The global economic crisis has put a clamp on consumer spending in all areas, including banking, insurance, telco, utilities,… Markets have been saturated with a variety of offers from existing players with new entrants emerging while investors demand ever increasing profits. One of the paths forward is to embrace Customer Value Management. Even though most everyone has some banking and insurance products, how they are composed is rarely ideal and, in many cases, product ownership is divided among several institutions. The best in class institutions understand that this represents suboptimal profitability of the client and, more significantly, is inconvenient for the client. The right approach to Customer Value Management is to provide the client with a set of products and services which optimally serves their needs and lifestyle, while maximizing the long-term value of the client for the bank/insurance company/telco operator.
ABC prefers to take a holistic approach to CVM – that is, to start by recognizing the strategy and positioning of the institution, its product set, existing marketing, sales and CVM activities, the needs of its clients and their behavioural trends that can be detected in the data. This allows us to design, pilot and implement jointly with our clients, ideal CVM models and processes. It should be noted , however, that we also encounter, in many cases, engagements where the scope of the activities is more narrowly defined, the following being some of the typical areas:
- Cross sell
- Up sell
- Segmentation
- Attrition management
As always, we concentrate not only on the development of the concepts and models, but, most importantly, on the piloting and final implementation of our recommendations.