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How two Italian banks achieved their business goals through more effective documents

Nicola Muraro – Vice President Gruppo Selecta Marketing Dynamics – Brussels – 27-28 October 2010

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Corporate documents as business drivers

ñ Direct documents cost is small compared to the total company expenditure (1-3%)

ñ Because of that documents are often out of the priorities of the top management despite their large impact on the company business:

ñ Documents imply many other costs (postage, archiving, etc)

ñ Documents are one of the key touch points towards the customers

ñ Not giving the right attention to documents a company misses opportunities:

ñ to reduce hidden costs

ñ to improve its own business

ñ Today we will see how more effective documents have helped two big banks in improving their own business

ING DIRECT CASE STUDY

Italian Market Leader in Online Banking

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What is Ing Direct in Italy

ñ Ing Direct Italian branch is market leader in online banking with 1,2 million customers.

ñ Started in Italy in 2001 with just one product: online saving account

ñ Business model is to supply low cost services with no tricks and to pay high interests on the savings

ñ Success depends largely on low process costs with means a continuous effort to make processes as smooth as possible

ñ Main touch points to become Ing Direct customers are: Web and phone

ñ Selecta designed (2001) a frictionless workflow which ensure Ing Direct:ñ To produce and send a customized Opening pack to new customer in J+1

ñ To minimize the back-office activities

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New business model introduced more complexity

ñ Business model moved from being just a piggy-bank to become a complete online bank by adding new services: mortgages, investments, trading on-line, payment account

ñ Ing Direct has a strong risk adverse approach, so new filters have been added and more information has been requested

ñ It drove to more difficulties in completing correctly data collection forms

ñ More services meant more complexity:

ñ More products to explain to customers

ñ More difficulties to explain how to fulfil documents correctly

ñ More information to collect (i.e. fiscal code, ID)

ñ More back-office activities (costs) for dealing with incomplete information and phone call

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ñ Ing Direct asked for a “simplexity” approach without increasing internal process costs:

ñ To make it as easy as possible for customers to understand and complete successfully data collection forms

ñ To avoid any further complexity or activity overload in Ing Direct back-office

ñ The request was for making the existing process more frictionless than before

ñ Metrics for success: ñ Rate of documents correctly completed

ñ Lower number of phone calls for asking clarification

ñ Process automation

ñ To minimize item to pre-print and stock

ñ Main goal: quality, meaning to be quick and correct

Ing Direct requirements

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Changes done jointly by Ing Direct and Selecta

• White space approach for totally data-driven documents

On-demand

• Documents easier to complete

Redesign

• Different layout depending on customer behavior

Differentiation

• Instead of offset plus black & white printing

Full color printing

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Bank account statement

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The opening pack

Ing Direct Benefits

ñ Business improvement

ñ Higher success rate in transforming prospects into customers

ñ More documents correctly fulfilled by the customers at the first attempt

ñ Better overall perception of Ing Direct experience by the customers

ñ Faster time-to-market for changing documents

ñ Savings

ñ Less phone calls thanks to more effective documents

ñ Reduced overload on back-office department

ñ No more waste for discarded pre-printed material

ñ Lower overall process costs

www.selecta.itp. 15

BANCA FIDEURAM CASE STUDY

Italian market leader in financial advisory

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Who is Banca Fideuram

ñ Banca Fideuram is market leader in the financial advisory market in Italy, with over 30% market share, and the fourth player in asset management with 4300 financial advisors and more than 450 offices and branches

ñ Main offer consists in investment products such as trading, mutual funds, individual products and life-insurance products.

ñ Market: private and afferent segments, where two thirds of Banca Fideuram assets and management are concentrated.

ñ Marketplace has a low level of differentiation among the offers of the different actors, so communication is the key to reinforce and confirm brand equity and value proposition

ñ Communication media are financial advisors and documents sent to customers. Customers relationship, trust and loyalty depends on them.

ñ So, documents are one of the key success factors for the bank

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The Project

ñ Re-design the whole transactional information towards the customers.

ñ 100 documents produced only 14 were really relevant.ñ Project steps were:

ñ analysis to understand the way documents worked and to see what to do with them (improve, cancel, consolidate)

ñ to check the best practise regarding similar documents sent by other companies

ñ to set the rules to improve documents effectiveness and compliance with corporate values

ñ focus groups: customers and financial advisors involvement to understand their expectations

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Outcomes

ñ Reading should be immediate, easy, transparent, clear. ñ labels using customer language ñ fonts, colours and shapes chosen to maximise readiness

ñ The customer has to understand the asset allocation and the level of risk

ñ First of all: usage of digital full-colour printing to deliver clear and understandable performance

ñ Reduction of the number of documents (merging, cancellation)ñ Documents usage as a cross-selling supportñ Document: it is a way to increase customer’s trust and

loyalty

The new Fideuram color statement

Fideuram Benefits

ñ Business improvement

ñ Increased customer satisfaction and loyalty

ñ Better overall perception of Banca Fideuram experience

ñ Differentiation toward competition by using more effective documents than the market standard

ñ Stronger support to financial advisors for cross-selling

ñ Savings

ñ Less postal costs because of documents consolidation

www.selecta.itp. 15

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2 sides of the same coinLessons learnt

ñ If documents are the nervous system opportunity to create value through them helping customers to see the whole process from data to the recipient

ñ 2 complementary perspectives:

ñ Effective and ineffective documents cost more or less the same. But only effective documents helps in getting business goals.

ñ Transactional colour documents in Europe maybe are not so glamour as expected but anyway they can be incredibly effective

Effectiveness

Efficiency

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The business model

ñ Pro-activeness toward customer’s needs as a long-term strategic partner

ñ Consultative approach looking for the value hidden behind corporate documents

ñ Look at the whole document process

ñ Charge for the added value services you supply: process analysis, software development, document design consultancy, postal delivery optimization

ñ Value creation shared with the customer

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Thank you

Gruppo Selecta

Nicola MuraroGruppo Selecta Vice Presidentnicola.muraro@selecta.itwww.linkedin.com/in/nicolamuraro

ñ Mission:

ñ To help companies in choosing the best communication solutions through document management.

ñ Basic data:

ñ Turnover: over € 70 Mio/Euro

ñ First private transactional and direct marketing operator in Italy

ñ Customers: 750 in different EU Countries

ñ Sales offices: Italy and Europe

ñ Partner: IPN Global