Future Affiliated Potential
Customer Relationship Value (RV)
Segments based on Relationship Value
Unique segment focused customer benefits
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Superior
Experience
leads to
trust
4.Track and retain valuable customers
Constantly track and retain valuable customers
Reward highvalue
customers
Relationship
value/customer
profitability
measure
Customer
benefits
(Financial/NonFinancial)
Transform
mediumvalue
customers
Customer
value/experience
analysis
Invite
profitable
customers
Deter lowvalue
customers
Need a technology platform to constantly monitor customer value
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Technology to enable customer centricity
1
Know
Your
customers
360 degree view
Micro Segmentation
Behavior modeling
2
3
Provide right
Product and price
Lifecycle value based
benefits
Customer centric
pricing
Risk/SLA based price
variations
Customer focused
bundled offerings
Deliver right
customer
experience
`
Multi channel driven
personalized
experience
Relationship focused
price plans
Technology Platform enabling Customer Centricity
8
SunTec confidential | www.suntecgroup.com
4
Track and
retain
Valuable
customer
Customer value
analysis
Business profitability
analysis
Revenue impact
analysis
Customer centricity: Impact on top line/ bottom line
Surge in revenues……
• Increased sales volumes
• Retention of high value customers
• Improved up-selling and cross
selling
“Segment focused product
offerings in an Indian bank
enabled 74% growth in fee
income”
Assured profits…..
“A leading Indian private
bank plugged $447
thousand a year, through
centralized pricing and
billing implementation “
• Prompt encouragement of profitable
businesses
• Control over operational margins and
costs
• Right pricing for right customers
• Product and customer level profitability
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SunTec confidential | www.suntecgroup.com
SunTec – Pioneering Relationship-based
Pricing in financial services industry
since 2000
All ‘early adopters’ and innovators in the
Banking, Financial Services & Insurance
space as clients.
Q&A
Clients across Communications, Media & Entertainment,
Port Operations, Leasing and Fleet Management.
HFCL
10
knk@suntecgroup.com
MTNL
SunTec confidential | www.suntecgroup.com