MARKETING OF SAVINGS BANK This session contains 1)Marketing philosophy 2)Customer’s loyalty 3)Types of customers 4)Strategic focus 5)CSI 6)SWOT analysis(based.

MARKETING OF SAVINGS BANK

This session contains

1)Marketing philosophy2)Customer’s loyalty3)Types of customers4)Strategic focus5)CSI 6)SWOT analysis(based on survey of customers)

7)Marketing tips of various savings schemes8)Suggestions for improvement

Marketing philosophy

• Business success depends on behavioral loyalty and attitudinal loyalty of customers.

• These are outcome of customer’s experience with our department.

Attitudinal loyalty

• It is loyalty of customer to our products and services

• It is result of customer orientation, market leadership, reliability, fees charged and overall experience of customer with our department.

• It matters a lot and behavioral loyalty is result of it

Outcome of customer loyalty

• Customer will continue to recommend savings account to others

• They will continue to use savings account service in the future.

Loyalty matrix

The loyalty matrix identifies four levels of customersA) Truly loyalB) AccessibleC) TrappedD) High risk customers

Truly loyal customers

• Truly loyal customers are backbone of department .

• Organisation should maintain and grow relationship with them

Trapped customers

• They are likely to stick to our products• They are ready to switch over to alternatives if

they get.• By showing more commitment to their

concerns they can be retained and relationship with them can be enhanced.

• They can be converted as loyal customers

Accessible customers

• Customers who do not need our services anymore and want to stop using our services

• It is important to figure out what prevents them from using our products.

• It may be due to competitors or any internal customer

• Intervening and re directing them towards our product make them trapped customers

High risk customers

• Customers whom we are likely to lose• Those who do not like and do not plan to

continue our products.• But we have to identify counter situational

factors to encourage them to buy our products and they can be moved to trapped category.

Customers satisfaction index

• In some very competitive markets all suppliers will perform equally and minor issues may end up with great deal of influence on customers purchase decisions.

• A low influence area could be important we may be doing very well but it may not swing the vote in customer’s mind.

CSI

• Customer satisfaction index is computed on the basis of loyalty and simple average of experiences of customer with different variables.

Strategic focus

• Three action priority areas are• A) Critical improvement areas• B) Secondary improvement areas• C) Leveragable strengths

Critical improvement areas

• Areas where we have to concentrate more on improvement in order of influence.

• We have to concentrate on this more to retain the customers

• This is attributable to bad quality of products, customers bad experience with department, etc.

Secondary improvement areas

• These are not critical as critical improvement areas.

• Depending upon the resources available an organisation can concentrate.

• “How much it will contribute to retain customer “ is also important.

• Value added services are examples

Leveragable strengths

• These are our competitive strengths as determined by our customers.

• We should also concentrate on leveragable strengths

• These are the ways we are already taking advantages and doing well

• These areas where we have high influence and are demonstrating superior performance in the marketplace.

Savings

• What is the need of savings bank?

Need for savings bank

• Financial security • Savings purpose• Long term investment• Transaction purpose(for encashing cheque

amounts)• Need of the hour

Savings Bank

Types of schemes

• Savings bank• Recurring deposit• Monthly income scheme• Senior citizen savings scheme• Public provident fund• Time deposit• NSC VIII issue and IX issue

Activity

• What is SWOT analysis?• Four groups of trainees to be formed. • 1st group will identify the strength of POSB• 2nd group will identify the weaknesses of

POSB• 3rd group will identify the opportunities for

POSB• 4th group will identify the threats for POSB

SWOT analysis- strengths

• Strong brand equity on account of being a govt organisation

• Easy account opening with less document requirement

• Low or nil banking service charges

Strengths

• Lower minimum balance• Wider network in rural areas• Core banking facility being introduced• Cheque book facility is provided• Payment of amount of all government

schemes through POSB account

Strengths continued

• Nil balance account can be opened for government schemes

• Premature closure facility is available in all schemes except PPF

• No charge for transfer of accounts• Minors of age above 10 years can open

account

STRENGTHS

• Net banking and mobile banking facilities are in core banking.

• ATM facility will be provided• Customers can do transactions on their

desktop

WEAKNESS

• Lower interest rates• No loan facility• Non conducive ambience-Seating, Lighting,

Long queue, dirt• Non flexible working hours• Lack of customer focus –unfriendly staff• Non availability of enquiry counters• Poor complaint handling mechanism.

Weakness

• No proper advertisement in media • No flexibility in long term investments• Less flexibility in payment through cheque

transactions• Withdrawal procedure for illiterate account

holder is complicated• Centralized accounting system causes delay in

service

Opportunities

• Rural population can easily avail these facilities

• Educational institutions can be convinced for credit of tuition fees through POSB accounts

• Services of delivery staff can be best utilized in advertising SB schemes

Opportunities

• Optimum use of one stop solutions can be made through cross selling of other products

• Social benefit schemes can be leveraged• CBS brings us on par with other service

providers

Threats

• People prefer banks over post offices because of facilities offered

• In rural areas also nationalized banks are going to establish branches

• Customers grade post office service low when compared to services of banks

• Post offices are not established in prominent places.

Activity

• Four groups to be made• The first group will list out the marketing tips

for Savings accounts and RD accounts • The second group will list out the marketing tips

for MIS and TD accounts• The third group will list out marketing tips for

SCSS and PPF• The fourth group will list out tips for cash

certificates

MARKETING TIPS for SB

• Potential customers in the locality have to be identified by Post master

• Their profile has to be maintained• Whenever new services are introduced they can be

informed through SMS or e mail• They can be greeted on special occasions• At the time of maturity of accounts they can be intimated

through sms alert or email and asked to reinvest the amount

Marketing tips-Savings Accounts

• Inform those customers importance of opening of SB account in finacle environment if they don’t have SB account

• Customers can be made aware of facilities offered in core banking systems through notice boards.

New horizons

New horizons

New horizons

Marketing tips-PPF

• Marketing executive or any official of the dept can visit Government departments and offices, schools and other educational institutions, explain usefulness of opening PPF accounts to the officials.

• PPF accounts can serve the purpose of savings as well as income tax rebate and also loan is given periodically. A portion of amount can be withdrawn after five years which need not be repaid.

Marketing tips-PPF

• This will not only help Government servants but also income tax payers since interest earned in PPF account is exempted from IT

• While marketing more emphasis can be given on income tax rebate which will lure more customers.

Marketing tips - MIS

• Helpful to those who can get monthly interest as additional income.

• Interest can be paid through post dated cheques

• Automatic credit to SB account is also possible• Premature closure of account is allowed after

one year

Marketing- Senior Citizen Savings Scheme

• Retired Government servants also can open account after fifty five years of age.

• Interest can be credited to SB account.• Joint account with spouse even though spouse

is not senior citizen• Premature closure is allowed after one year• Interest is exempted from IT upto 10000/ per

year.

Marketing tips-TD

• For short term investors 5 year TD accounts will serve the purpose of income tax benefit.

• Even in case of all types of TD accounts automatic investment facility is available from the date of maturity.

Marketing tips-RD

• Educational institutions can be approached to open RD accounts on Pay Roll savings scheme.

• With permission of head of institution eligible students can be approached to open SB and RD accounts to cultivate the habit of savings in early age since it involves small amount of money

Marketing tips

• PLI customers can be made aware of ATR facility from SB to PLI

• In sub divisional level, melas to be conducted to educate rural population regarding opening of SB and RD accounts with low minimum balance.

• Advantages of core banking have to be explained to BPMs and villagers

• Target can be given to BPMs and other staff

Marketing tips

• Educational institutions can be approached for opening of SB accounts for payment of scholarships of pupils.

• In big industrial areas employees can be made aware of facilities of SB,RD and PPF schemes.

Marketing Conclusion

• Marketing is procuring business by luring the customer through our skills and highlighting advantages of our products over others.

• Marketing is based on ability of line managers • Marketing can be done anywhere, anytime

with any customer depending upon his /her requirement

Marketing

• Repeatedly the customers have to be approached for getting business and it is a continuous process and not one time measure

• Target setting is a way of motivation to the marketing executives

• Achieving the target will reinforce the confidence of the ME

Ensuring constant growth