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GRAB THAT WALLET - BOOK REVIEW

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Ashok Kumar Bunja

on 31 December 2014

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Transcript of GRAB THAT WALLET - BOOK REVIEW


Make money by helping others make their money
Building business with financial products
Purchase of financial products
Continuous interface with customers
Handling issues based on products and processes
Customer satisfaction and customization

Securing long term relationship with consumers
Consumers stick to one or the other service provider
Models need to be developed for company’s specific situation

WHAT DO OTHER INDUSTRIES DO
Consumer Surplus – the value derived by a consumer in excess of the price paid for the product
Cost Leadership – ability of a bank to profitably and sustainably offer cheaper loans
Cost Focus - narrow focus on a small market led by cost as a competing factor
Modifying process to arrive at differentiators
Technology as an enabler
THE NEED - PORTFOLIO MATRIX
The problems unique to the financial services industry.
The needs-portfolio matrix:
Encounter quadrant: one who has an immediate need.
Know quadrant: hidden need and the service provider identifies it.
Grow quadrant: one who has need for multiple products and has a service provider who satisfies those needs.
Value quadrant: hidden need for multiple products.

UNDERSTAND THE CUSTOMER
Segment the market based on the commonality of needs.
Segment based on the stage of life of the customer
Understand the requirements of the customer to provide right product
Basic requirement
Sophisticated requirement
Requirements changes depending on the growth of life
Early stage requirement
Later stage requirement
Growth of the product depends on the growth of the customer
Right product should reach the right customer

Segments that can be achieved easily
Basic requirements at early stage
Sophisticated requirements at later stage
Segments that should not be taken
Sophisticated requirements at early stage in both felt and latent need
GRAB THAT WALLET - BOOK REVIEW (TEAM-9)
IS THERE ANY PROBLEM
UNDERSTANDING THE SITUATION
Aspects of Trust in Sales Situations:
The size of the companies does not matter-what is needed is trust with the customers
E g: Tata and AIG brand name and their influence respective geographical areas
Often the sales representative is the face of the company
A less trained representative often stumbles before a well versed business customer
Personal Selling and Financial Services:
Role of personal selling is directly proportional to the amount of profit earned
Without trust , it is hard to sell Financial Services products
Customers are influenced not only by branding and advertising, but also by Trust
Many a times the consequences of failure in financial products has a devastating effect on the customer’s life
A delicate process, trust is necessary for building a standing relationship with the customer
Building trust is a gradual process, that takes a lot of time and effort.

UNDERSTANDING THE ORGANIZATION
There are two types of Silos:
1)Silo based organization
2)Relationship based organization

Silo based organization:
Producers try to build up huge database of contacts to enlarge their customer base
It helps salespersons move forward in a focused man
In this ,each customer is treated with individual care and respect.
However the number of customers acquired is very slow over the period of time.
Wealth management sector is best expressed as an example.
UNDERSTAND THE ENCOUNTER QUADRANT
This is where the company meets the customer
The customer is already in the evaluation of alternatives stage.
Freebies – the motivational tool
The freebie management response and its profitability impact.
The impact of campaigns and its disadvantages.
Low pricing power and low profitability due to high levels of comparisons.
High attrition rate due to least loyalty and easy availability of substitutes.
Use of silo- organisation to secure clients for a single product.
Offer only what the customer needs without any add-ons.
Grow the base through discounts while the customer bargains.
Now we have the customer having brand experience. Lets move onto Know Quadrant
SECOND QUADRANT – KNOW QUADRANT
Uncovering the latent needs of consumer through sales person.
Pre-planned second product for the client who is already using the first product.
Change the perception of consumer towards company
Advantages of minimum comparability.
Increased pricing power.
Increases profitability
Converts latent need into felt need
Low attrition rate due to multiple products
Makes the customer to stick to our company

UNDERSTAND THE THIRD QUADRANT- THE GROW QUADRANT
All the financial services under one company.
Here, customer uses multiple products from the company
Q1-Q3 shift : expectations of similar competitiveness.
Q2-Q3 shift: importance of reinforcing wins from the previous calls.
Increased pricing power and reduced levels of comparisons.
Low attrition rate due to increased convenience


THE VALUE QUADRANT
The customers are provided with a range of products
It provided portfolio products which tends the customer to buy everything from them
Need to cover every possible felt and latent needs of the customer
The feasibility of launching premium products
QUADRANT MIGRATION
The ideal way to navigate through the matrix is the sequence ;
Q1 – Q2 – Q3 – Q4
Other ways to navigate the matrix are :
1) Q1 – Q3 (cross sell) (Encounter to Grow Quadrant)
2) Q1 – Q4 ( Encounter to Value Quadrant)
3) Q2 – Q4 ( Know to Value Quadrant )

Organisation needs for quadrant migration are
1) shift in the need axis
2) pre thought needs
3) skills and training
CRM is managing clients relationship through their lifecycle of use of products of a company.
It provides all the data about the customer.
The shift on the horizontal axis and continued servicing of happy customers is heavily reliant on the ability of sales and service staff to log on to the system and get information on their clients
Companies should be willing to invest a lifetime to grow their relationship with the clients.
Pressures to sell and perform in shorter run urges the need to build a long term sustainable portfolio.
A company must align its short term goals to long term visions and achieve a balance.
The ideas presented in the matrix and the trust chain require investment, patience, and organisation building

THE HOLY GRAIL OF WALLET SHARE
THANK YOU
The Trust Chain:
Relationship based organization:
Full transcript