Insights For Banks From The Retailing Sector

Best practices in retail financial services
more information on www.efma.com

INSPIRING RETAILING CHAMPIONS
BANKING RETAILIZATION REPORT

June 2011
Insights for Banks
from the Retailing Sector
Cover_accenture2011_Mise en page 1 20/06/11 14:58 Page2
Contents
03
Preface
04
Executive summary
07Banks Have Reason to Change
07
Redefining Retail Banking
09 New models for more volatile, multi-connected and autonomous customers
12
Banking Retailization: An evolutionary or revolutionary path?
14Key Survey Findings
14 Almost 50 percent of presented initiatives are considered top priority
32Large and small-medium banks differ along mobile,
customer experience and self service
34Key capabilities to win in the future
35Retail-inspired initiatives
35 Scanning more than 40 leading Retail companies
36Mapping the 16 most inspiring initiatives from Retail champions
45Conclusions: Banking Retailization Next Steps
47Survey Methodology
51About Us
AccentureV9_study#4 23/06/11 16:52 Page2
I N S P I R I N G R E T A I L I N G C H A M P I O N S
B A N K I N G R E T A I L I Z A T I O N R E P O R T
Alessandro Maria Decio
Head of Family and SME Division
UniCredit
Patrick Desmars
Secretary General
Efma
3
Preface
Piercarlo Gera
Global Managing Director Strategy
Consulting Financial Services
Accenture
Accenture, UniCredit and Efma are pleased to present the Banking Retailization Report: Insights for Banks
from the Retailing Sector. The report provides findings from our assessment of leading practices in retail and
other non-banking sectors that banks should consider in evolving their business models to rebuild growth.
Profitability pressures, more stringent regulation and changes in consumer demands and expectations are
compelling the Retail Banking sector to restructure and transform to a more competitive model. Progressive
banks are beginning the process to evolve their business models. They are building upon unique strengths,
such as local knowledge and customer relationships, to address common challenges:
How to differentiate themselves through stronger customer orientation, making a quantum leap in the ability
to serve customers and create new value in the Retail Banking market?
How to gain share-of-wallet and increase cross-selling, satisfying often unsatisfied needs?
How to be more appealing to increase customer acquisition?
How to strengthen relationships while reducing cost-to-serve?
Through our research effort, banks rated the attractiveness of various leading retailing practices and their
ease of implementation. The main conclusions of the research were as follows:
Retail Banking is a peculiar sector in terms of purchasing behaviors, frequency of purchases, etc. Only
some best practices from retail and other sectors should be considered for implementation.
Marketing (with an emphasis on digital marketing), customer segmentation and the ability to continuously
monitor customer needs are key areas where many retailers are advanced and where banks will have to
invest. Leading retailers are constantly reassessing the profile and needs of their customer base; this is a
clear opportunity for retail banks. New business model design should be based on a very clear
understanding of the current and prospect customer base.
Retailers are also adjusting their distribution strategies with a heavy focus on digital distribution, in close
alignment with marketing requirements. They proactively manage customer experiences, predefining
standards and organizing to ensure fast action to potential issues. Retail banks can selectively learn from
these experiences.
This report aims to help banks address key questions of customer strategy and stimulate debate among
banking and non-banking experts. It identifies possible actions banks may take to improve their retail
performance, considering current market trends, customer needs and issues within the current model. Every
institution needs to make their own decisions on business models in light of their strengths, history, customer
profile, and other factors. Our hope is that these outside-in views can contribute to the quality of decision
making.
Executive summary
4
Conditions within todays Retail Banking environment suggest that top banks will need
to evolve their way of business if they are to be a significant competitor in the more
aggressive market of the future. For banks in developed markets, average customer
profitability declined by 5 percent to 15 percent since the financial crisis
1
. More stringent
banking regulations and likely increased competition from traditional and non-traditional
competitors are helping to redefine Retail Banking. In addition, customers are changing
their behavior, becoming more demanding, sophisticated shoppers. Almost half of
banking customers have increased their propensity to switch providers, and even more
will diversify relationships among banks
1
. They are able to make choices on their own,
and self control is increasing customers trust in their own wits rather than their bank.
Control, transparency and simplicity in interactions are fostered by the adoption of direct
channels, and mobile services growth is defining new needs related to in mobility
customers.
At the same time, new growth paths and trends for companies in all markets are
emerging. For example, a major US bank recently piloted a virtual branch in Japan,
with touch-screens using avatars to manage transactions and give advice. The focus was
on personalization through inventive use of technology. When it opened, the pavement
outside the branch was filled by day-long queues. In another example, some brands are
moving away from a crisis scenario, thanks to their willingness to make bold changes
in their models. In doing so, they are taking the most innovative and inspiring ideas from
the retailing sector to renew Retail Banking models, overcome key challenges and
jumpstart what we call Banking Retailization.
Banking Retailization is the morphing of the banking business with traditional retail
practices, making a retail bank more similar to a retailer that follows retail rules. It
capitalizes on the full potential of retailing for a bank. Key enablers of Banking
Retailization are:
Customer-oriented approaches, zeroing in on new customer needs, recognizing that
customers want to choose an interaction channel (and now are constantly online) and
want to pull content they are interested in.
Simplification with continuous innovation, making every interaction easy.
An integrated multichannel distribution model that allows intimacy and a unique feeling
between customer and bank.
An analytical engine, driving personalized interactions based on needs
and preferences.
In essence, Banking Retailization means to be remembered and be easily accessible.
Research for this report began with an initial assessment of inspiring innovations from
more than 40 pharmaceutical, travel and leisure and hospitality retail champions. The
effort selected 16 of the most inspiring initiatives which were divided into eight categories
(Figure 1) and presented as part of a survey of Efma member banks.
1. Analysis about the evolving banking landscape, based on a survey launched
in March June 2010 to 46 senior banking executives at 35 leading global banks.
5
Areas
Best practice
examples
Inspiring Initiatives Description Ranking
1. Next best
actions
Next correlated product
offered immediately
after purchase
Real time suggestion of correlated products a| || ,a|:|a:
mama| |a a aaa|| |.|a|a a|:a aa 11|:a|1 ,|ama||aa:
1
Predened commercial
proposal based on beha-
vioral insights as soon
as customer logs in
Genius application :a:|: ||:|: a| ma.|:J ma:|: |.|a|a :aa:a
m|: :|a,,|a a|a.|a|: aa1 |a:|:
7
Full satisfaction of a
specic need involving
own and third party
offerings
Travel offering aggregator |a aa||1 '|| |a||1a ,a:|a (1|||,
|a:a|aa:, |a|| aa1 :a| ||||a, .;
12
2. Customer
experience
differentia-
tion
through self
control
Self customer proling
Self skin proling wa:|| |aa| ||,: :a:|am|: |a1 ,|a1a:|: ||a:
||a| || |||| a1: basing on a questions workow aa1 joint sales
history of different items
2
Self product congu-
ration
Build your BMW a||aw: :a:|am|: |a :aa|a| |||| :a| :|aa:|a
ma1|, ,a|a|wa||, |a|||a|: aa1 a,||aaa|
5
Real time tracking
update
|a:|am|: :aa track their shipments a|||a || ||a:||a aama| |a ||
11|:a|1 wa:|| ,a
9
Self solution tools
CVSs self prescription management a||aw: customers to
reorder their prescription anytime and :|aa: a|wa :|a| ,|:|a,
a| |am 1||.|
Amazons PayPhrase aaa|: ,a|:|a:: aa || |mataa :|| without
knowing the credit card details
14
3. Customer
education
focusing
key lifecycle
moments
Support and education at
critical lifecycle moments
Support |a |a|| :||a|: in critical moments (,|aaa| mam:; a||:||a
|| :a| ,|a1a:| a||||a w||| value added services (.. |a :|a|
wa||:|a,: w||| :,:|a||:|:;
3
Easy education, offering
different website navi-
gation options
Need based website to |a1 a:|| ||.aa| |a|a|ma||aa aaaa| ,|a1a:|:J
||ma||: a|||:|:
13
4. Mobile
Life
Features dedicated to
In-mobility customers
Autonomous '|a|aa:|: product design .|a maa||, wish list :|a||aa
a uploading pictures w||| related |mataa ,|a1a:| suggestion
4
5. Next
generation
store

Trafc generation and
customer in-store enga-
gement to sell more
'||| interactive windows, in-store |a||a:||. displays, wait
marketing, aama| a| :||a|: w||| iPad
6
Selling third party
products in store
||a|ma:a||:a| :|a|: w||:| extended a||||a |a several products (..
1|||a| :am|a:, |||:|a a,,||aa::;
16
6. Structured
approach to
customer
experience
management
and
organization
Behavioral segmentation
to identify customer
needs
Customer behavioral segmentation, |1a|||:a||aa a| :ma|: :||||:a|
a1:, :|a:: ::|a| aa:|ma|||a |a |a1 aa| aa1 |m,|ma| a:| |aaa.a||aa:
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Customer Experience
Ofcer strong role
Customer Experience Ofce (CXO) |,a|||a |a ||, w||| ,|a,|
aa1|, |a1aa:|a || aa1a
10
7. Dedicated
approach to
Y generation
Brand, offering diffe-
rentiation, dedicated
communication
|a:a: aa brand communication \,|a|||a Y-icons |||aa| :a:|a| a|wa||
|a||a:||aa, 11|:a|1 :|a| |aaa|, |aaa.a||. wa |a||a:||aa:
In-store atmosphere (.. . :aaa1:, ||||:, 1:|a; w||:| |m|a1: a| ||
|a:||aa wa||1 aa1 || :|a|| |: :|:|1 :a||a|| w||| || |a:||aa |a1a:||
:|aa1a|1:
11
8. Social
Marketing
Social Digital Lab to
drive Viral Marketing
Dedicated unit, catalyst of a social digital strategy 1||.|a |a
:aa||aaaa:| |:| \ |a|a || a.|a|| ,|a|am
15
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Over 70 Selected most inspiring initiatives
from the retail sector
Copyright 2011 Accenture All Rights Reserved.
6
Sixty top banks from across Europe took part in the survey. The effort aimed to rank
the 16 initiatives in terms of intrinsic potential and implementation ease (organizational
impacts and investment intensity were considered as part of implementation), and to
identify key capabilities banks would develop to win in a future competitive market.
Survey outcomes show that initiatives that garnered higher scores globally are related
to customer experience improvements, multichannel model optimization, new self
control tools and customer insight.
Customer experience is the element to focus on over the next few years. Customer
experience-related initiatives achieved higher scores in terms of intrinsic potential
which emphasizes the perceived success of strategies from retail giants such as
Amazon, Best Buy and Apple. Initiatives that can be easily implemented in banks,
according to respondents, are related to customer support at critical lifecycle moments
and tools that enable self control such as customer self profiling. These capabilities
would enable banks to get closer to the customer and leverage moments of truth to
activate cross-selling propositions.
Following are the top three capabilities respondents believe banks should adopt over
the next few years:
1. Integrated multichannel distribution with easy-to-use channels.
2. Operationalized customer experience management.
3. Customer data and analytics.
The survey results underline the importance of multichannel distribution to make
customer interactions intimate and unique by proposing seamless paths based primarily
on digital and mobile innovations. This includes having a dedicated unit that:
Continuously analyzes customer attitude and is involved in all customer-facing
processes and solutions.
Extends customer information sources to new media (e.g., social CRM).
Exploits customer knowledge and makes it effective by defining an industrialized
but relevant customer dialogue.
Banks Have
Reason to Change
The evolution of Retail Banking starts with understanding the current market context
and pinpointing key bank customer trends. Doing so helps in identifying and selecting
the right retail initiatives banks should consider to get closer to the capabilities of
Retailing champions. It also highlights the opportunities and threats of failing to act
reasons for banks to change.
The following assessment provides insights on the post-crisis Retail Banking market,
highlighting key drivers, issues and imperatives for Bank Retailization.
Redefining Retail Banking
The traditional Retail Bank profit model is under pressure as shown in Figure 2. Today,
most top bankers suggest that average customer profitability has declined by 5 percent
to 15 percent since the financial crisis. This is a significant change, and probably a
static phenomenon.
Accenture Banking 2012 research
3
revealed that high performance businesses in the
banking industry must pursue a ROE of 15 percent, a considerable improvement over
the current 4 to 5 percent on average in 2009, but a far cry from the 26 percent
average for high performers between 2000 and 2007. The research also showed
that costs should be at least 20 percent lower than 2008 levels, and estimated that
ROE evolution (Retail/Commercial Bank, Developed Markets)
26%
2
High
Performer
ROE
2000-2007
Higher
Capital
Ratio
De -
leveraging
Higher Cost
of Funding
Reduced
Fee Income
NPL
Provision
Increase
Post
Crisis
Base Case
Post Crisis
Strategic
Options Case
- 5%
- 6%
- 6%
- 2%
- 3%
Pricing
Optimization/
Effective
Risk Mgmt
Robust
Customer
Management
Strategic
Cost
Reduction
Divestures
/
Inorganic
Growth
4%
15+%
Business/ Service
Model evolution or
revolution?
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7
Return on Equity evolution
Source: Accenture Research, 2010; 2) Non-cumulative
3. Analysis about the evolving banking landscape, based on a survey launched
in March June 2010 to 46 senior banking executives at 35 leading global banks.
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at least 30 percent of the cost base by 2012 will be variable as successful banks use
alliances, shared services and sourcing models more effectively. It means that the
traditional Retail Banking model is broken; banks have to focus more sharply on new
drivers. For example, efforts to restore customer profitability face new and long-term
headwinds on several fronts from customer drops in loyalty to customers new
propensity to shop around more frequently.
Customer profitability is highly dependent on banks business mix and market context.
It is also highly sensitive to difficult market conditions. The regulatory system also
contributed to the decline. Banks, particularly in Europe and North America, were
concerned about the impact of regulation on customer revenue streams, the level of
regulatory change and the constraints on their flexibility and ability to compete.
Consumer regulation is seen as a particular threat in some markets. In the developed
world, government action to stabilize the financial system has reduced the number of
large bank failures that drove a flurry of activity in the last quarter of 2008. Yet, an
extremely regulated environment helps to foster trust among customers more easily (its
a trust-based relationship).
In addition to economic model restructuring, pressure from new competitors, new
entrants and non-traditional banks (such as retailers, telecommunications operators
and energy companies) is increasing. Other industries are starting to develop financial
services offerings with good results in terms of innovation. The United Kingdoms
Tesco, one of the worlds largest supermarket chains, is already quite active in banking.
According to Progress Energys website, the United States-based company offers 10-
year, up to $20,000 in financing to residential customers for energy efficiency
8
Changes in customer profitability
To what extend has average customer profitability changed as
a result of the global financial crisis and recession?
Decreased more than 15%
11%
32%
Decreased between 5 - 15% 46%
Increased more than 15%
0%
Increased between 5 - 15%
11%
Changed between - 5 and +5%
Source: Accenture Customer 2012 Bank Executive Interviews, Spring 2010
improvements. In emerging markets, one of the most noteworthy examples is M-PESA,
a mobile banking service in Kenya developed through a partnership between
Vodafone Group and the Department of International Development. M-PESA allows
money transfers and payments through mobile phones for subscribers who do not
have bank accounts. Also, industry convergence is consequently allowing low cost
offerings by new entrants (e.g., Virgin Money) that are likely to be reinforced by the
economic downturn and customers higher sensitivity to price.
New models for more volatile, multi-connected
and autonomous customers
In recent years, customers have been more focused on service quality and personal
relationships. They are more willing to punish poor service. Also customers increasing
use of multiple channels (e.g. digital and mobility) represents a deep change in
customer behavior, suggesting that traditional solutions wont work.
Customer trust significantly eroded during the crisis. Customers show an increased
propensity to switch providers and even more to diversify relationships between
providers, based also on price sensitivity. They can easily acquire information about
products and services from multiple suppliers and opt to make choices on their own.
9
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Possible banking innovations sources
Other 5%
Technology innovators 45%
65%
43%
New entrant banks 20%
Foreign banks entering your market 18%
Existing banks operating in your market
Specialist financial service companies
(monolines, asset managers,
credit unions/savings institutions)
43%
Competitors from other industries
developing financial services offerings
Where are the main new banking product
and service innovations emerging from?
10
Yet, what they really expect from banks is differentiation on service quality and
personal relationships. In addition, self control is fostering self-trust among customers.
Some customers have high levels of confidence in choosing products and service
providers for themselves, and some may prefer to trust their own wits rather than the
bank. Advice, education and personal financial tools should be explored and
developed to give customers everything they need to make choices on their own.
Advanced techniques to improve customer service, where consumers are an active
part of the sales process, come from retailers and e-tailers. For example, Amazon
Connect functionality aims to connect authors and their readers to facilitate final
customer purchase choice. In addition to supporting sections and deep explanations
about products, in some cases it is even possible for customers to totally design the
product they want; consider BMWs car configuration and customization capability.
Customers now look for autonomy.
Control, transparency and simplicity in interactions are fostered by the adoption of
direct channels and self-service channels, allowing for more personal services and
addressing price sensitivity. Customers are increasingly more confident in accessing
direct and self-service channels for information. These include other alternative
channels, such as social media and networking sites. Increased self service, improved
transparency and greater availability of information will lead to customers demanding
even greater transparency in pricing and products. A direct consequence of this trend
is that product features will no longer be seen as a point of differentiation. In this
context, a more customer pull model, on top of pure product-based advice/
proposals, seems the natural evolution for banks to interact with customers and better
meet their needs. Customer pull means that a bank will:
Be easily accessible, dealing seamlessly and having relevant dialogue with clients.
Be oriented to satisfying customer needs.
Communicate simple and clear offerings.
Customers are accelerating their uptake of direct channels and becoming more
adventurous in their use of technology. Nearly 80% percent of customers have
increased their use of direct channels after the financial crisis and recession period.
Still, it doesnt mean a complete switching in channel usage; mostly an increase of
interaction volume. At the same time, customers using multichannels represent higher
profitable clusters. To satisfy these segments, it will be very important for banks to
recognize the new customer information they can gather through new touchpoints.
Fortunately, banks have been implementing non-branch channels for a long time now.
They usually give great attention to distribution, and have deep experience in digital
distribution that can be easily leveraged.
A key focus for bank distribution is mobile services. It is rapidly growing and banks
have been able to create and satisfy new needs related to in mobility customers.
Indeed, we are witnessing a wireless revolution enabled by technology that allows
for solid connections every time, everywhere and at broadband speed. Additionally,
11
smart devices and business models are quickly developing in the same direction and
encouraging new activities that are creating a global mobile ecosystem. All market
sectors are taking advantage of new mobile technologies to offer new experiences to
customers based on what can be easily observed in daily life: access to data,
connected with other people and use of social networks.
The technology industry continues to develop more sophisticated platforms, booming
applications and advanced capabilities. Going beyond the e era, we are now in
the m era. While the internet has almost reached a stable evolutionary level, mobile
has the potential to involve an even greater number of people and usher in a new
defining approach to customer wallet. The phone is no longer the phone, but our
alter ego; it's the extension of everything we are, according to Google. The phone
could become the wallet of the future.
All these elements clearly show how customer behavior is changing. They signal to
top banks the necessity to better understand their customers and get closer to them by
focusing on customer data to analyze customer attitudes, needs and lifestyles. Banks
could exploit CRM tools largely used by retailers to create a tailored offering based
on personalization of service and channel interactions. It requires going beyond
simple customer segmentation. For example, CAS is both a CRM and mobility
software and services provider, consequently allowing relevant synergies. Customer
multichannel interactions and data analytics should be properly explored to address
new customer needs and improve customer experience.
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Main trends in customer behavior
20%
19%
52%
49%
13%
27% 24%
Account switching
5%
43%
Savings behaviour 11% 70%
Appetite for credit
52%
28%
Use of direct channels
5%
82%
Use of branch network
Decreased Stayed the Same Increased
What main trends in behaviour have you observed concerning how
customers responded to the global financial crisis and recession?
12
How do leading retailers create distinctive customer experiences? Retail customers
recognize the company through brand, positive physical and digital interactions, and
products. These elements make the companies familiar and trigger well-defined
emotions and expectations. Generally for banks, its more complicated to respond to
such reactions because of peculiarities of the market. These include product
intangibility, institutional roles that impact customer experience, restrictive marketing
actions, etc. At the same time, however, a non-
banking perspective could offer relevant inspiration
for banks to build intimate relationships with
customers.
Moreover, now is the right time for banks to draw
from non-banking industries as new growth paths and
developing trends for companies in all markets are
clear.
Several retail revolutions are emerging, driven by an
emphasis on customers communities, solutions that
simplify life, advantages of digital channels, process
streamlining, network loyalty, brand reinforcement
and other trends in retail offerings. And some brands
are moving away from a crisis scenario, thanks to
their willingness to make bold changes in their
business models. These are some of the reasons
banks should clearly consider retailization, the morphing of a business of any kind
with traditional retail practices to evolve their model based on retail rules.
Yet, several peculiarities of banking could make Bank Retailization challenging (see
Figure 6).
Banking Retailization will require that everyone at the bank from commercial to
marketing to operations be committed to the customer agenda.
Take Apple, for instance. Apple has a laser focus on getting into the minds of its
customers and translating that insight into giving customers what they want, and how
they want it. It creates a closer customer connection. This mindset is paying off
handsomely: the sales per square foot in Apple stores have surpassed those of the
best international jewelers.
Banking Retailization:
An evolutionary or
revolutionary path?
Retailization is the
morphing of business
of any kind with
traditional retail
practices to make it
more similar to a
retailer, operating
in new ways,
following retail
rules
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Bank peculiarities
13 13
Top retailers, as shown in this report, are a step ahead in fighting for customer share
of wallet despite the changing environment. They take every precaution to evaluate
possible impacts of change on their loyal customer base before they act. Banks that
want to succeed in the future should do likewise, finding ways to differentiate the
customer experience and lower their customer defection risk. Indeed, high
performance banks will be those that offer a compelling customer experience
comprising integrated multichannel distribution and a deep understanding of evolving
customer needs: customers want to engage the bank with preferred channels, and
banks need to be equipped.
Intangible products
Regulated offering key requirements
Supply chain limited
Structural low customer engagement
High customer protection
Several requirements
Bank peculiarities Pros & Cons
Offering
Institutional Bank role
Limited purchasing frequency
Trust based relationship
Marketing often constrained
(not allowed to be provocative)
Limited interaction opportunities
Customer
relationship
Inertial revenue generation
High fixed costs
Assets sustain revenue generation despite
product sales
Sales per square meter and other similar
indicator not applied
Need to utilize capacity
Business
Model
14
Key Survey Findings
To help banks select retailing-inspired capabilities to focus on over the next few years,
60 EFMA member banks were surveyed. Participants were asked to rank 16 of the
most inspiring initiatives (Figure 1, Section 1) in terms of their intrinsic potential and
perceived ease of implementation. They also identified key capabilities that banks
should develop to be more competitive. Following are the key survey findings.
Almost 50 percent of presented initiatives are
considered top priority
Almost half of the initiatives presented obtained a high score and were placed in the
first quadrant of the Banking Retailization matrix depending on intrinsic potential and
implementation ease (Figure 7). The matrix pinpoints which initiatives are most
applicable for banking. Such high scores on a large number of initiatives confirmed
their interest to banks. Only one initiative identified received a low score. The
remaining half of the initiatives were classified into the second and fourth quadrants
for further analysis in hopes of finding interesting and inspiring elements.
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Self product confgura-
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Real time tracking
Predefned commercial
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Behavioral segmenta-
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Customer Experience
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Banking Retailization Matrix
15
Initiatives that obtained higher scores are related to customer experience improvement,
multichannel model optimization, self control tools development and customer insight.
In particular, top banks believe customer experience is the element to focus on to
achieve the best results from customers and related initiatives, such as the ones from
Amazon (See Case in Point: Amazon below), Best Buy and Apple. These received
higher scores in terms of intrinsic potential, demonstrating the perceived success of
retail champions strategies and highlighting the main gaps between the two analyzed
sectors around customer experience.
Case in Point
AMAZON
Real-time offering proposition leveraging customer analytics and social networks
Market Industry: Online retailing
Country: U.S. and worldwide
Key numbers: Largest online retailer in the U.S.
2010 Revenue: $34.2 billion
33,700 employees
65 million customers to its U.S. website per month
Mission: "To be earth's most customer centric company; to build a place
where people can come to find and discover anything they might
want to buy online
Awards: In 2010 Fortune List of 500
In 2010 S&P 100 index
Amazon in brief. Amazon is one of the leading online retailers in the world and the largest
in the U.S. It was founded by Jeff Bezos in 1994. In 1995, Amazons website became
the exclusive U.S. book retailer on the web. It started as an online book store, but
soon diver-sified, selling DVDs, CDs, MP3 downloads, computer software, video
games, electronics, apparel, furniture, food and toys.
One of the historical key success factors for Amazon is its capability to leverage
customer behavioral data. And, one of the most successful innovations in this area is
offering the customer correlated products at the point of purchase.
Business model. Amazon leverages the internet as the sole method for selling goods to
16
its consumers. Its website is designed to enable the
sale of millions of single products, some from Amazon
and others sourced from third-party vendors. Their
core strategy is to sell merchandise at the lowest
possible prices, adopting an everyday low product
pricing system and free delivery. In this way, profits
are generated from the high volume of goods sold.
Additional sources of revenues are co-branded credit
cards (e.g., MasterCard and Halifax) and several
marketing and promotional services.
We work vigorously
to earn and keep
customer trust.
Although we pay
attention to
competitors
Amazon Leadership
Principles
Users can submit their feedback
based on their experience with
products.
The feedback is commented and
rated (1 to 5), helping to make
the choice of the right product
among a wide digital offering
window easier.
Suggestions from Amazon
Customer experience is assured by continuous research on innovative digital
functionalities.
Focus on cross-selling.
Social media are a big source of information. Use them!
Key innovations. One of the first innovations allowing Amazon to become the largest
online book retailer since 2000 is Amazon Marketplace, a service that allows
customers to sell used books, CDs, DVDs and other products alongside new items.
New service offerings continued with AmazonFresh, a grocery service. Customer
food orders and delivery service is entirely customizable (e.g., location, time). Amazon
assures speediness and convenience of its offerings. The services helped Amazon to
increase its customer base and create a large community around its business.
Amazons customers have a lot in common; they follow the newest trends, enjoy digital
solutions and have a hunger for information. All customers are part of the mass market,
appreciating standard, simple digital solutions. The company continues to focus on
digital solutions and define a multitude of innovative and additional functionalities that
help them to address specific customer needs.
17
For example, customers desire
for mobile-enabled services was
addressed recently through the
Remember Me functionality.
Amazon Remember Me helps
customers to remember products
theyd like to buy by uploading
pictures of the related products
and storing them in a dedicated
folder. The capability also
provides information about
features and pricing for similar
products. After any purchase, suggestions on correlated products are provided in real-
time, leveraging dedicated promotions and seasonal campaigns. Amazon helps
customers simplify their lives and save time through Payphrase, a self-solution tool
enabling customers to make purchases on the Amazon site without sharing their credit
card details.
Users can also satisfy their love of social media through more than one Amazon service.
Amazon Connect, which began in 2006, allows book authors to directly post remarks
for customers on their book pages. They can engage in discussions with their audience
via blog.
Social media has been further exploited at Amazon with a new, high potential
functionality launched in July 2010. It is based on linking customers Amazon and
Facebook accounts. Connect with Facebook widens user information which can be
used by Amazon to recommend next products and provide suggestions about what
kind of gifts the customers friends might like by pulling in information from friends
profiles. Once the users Facebook and Amazon accounts are linked, the customer is
directed to a dedicated page showing their likes and their friends likes that are also
connected to their account. The customer can also browse friends upcoming birthdays.
Lesson learned. As a web-based store,
Amazon managed to go beyond traditional
selling methods. Its mission is to offer a
unique customer experience based on
simplicity, speed and low prices. In addition,
the power of multichannel distribution and
social media enables them to reach and
serve all customer segments. Amazon
demonstrates that innovative approaches
and functionalities are the best way to
enhance cross-selling and attract new
customers
18
Customer support and tools that enable self control are considered easily
implementable. Its necessary for banks to consider that these actions can be
developed only after customers behaviors are well analyzed and understoodso that
customer needs can be best addressed, especially during customer moments of truth.
These initiatives help organizations get closer to the customer and leverage critical
moments to activate cross-selling propositions.
The initiative with the highest score is Amazons next correlated product offered
immediately after purchase. It is one of the most innovative and customer-oriented
approaches, enhancing cross-selling in real-time. To do this, Amazon improved its
multichannel capability and explored new ways to reach customers. For example,
they leverage the power of social media to collect additional relevant data from
customers and offer them not only focused and specific products, but also new ways
to complete the purchase experience.
Customer data and analytics are required also for the Apple initiative, one that offers
customers a predefined commercial proposal based on behavioral insights. The
possible application for Retail Banking is to create and offer predefined product
bundles based on customers financial state, objectives and transactional history. The
potential of both the Amazon and Apple initiatives has not yet been fully explored by
banks due to the large amount of different data bases that would need to be integrated
to create a single, unique view of the customer.
Since banks have achieved success in using virtual channels in addition to physical
ones, their next focus will be on optimizing multichannel distribution to meet emerging
customer needs. Survey respondents get the point. They ranked highly those initiatives
related to the effective use of digital channels. The internet cannot merely be used as
an additional source of information. It is another way to serve specific customer sub-
segments. It opens up the possibility to a wide range of solutions, including self
customer profiling (such as Vichy) and self product configuration tools (such as the
BMW initiative). Through digital channels, customers can actively contribute to defining
their offering and facilitate the companys role in understanding real needs. In the
banking industry, self-control tools are still uncommon and are usually related to the
identification of product conditions (e.g. mortgage time and installment amount).
Additionally, needs-based customer segmentation is becoming more relevant and could
be adopted by various banks over the next few years.
Finally, product customization should be based on emerging behaviors and involve
the entire service model (e.g. product bundles and service for technology-addicted
customers, mobile-oriented customers and so on).
Additionally, growth in mobile adoption will be crucial in the future. Players are more
and more looking at mobile services to cover banking and non-banking needs. Due
to their extreme dedication to in-mobility customers, banks could become a key
provider of mobile applications in the future mobile ecosystem. For example, Starbucks
(see Case in Point: Starbucks below), provides applications related to education
programs, product customization and store locations to engage youth and reinforce
its brand among them. A unique experience is assured.
19
Case in Point
STARBUCKS
Digital marketing and innovation leadership
Starbucks in brief. Starbucks is the worlds
number one specialty coffee retailer, with
more than 17,000 stores. Its everywhere.
The outlets offer coffee drinks and food
items, as well as roasted beans, coffee
accessories and teas. Today through the
Starbucks Entertainment division and Hear
Music brand, the company also markets
books, music and film. Many of the
company's products are seasonal or
specific to the locality of the store.
Starbucks branded coffee is also offered
at grocery stores.
Business model. Starbucks knows well the meaning of
sell. Its not just to create astonishing products, but
to establish a unique and familiar experience with
each customer. Tailored and innovative products
obviously intrigue people, but a comfortable environment, physical and digital at the
same time, where consumers can do multiple things from enjoy their coffee and
engage in conversations with friends, to connect to WiFi for work or play is much
better. For example, Starbucks is in partnership with Apple to allow customers using
iTunes in the stores to automatically detect the songs playing in the store and download
them at a special price (Song of the day).
Market Industry: Food and beverage retailer
Country: U.S. and over 50 countries in all the world
Key numbers: 2009 Revenue: $10 billion
More than 17,000 stores and 142,000 employees
Mission: "Our mission is to inspire and nurture the human spirit one
person, one cup, and one neighborhood at a time"
Awards: Number 1 in 2010 among the Top 10 Social Networking Stars
In 2010 Fortune List of 500
Not just selling and

roasting coffee, but
serving it. - CEO
20
Suggestions from Starbucks
Make communicating with your existing and prospective customers a top priority.
Social media grant a bi-directional communication; why not learn from the client?
Each experience is a unique experience.
Starbucks is what people look for in an era where all companies continue to flood
customers with many standardized and unilateral messages through really aggressive
marketing campaigns. Starbucks customers can autonomously start their relationship
with the company, drive and close it as they prefer. This is the coffeehouse
experience.
Key innovations. Experiential brand through humanity is Starbucks mission. In a moment
of collapse in terms of store sales, the company decided to focus on innovative
approaches and defined a fully integrated social media strategy. Overall, Starbucks
social media strategy integrates many different elements. Combined together, these
elements create a social media plan that works beautifully to create millions of fans
for the brand and keep them involved in the brands activities. Starbucks has created
a bi-directional, digital dialogue with its customers, enabling people to give their
feedback and receive a response back from Starbucks addressing their concerns/
comments. Starbucks is showing its customers and potential customers that they care
about what they have to say. At the same time, Starbucks is able to:
Engage with customers on Twitter (more than 700,000 followers), answering
questions, re-tweeting and creating an open communication channel.
Upload content to its Facebook page (more than 5 million fans), including videos
and photos, and invite people to events.
Connect with more than 4,800 people on Starbucks YouTube Channel and share
with them commercials and informational videos. Visitors to the channel may embed
Starbucks videos anywhere they like on the Web (many companies dont allow this
because theyre afraid their videos might end up in places with which they dont
want to be associated).
Engage socially-minded fans through V2V.net, a community around causes their
customers care about.
Involve customers to do something good everyday by offering a product line that
donates profits to help others around the world (Starbucks Redcard).
Recruit employees through LinkedIn and train them with dedicated sessions via
YouTube.
In addition, Starbucks created My Starbucks Idea as a social network where
customers are asked to share their ideas on anything related to the company and its
products. The site gives users the ability to see what others are suggesting, vote on
ideas and check out the results.
Network users believe that they
have some role in the decision
making process of the company
and it makes them feel a part of
it. A blog is included in My
Starbucks Idea, where various
employees talk directly about
what the company is doing with
the suggestions contributed by
users.
Mobile technology is also a factor at Starbucks. In 2009, Starbucks created two
applications for the iPhone: one application includes a store locator and a menu with
nutritional information (the first food and beverage company to educate customers
with a dedicated guide); the other application allows mobile payments, displaying a
scanable code on the mobile phone screen which can also be used as a loyalty card.
Lesson learned. People want to be an active part of the environment and they like to be
involved through innovative approaches, such as social media. If each one of these
social media elements was implemented alone, then it is likely that the strategy would
not have been as successful and complete. Yet combining the various elements,
Starbucks conquered the social web. It is really all a matter of priorities: Starbucks
made communicating with their existing and prospective customers a top priority.
The remaining initiatives ranked in the first quadrant allow customer experience
improvements by focusing on customers critical moments (see Case in Point: Prnatal
below), defining a customer behavioral segmentation (such as the Best Buy initiative),
and creating a dedicated customer experience unit (such as the NH initiative).
21
22
Prnatal in brief. Prnatal is Europes largest chain specializing in products for mothers
and infants. It is owned by Artsana S.p.A., the worlds leader in baby and health and
beauty care products. Since its founding, Prnatals mission has been to offer every
customer the best chance to be the mum they want to be, at the right time and in the
best place.
Prnatal offers a wide product range and collaborates with some of the best
specialized brands in baby items, such as Avent, Chicco and Mister Baby.
Business model. Prnatal has a univocal approach in
Europe. It applies the same marketing mix in each
country in which it operates.
All Prnatal shops offer mums and mums-to-be highly
specialized and personalized assistance to reassure,
advise and keep them up-to-date. Also provided is
various information related to ancillary services, such
as nurseries, schools and social services. Customers
can meet directly with a wide range of specialists in
stores.
Prnatal constantly plans in-store
promotions and events that involve
shoppers and make shopping more fun.
For example, dedicated sessions with
specialized advisors about correct
alimentation, aromatherapy massages,
and the most comfortable clothes are
offered.
Case in Point
PRNATAL
Relevant customer education and support during key lifecycle moments
Market Industry: Retailing (owned by Italian group Artsana S.p.A. since 1996)
Country: Italy and 16 countries in Europe and Eastern Europe
Key numbers: 2009 Revenue: 301,4 million
Mission: To be useful to mothers with competence and care
We want to be
experts of the infant
world and provide
mums not only with
our product or
services, but also
with our wide
experience.
General Director
23
Suggestions from Prnatal
Never leave your customers alone: support them at critical moments.
Customer education facilitates conscious choices and makes customers feel safe
when making purchases.
The connection with mothers starts as they access the store. Prnatal stores hand out
complimentary copies of My pregnancy, a guide about the experiences of pregnancy
and early motherhood. The book is divided into three parts:
1. Useful information to understand the physiological changes of pregnancy, advice
on proper diet and insights on all necessary medical procedures.
2. Diary for recording the intense emotions of pregnancy.
3. Guide to the first forty days of motherhood with tips and tricks on body changes,
breastfeeding and minor challenges of everyday life.
Key innovations. Customer sub-segment offerings are created by considering the main
phases of motherhood. The motherhood lifecycle was analyzed to identify critical
moments and related best supporting services.
Prnatals website also is needs-oriented and organized according to customer
preferences and priorities. It gives the visitor the opportunity to browse the site
according to pregnancy phase, specific needs or particular topics.
The online channel is extremely advanced and fully supported by Web 2.0 capabilities
to increase touch points and enhance the customer experience. The Web 2.0-based
experience offers:
Chat rooms to talk directly with
other members of the community.
Forum, a space where various
topics can be discussed.
Wall comments, a free space
where the latest statements of the
members are published.
Questions and Answers, where
questions are posted by customers
and answered by Prnatal.
Polls, on-line surveys to investigate
members tastes.
24
There are also some private social network functions for community members, such
as:
Inside Twittering, a box where the members can share their thoughts and feelings.
The Blog, a place where member friends can share notes and thoughts.
Mum Diary Blog, a personal blog where mothers can share information about their
pregnancy.
Private Page, an area where ones photos and information are published.
Through the web experience, Prnatal even sends invitations to announce events.
Another successful online service is Affinity Mums, a way to find members of the
community with similar characteristics, problems and interests to share and compare
personal experiences.
A unique aspect of being part of the Prnatal community is sharing and education.
Mum is followed step by step and is able also to anticipate issues, thanks to profound
customer insight. Support is total.
Lesson learned. Critical lifecycle moments have to be supported in terms of process
simplicity, tools availability, clarity and unique relationships. Education propositions
and high specialization pull customers closer to the company. Their need for the
companys support fosters a strong intimacyone where the connection with the
company will be required even in subsequent phases.
25
Banks should also pay more attention to critical moments after the first contact. These
moments could be considered the most important phases for customers since it may
represent the first contract they will sign in their lives (typically, a bank account is
opened before a car or house purchase and is often required for accrediting job pay
checks). Customers will need to be guided by banks on the best way to address their
needs post purchase. Additionally, the customer should be supported with dedicated
meetings and specialized relationship managers prior to opening or completing
transactions, such as a mortgage or other loan. Survey findings suggest that banks
can anticipate such needs by continuously gathering information at inbound
interactions to know customer behavior and proactively serve customers in moments
of truth.
Customer behavioral segmentation is essential to more effectively meet customer needs.
It will allow banks to offer a preconfigured proposition (products and interaction model)
that can evolve based on specific customer needs. Best Buy (see Case in Point: Best
Buy below), for example, continuously monitors customer trends and identifies proper
offerings through benchmarking. Banks can update their segmentation and related
offerings, based on both trends and innovations, coming from retail champions. By
creating a dedicated customer experience unit that is involved in all sales-oriented
processes, banks can reach high levels of customer intimacy through unique
experiencesas NH does.
Case in Point
BEST BUY
Increasing customer experience through effective segmentation and monitoring
Market Industry: Retail electronics
Country: United States (also operates in Mexico, Canada, China, Turkey
and UK)
Key numbers: Number 1 consumer electronics retailer in U.S.
Revenue 2010: more than $50 billion (CAGR99-09 +15% )
About 1,200 stores and 180,000 employees
Mission: "Our formula is simple: were a growth company focused on
better solving the unmet needs of our customersand we rely on
our employees to solve those puzzles. Thanks for stopping. "
Awards: Selected for 2010 Fortune List of 50
#56 in 2009 Fortune List of 500
26
Best Buy in brief. Best Buy Co., Inc. is the largest
consumer electronics retailer in the United States. It
also operates as a retailer of home office products,
entertainment software, appliances and related
services in a non-commissioned, sales environment.
The companys stores offer video and audio products,
but also service contracts, warranties, repair and delivery. Its distribution model is
mainly based on retail stores and call centers, as well as online websites operating
under various brand names (e.g., Best Buy,
Future Shop, Geek Squad, Magnolia
Audio Video) that leverage various features
characterizing each subsidiary.
Business model. Best Buy focuses on customer
centricity through continuous innovation
deployment driven by customer needs and
behaviors. Its concept of customer centricity
configures touch points around customers
to meet the needs of the particular segment
that predominates that channel. It
continuously updates and monitors needs-
based segmentation to quickly transform its
business for a specific customer segment.
Key innovations. Benchmark and market analysis confirm that high value customers are
primarily professionals, singles, and technology addicts looking for individuality and
self-expression. This has encouraged Best Buy to focus on innovative solutions based
on digital channels, social networks and mobile solutions. In 2010, for example, the
company started to apply location-based marketing that uses the Foursquare solution.
Only by downloading this application on their mobile phone or checking in a Best
Buy store can customers receive dedicated offers. Since August 2010, Best Buy has
experimented with another innovative initiative with the help of Shopkick, a Silicon
Valley-based mobile meets retail startup. The offline solution guarantees that a user
is truly present in the retail location and rewards him/ her based on foot traffic.
Consumers can be rewarded not just for shopping, but simply for walking into a store.
As the consumer walks through the door, the Shopkick Signal is detected and the
shopper instantly receives rewards, called kickbucks. These may include Facebook
credits, immediate in-store cash-back rewards at Shopkick partner stores, magazine
subscriptions, special in-store deals, added bonuses for scanning barcodes of specific
products, and even donations to charities. Retailers pay Shopkick only for those
consumers who walk into their stores with the Shopkick application that recognizes
the in-store Shopkick Signal system, similar to the cost per click, traffic-based online
business model. This is a truly mobile use case. It clearly shows the relevance of
connectivity for Best Buy and their increasing investments in innovative channels.
Were able to create

solutions around a
customer desire. -
CEO
27
Other innovative initiatives have been developed to support customers along their
journey. These include the social media tool Twelpforce, where a group of Twitter-
using employees respond to customer questions and complaints in real time, and the
Best Buy IdeaX, an online community where customers can suggest ways to improve
service quality and provide new innovative ideas.
Stores also are continuously monitored to understand frequent customer needs and
can be transformed by using different types of signage, fixtures, lighting and even
uniforms. Another key element of Best Buys strategy is people; depending on
customers needs, capabilities are prioritized and properly built. Employees are
precisely identified and trained to be closest to the customer and be part of a unique
customer experience. Segmented teams follow their customers and share ideas with
them. For example, a young mother will be the right assistant to another mother
looking for a gift for her child. Everyone is put in the right role.
Lesson learned. Best Buy leverages its core business as the primary customer need (the
connectivity), and creates a fully integrated customer-centric
environment to become a global service provider, not just a
product seller.
Following this perspective, customer data plays a critical role
and becomes a key driver of business decisions. Technological
and human resources are the enablers, allowing the company
to drive innovation and fuel growth. As customers get in touch
with Best Buy, their engagement is assured thanks to a high
quality customer experience involving the entire service model.
Suggestions from BestBuy
Customer behaviors drive business decisions; follow them!
Be ready to change to increase customer experience, leveraging technology
innovations.
Be everywhere, but focus on most profitable.
28
The best set of initiatives also includes some innovations related to the physical
channel. This is likely due to the relevance that bank branch stills hold. Its central role
is recognized by top banks. In this case, some initiatives based on new technology
support also ranked high. These include iPad use at Ritz Carlton hotels, and interactive
displays or video use at Puma and Levis stores. Banks are already moving towards
this approach; some are using interactive windows to increase in-branch traffic and
videos to illustrate product catalogues inside the branch. A renewal of branch layout,
based on customer needs (e.g., self service area, area for simple transactions with
cashier support and meeting area), could be optimized through additional technology
adoption. For example, branch greeters might use an iPad to show customers new
products or upcoming events, or help them to complete simple actions for the sake of
time and convenience. This enables a multi-channel approach and improves the
customer experience. It is a clever way to attract new targeted customers.
Also, initiatives aim at dedicated offerings for specific sub-segments have achieved
high scores. They emphasize the importance of addressing customer needs (see Case
in Point: Armani below).
Case in Point
ARMANI
Self configuration and dedicated approach to Y generation
Market Industry: Fashion
Country: Italy and over 45 countries worldwide
Key numbers: One of the world's leading fashion and lifestyle design houses
Consolidated Revenue: 1,518 million (revenues including
licensed products: 6 billion)
5,000 direct employees, 13 factories, 500 exclusive retail stores
Mission: "Continually create clothes and accessories that aspire to a kind
of perfection that transcends fashion
Awards: ELLE Award as The Best International Designer of the year (2006)
Armani in brief. Giorgio Armani S.p.A. is
one of the world's leading fashion and
lifestyle design houses. It designs,
manufactures, distributes and retails
fashion and lifestyle products, including
apparel, accessories, eyewear,
watches, jewelry, home furnishings,
fragran-ces, mobiles and televi-sions
My philosophy is to help
women and men feel
comfortable and confident
through the clothes that they
wear, rather than to create
decoration for the sake of it.
- CEO
29
(with Samsung S.p.A.), and cosmetics
under a wide range of brands.
With approximately 500 stores
worldwide, the Group's exclusive retail
network currently comprises: 81 Giorgio
Armani boutiques, 171 Emporio Armani
stores, 17 Armani Collezioni stores, 165
A/X Armani Exchange stores, 16 AJ
Armani Jeans stores, 6 Armani Junior
stores and 33 Armani Casa stores in 46 countries.
Giorgio Armani S.p.A. stands out as one of the few remaining independent, privately-
owned companies in its sector, with a proven business strategy that has capitalized
on the worldwide power and potential of the Armani brand name.
Business model. Mr. Armani's philosophy of fashion and style, together with his
entrepreneurial ability, has been central to the success of Giorgio Armani S.p.A. He
oversees both the company's strategic direction and all aspects of design and creativity.
Armani focuses on the continued evolution and expansion of its brand, and aims to cover
various sectors driven by young needs and behaviours. In the five years from 1998 to
2003, the Armani Group has spent upwards of 600 million on the evolution of its
manufacturing base, the expansion and renovation of its retail network, the diversification
of its product lines and the enhancement of its headquarters facilities in Milan.
The strategic positioning allows Armani to face the volatile changes in the market,
founding its success on customers loyalty and its brand
strength. Collections are always housed in dynamic
structures with sober yet refined shades of warm grey
and night blue colors. Everything perfectly embodies
the denim and casual chic spirit of the brand. The
refined theme of Giorgio Armani stores is the creation
of an intimate personal space, built to offer customers
a unique customer experience.
In addition, many events every year are organized to
increase brand awareness and build a strong
community with shared values among young people.
Suggestions from Armani
Expand your market towards those sub-segments you can better serve.
Deliver a dedicated brand, communication and offering to high potential customers.
Engage Ever in Contact functionalities that leverage mobile and social network
interactions
30
Key innovations. Armani Exchange is the
brand uniquely dedicated to young
customers. It expresses its vision of a
young, independent and casual
lifestyle. Communications connect with
Y-icons (e.g., popular singers or
actresses, such as Megan Fox, and
football players, such as Cristiano Ronaldo). In this way, Armani instills in the young
customer a big sense of belonging, inspiring them through idols to imitate.
In accordance with target customers behavior, the use of mobile and social media is
extremely developed to inform and educate customers and strengthen brand loyalty.
Armani Exchange YouTube Channel is among the top 50 most seen every week
(currently 40) and counts almost 2,000 members and over 2 million visualizations. In
this channel, youth can be informed about product promotions and events.
All channels are effectively integrated. Its possible to buy an item online and then pick
it up in the preferred store. This multichannel approach allows customers to choose
from a wide set of purchase experiences.
Products are presented to make the on-line experience more similar to the in-store
experience. It allows customers to customize their products. For example, Armanis
How to Wear and Virtual Dressing Room enables customers to combine various
products to create their style, choosing among all available clothes to offer an in store
like web experience.
The site is also extremely rich in high technology-enabling tools. For example,
customers can listen to music or play and download videos of collections and events
to be Ever in Contact with the brand, and a mobile application allows young
customers to access content and services, proceed with purchases and receive
customized promotions, if registered.
The brand communicates very effectively through all social media, especially Facebook
and Twitter. Armani Exchanges Facebook page has almost 1.5 million Likes and
Follows it. Fans can be informed about new products and shows, and also be invited
to special online events. The same for its Twitter page; with almost 10,000 followers,
Armani can connect better with customers, predominantly Americans where this social
network is most popular.
Lesson learned. Youth are more apt to like style, fun and technology, seek out whats hot,
make purchases based on image, consume all types of digital media and use every
wireless service on their mobile phones. Gen Yers want to feel free to build their
product experience by themselves and Armani Exchange is totally happy to meet this
need. To address the needs of a specific sub-segment, companies should design an
experience just for it: channels, product offerings, staff and communications are all
involved.
31
Initiatives with lower intrinsic potential include the Social Digital Lab from Starbucks
and selling third-party products in store from Boots. Social media is still considered
by banks as a low-value channel despite the perception that its adoption in the retailing
sector grows day by day. Skepticism from top banks is probably caused by difficulties
in measuring and monitoring results. Several tools are allowing organizations to now
link investment in social media with resulting ROI. The value added, however, is the
increase in customers involvement that makes them feel an active part of the banks
innovation. They can contribute by using social media and can continuously interact
with the team behind the blogs and sites. Interactions occurring through this strategy
are usually very frequent, allowing for a better understanding of customer needs. The
potential of initiatives such as the digital lab have still not been explored by banks,
and initial investments seem to be too high to bet on this new approach. The required
effort to develop a social media strategy, on the other hand, is not as high. Still, the
assumption is that most banks are not yet ready.
Widening a banks product range is an initiative that didnt inspire survey respondents.
This is probably due to the fact that banks dont have physical suppliers. Managing
a new production chain with logistics and storage tasks could be stiff. In addition,
there is also a potential human resource issue due to the nature of bank employees
contracts. A new contract that allows for selling goods is not applicable and, at the
same time, engaging dedicated sellers in a moment where branches are reducing
their sales force is even less desirable.
32
Based on the survey, the main differences between large and small-medium banks are
related to mobile, customer experience management and self product configuration
initiatives.
Large banks consider features dedicated to in-mobility customers (e.g., initiative #4
in Figure 8) to be difficult to develop: they have already reached the Level II migration
wave, having already developed basic mobile banking functionalities. Thus they now
have to focus on innovative solutions also leveraging non-banking functionalities and
create, for example, a mobile ecosystem by providing advanced and highly dedicated
features based on customers needs. To do so, they would likely explore new frontiers
such as new payment systems and geo-localization solutions. Small and medium
banks, on the other hand, are probably still at a Level I migration wave, and still open
to the mobile channel.
Creation of a Customer Experience Office (e.g., initiative #10 in Figure 8) is
considered easier to be implemented by large banks than by small-medium banks.
Small and medium banks consider self product configuration (e.g., initiative #5 in
Figure 8) very difficult to implement, though they view it as a high potential initiative.
Top banks already have some advanced tools that enable limited product changes,
and are equipped with highly specialized technology units and strong IT infrastructure.
Large and small-medium
banks differ along mobile,
customer experience
and self-service
33
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Main differences between large and small-medium banks
34
Key capabilities
to win in the future
An analysis of key capabilities that banks should consider in developing more
competitive retail models (Figure 9) shows the importance of distribution. 90 percent
of respondents selected distribution as a top priority. Customers want to deal with
banks through preferred channels (the customer chooses the channel, the bank cannot
impose its preferences). Based on current customer trends and behavior, an integrated
multichannel distribution model that takes advantage of various channel features,
functions and potential, is required.
Operationalizing customer experience management is also considered very critical
over the next few years. Eight out of 10 respondents believe that a well structured
approach targeting the customer experience across all sales processes is now required.
Banks need to invest in innovation, with a trial and error mode, with pilots to test
on the ground potential solutions.
Customer data and analytics continue to be considered critical sources of customer
information to assess and anticipate potential needs.
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Integrated multi-channel distribution
and easy to use channels
Customer experience management
operationalization
Good customer data and analytics
Strong brand
Strong innovation capabilities
Transparent products
Competitive pricing
Real time leads across channels
Traditional and social digital
marketing fully integrated
Risk management across channels
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Capabilities
[question: Please choose 5 capabilities out of the following 10 that a Bank needs to develop to
win in a future with a more competitive market (% of respondents who selected the capability)]
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Capabilities to win in the future
35
Retail-inspired initiatives
Scanning more than 40 leading Retail companies
The ideas considered most applicable were found in the pharmaceutical, travel and leisure and
hospitality industries. Taking inspiration from these markets, eight main areas were identified and
analyzed.
Areas
Best practice
examples
Inspiring Initiatives Description Ranking
1. Next best
actions
offered immediately
after purchase
Real time suggestion of correlated products a| || ,a|:|a:
mama| |a a aaa|| |.|a|a a|:a aa 11|:a|1 ,|ama||aa:
1
Predened commercial
proposal based on beha-
vioral insights as soon
as customer logs in
Genius application :a:|: ||:|: a| ma.|:J ma:|: |.|a|a :aa:a
m|: :|a,,|a a|a.|a|: aa1 |a:|:
7
specic need involving
own and third party
offerings
Travel offering aggregator |a aa||1 '|| |a||1a ,a:|a (1|||,
|a:a|aa:, |a|| aa1 :a| ||||a, .;
12
2. Customer
experience
differentia-
tion
through self
control
Self customer proling
Self skin proling wa:|| |aa| ||,: :a:|am|: |a1 ,|a1a:|: ||a:
||a| || |||| a1: basing on a questions workow aa1 joint sales
history of different items
2
Self product congu-
ration
Build your BMW a||aw: :a:|am|: |a :aa|a| |||| :a| :|aa:|a
ma1|, ,a|a|wa||, |a|||a|: aa1 a,||aaa|
5
Real time tracking
update
|a:|am|: :aa track their shipments a|||a || ||a:||a aama| |a ||
11|:a|1 wa:|| ,a
9
Self solution tools
CVSs self prescription management a||aw: customers to
reorder their prescription anytime and :|aa: a|wa :|a| ,|:|a,
a| |am 1||.|
Amazons PayPhrase aaa|: ,a|:|a:: aa || |mataa :|| without
knowing the credit card details
14
3. Customer
education
focusing
key lifecycle
moments
Support and education at
critical lifecycle moments
Support |a |a|| :||a|: in critical moments (,|aaa| mam:; a||:||a
|| :a| ,|a1a:| a||||a w||| value added services (.. |a :|a|
wa||:|a,: w||| :,:|a||:|:;
3
Easy education, offering
different website navi-
gation options
Need based website to |a1 a:|| ||.aa| |a|a|ma||aa aaaa| ,|a1a:|:J
||ma||: a|||:|:
13
4. Mobile
Life
Autonomous '|a|aa:|: product design .|a maa||, wish list :|a||aa
a uploading pictures w||| related |mataa ,|a1a:| suggestion
4
5. Next
generation
store

customer in-store enga-
gement to sell more
'||| interactive windows, in-store |a||a:||. displays, wait
marketing, aama| a| :||a|: w||| iPad
6
Selling third party
products in store
||a|ma:a||:a| :|a|: w||:| extended a||||a |a several products (..
1|||a| :am|a:, |||:|a a,,||aa::;
16
6. Structured
approach to
customer
experience
management
and
organization
Behavioral segmentation
to identify customer
needs
Customer behavioral segmentation, |1a|||:a||aa a| :ma|: :||||:a|
a1:, :|a:: ::|a| aa:|ma|||a |a |a1 aa| aa1 |m,|ma| a:| |aaa.a||aa:
|a :a||:| a1:
8
Customer Experience
Ofcer strong role
Customer Experience Ofce (CXO) |,a|||a |a ||, w||| ,|a,|
aa1|, |a1aa:|a || aa1a
10
7. Dedicated
approach to
Y generation
Brand, offering diffe-
rentiation, dedicated
communication
|a:a: aa brand communication \,|a|||a Y-icons |||aa| :a:|a| a|wa||
|a||a:||aa, 11|:a|1 :|a| |aaa|, |aaa.a||. wa |a||a:||aa:
In-store atmosphere (.. . :aaa1:, ||||:, 1:|a; w||:| |m|a1: a| ||
|a:||aa wa||1 aa1 || :|a|| |: :|:|1 :a||a|| w||| || |a:||aa |a1a:||
:|aa1a|1:
11
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36
The 16 most inspiring initiatives from Retail champions were placed in one of four
quadrants in a Banking Retailization matrix based on respondents scores:
1. Put in fast track high-score initiatives that banks should consider first
2. Develop and apply high-potential initiatives whose implementation could be difficult
3. Save selected ideas viewed as easily implemented, but with low potential success
4. Others initiatives with lowest scores
Following are details of the initiatives based on their mapping.
Mapping the 16 most
inspiring initiatives
from Retail champions
Put in fast track quadrant
NEXT CORRELATED PRODUCT OFFERED IMMEDIATELY AFTER PURCHASE :
Real-time suggestion of correlated products at the purchase moment to be bought
leveraging also dedicated promotions
Business objective:
Maximize the number of products sold by proposing the next correlated product
immediately after purchase
Enabling factors:
After the research of a product, Amazon
immediately suggests the next correlated
product.
Highlighting the Frequently bought
together packages, Amazon stimulates
the purchase of suggested bundles
promoting special prices
37
SELF CUSTOMER PROFILING:
Self skin profiling website tool helps customers find product lines that fit their needs
based on a questions workflow and joint sales history of different items
Business objective:
Leverage customer self profiling on
the web to offer tailored products
and services customized for each
profiled cluster
Enabling factors:
Vichy launched the Self skin
profiling website tool that, through
a self profiling process based on 5 steps, helps customers find products that best fit
their needs
Based on the self profiling results, the company suggests specific treatments through
its products and provides tailored advice and tips
SUPPORT AND EDUCATION AT CRITICAL LIFECYCLE MOMENTS:
Support to target clients in critical moments (pregnant mums) enriching the core product
offering with value added services
Business objective:
Give support to target clients at critical moments enriching the core product offering
with value added services
Enabling factors:
Prenatal is specialized in the sale of
products for pregnant mothers, mothers
and children, and offers to customers free
in-store support for:
Assistance and consultancy in relation to
the pregnancy and indications about
medical routines necessary for the mother
Information regarding available
proximity services (nursery school)
Meetings with specialists exclusively
reserved for new parents, which take place
directly in stores Web 2.0 experience:
Chat to share real-time opinions
Q&A section where mothers can insert
specific questions and receive relative
answers from other mothers
Dedicated forum with experts
38
SELF PRODUCT CONFIGURATION:
Build your BMW allows customers to configure their car choosing model, paintwork,
interiors and options
Business objective:
Maximize the number of products sold by engaging customers to
combine different products and features offering them the freedom
of self control
Enabling factors:
BMW, by creating the Build
your car website service,
offers the opportunity to
configure your car in a few clicks: model,
paintwork, interiors and options selection
REAL-TIME TRACKING UPDATE:
Customers can track their shipments entering the Tracking number in the dedicated
website page
Business objective:
Give customers the option to keep track of their orders in real-time assuring a high
level of visibility and control
Enabling factors:
FedEx allows customers to track their shipments (from pick up to delivery) by simply
entering the Tracking number in the dedicated website page
An additional free service allows registered users to monitor all their shipments at the
same time and to receive proactive notifications regarding delays, failed deliveries,
proof of delivery, etc.
39
FEATURES DEDICATED TO IN-MOBILITY CUSTOMERS:
Autonomous Starbucks product design via mobile; wish list creation by uploading pictures
with related Amazon product suggestion
Business objective:
Offer mobile users the possibility to access personalized and
customized services through their handset
Enabling factors:
Amazon developed the wish list function: customers can upload
pictures of what they would like to buy and store them in a dedicated
Remember folder
Starbucks developed a tool that lets customers design their products
autonomously on the basis of specific needs (e.g. diet, Kcal) and allows
them to order and pay for it
Zoopla offers a mobile application that leverages augmented reality: customers can find
available spaces for rent, their prices, descriptions by simply pointing their mobiles at a
building or city block
TRAFFIC GENERATION AND CUSTOMER IN-STORE ENGAGEMENT TO SELL MORE:
Street interactive windows, in-store interactive displays, wait marketing, engagement of
clients with iPad
Business objective:
Attract customers during store visits and take advantage of waiting times
Enabling factors:
Street interactive windows
Puma installed plasma windows thus increasing in-store traffic attracting new targeted
customers
Interactive displays in-store
GSA leverages interactive displays to give customers easy access to information
regarding top segment products (e.g. interactive displays for wines)
Wait marketing
In order to exploit customers waiting time McDonalds
leverages in-store digital screens to keep customers
informed and educated, to entertain them or launch
products and promotions
Engagement of clients with iPad
Several Hotel chains offer customers the availability of
iPads in shared areas (e.g. restaurant) in order to give
customers the control of the hotel services (e.g. virtual
concierge, restaurant menu, taxi reservation, on-line
newspapers, loyalty program management)
40
Develop and apply quadrant
BEHAVIORAL SEGMENTATION TO IDENTIFY CUSTOMER NEEDS:
Customer behavioral segmentation, identification of segments critical needs, cross
sector benchmarking to find and implement best innovations to satisfy needs
Business objective:
Differentiate customer experience focusing on high value segments and how to address
their needs
Enabling factors:
Definition of customer behavioral segmentation identifying relevant segments in terms
of current and future profitability
Identification of key segment needs and solutions to address them
Evaluation of competitors and cross industry players in terms of specific
solutions to address needs (e.g. planning tool for self control needs; blogs
for comparison needs, etc.)
PREDEFINED COMMERCIAL PROPOSAL BASED ON BEHAVIORAL INSIGHTS AS SOON
AS CUSTOMER LOGS IN:
Genius application suggests lists of movies/ music leveraging consumers shopping
behaviors and tastes
Business objective:
Maximize the number of products sold through predefined
commercial proposals offered as soon as the customer logs-in
Enabling factors:
Apple company developed an application which suggests lists
of movies/ music to be bought from the digital media player
store, leveraging consumers shopping behaviors and tastes
Information on customers purchase history and library contents are exploited for the
suggestion of additional tracks/ movies that better fit the customers preferences and
tastes (recommended or missing products)
41
CUSTOMER EXPERIENCE OFFICER STRONG ROLE:
Customer Experience Office (CXO) reporting to CEO, with proper budget, influencing
CIO agenda
Business objective:
Spread out a pervasive customer-oriented culture through the creation of a CXO unit
reporting to top management
Enabling factors:
CXO acts as an independent entity with functional experts (e.g. channel, processes,
products) and has Customer Experience people sitting in the business areas
Regarding products and channels, the CXO plans multichannel customer journeys,
service levels, training requirements
Customer Experience people actively participate in the design of new processes/
products
CXO measures customer experiences, influences the Board agenda (monthly reporting)
BRAND, OFFERING DIFFERENTIATION, DEDICATED COMMUNICATION:
Focus on brand communication exploiting Y-icons through
social network interaction, dedicated store layout,
innovative web interactions and in-store atmosphere (e.g.
sounds, lights, design) which reminds of the fashion world
Business objective:
Target young customers with a dedicated brand,
communication and offering (product and distribution)
Enabling factors:
Giorgio Armani launched a dedicated brand inspired by
casual and urban life to reflect Y-gen values
Brand communication exploiting Y-icons (e.g. popular singers)
through social network interaction, digital content and innovative website features (e.g.
music and video download)
Events in disco clubs and lounge bars to increase brand awareness
Abercrombie & Fitch creates an in-store atmosphere (e.g. sounds, lights) which recalls
the fashion world and the staff is selected coherently with the fashion industry standards
(e.g. tall, good-looking)
In-store music is played by brands dedicated radio. Number of people can enter is
limited: big queues attract new customers and increase expectancy
42
FULL SATISFACTION OF A SPECIFIC NEED INVOLVING OWN AND THIRD
PARTY OFFERINGS:
Travel offering aggregator to build the holiday
package (flight, insurance, hotel and car hiring,
etc.)
Business objective:
Full satisfaction of a specific need by combining
the companys own product offering as well as
third party offerings
Enabling factors:
EasyJet during the flight ticket purchase gives customers the possibility to:
add flight options (e.g. travel insurance, luggage check-in, Fast Track, carbon
offsetting)
book a hotel for the stay
book a car in the arrival airport
Put in fast track quadrant
EASY EDUCATION, OFFERING DIFFERENT WEBSITE NAVIGATION OPTIONS:
Need based website to find easily relevant information about products/ thematic
articles
Business objective:
Educate customers by organizing the websites navigation
according to customer preferences and priorities
Enabling factors:
Prnatal offers customers three different types of navigation
on its website
Browsing according to pregnancy phase: Navigation by
number of pregnant weeks or baby age
Browsing by need: Website exploration based on clients needs to easily find
relevant information regarding products/ thematic articles (e.g. give birth, follow a
diet, work while having a baby)
Browsing by theme: Website exploration based on most popular thematic categories
(e.g. my baby, being mum, house)
43
SELF SOLUTION TOOLS:
CVSs self prescription management allows customers to reorder their prescription
anytime and choose between store pickup or home delivery, and Amazons
PayPhrase enables purchases on the Amazon site without knowing credit card details
Business objective:
Strengthen customer loyalty and stimulate
repurchase by leveraging online self control
and planning tools
Enabling factors:
CVS launched the Self prescription management tool through which customers can
reorder their prescription anytime and can select between home delivery and picking
up the products from a store
Amazon launched an Advanced spending monitoring tool that permits the head of
the family to let his children make purchases on the company website, without having
to insert the credit card details
SOCIAL DIGITAL LAB TO DRIVE VIRAL MARKETING:
Dedicated unit, catalyst of a social digital
strategy driving to continuously test and learn
the overall program
Business objective:
Acquire new customers, increase cross selling
to existing ones through social media presence
Enabling factors:
Creation of a dedicated unit, catalyst of a social digital strategy (part of comprehensive
marketing strategy), driving to continuously test, learn and adjust the overall program
Sentiment analysis, real time monitoring and automatic alerting to react to critical
comments
Use of main social media (e.g. Facebook, YouTube, Twitter) to create communities of
fans that may physically meet
44
Others quadrant
SELLING THIRD PARTY PRODUCTS IN STORE:
Pharmaceutical stores which extended offerings to additional products (e.g. digital
cameras, kitchen appliances)
Business objective:
Sell products of third parties by exploiting the stores position and available space in
order to increase revenues
Enabling factors:
Boots, starting in the 90s, has sold products of other industrial sectors
The company is currently specialized in selling pharmaceutical, healthcare and beauty
products, but also offers a wide range of products which are far from its core business
(e.g. digital cameras, kitchen appliances)
45
Conclusion: Banking
Retailization Next Steps
The research highlighted three major areas banks want to consider (see Figure 10):
1. Multichannel and easy-to-use channels that transform connections with customers,
allowing more intimate relationships through tailored and simple channel paths (be
easily accessible).
2. Customer experience management to systematically focus on customers perceptions
and reactions (be remembered).
3. Customer data and analytics to multiply interactions of interest to clients, substantially
increase conversion rates, and make customer conversations meaningful for clients
(be relevant for clients).
Multichannel and
easy to use
channels
Customer
experience
management
Customer data
and analytics
channels
experience
3 main capabilities
Customer
easy to use
Multichannel and
easy to use
experience
Self customer profiling
3 main capabilities Inspiring innovations fr
Features dedicated to In-mobility customers
Self product configuration
Suppor
Customer Experience Officer strong role
Customer
Multichannel and
Self customer profiling
om Retailing Inspiring innovations fr
Self product configuration
t and education at critical lifecycle moments Suppor
om Retailing
t and education at critical lifecycle moments
management
and analytics
Customer data
experience
management
and analytics
Behavioral segmentation to identify customer needs
Next correlated product offered immediately after purchase
behavioral insights as soon as customer logs in
Predefined commercial proposal based on
Customer data
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Key capabilities and related innovations from Retailing
The selected initiatives have the power to reshape the way banks serve customers,
better understand their needs, drive cross-selling while improving the experience.
Banks can manage current customer volatility by designing ad hoc propositions no
longer based on traditional organizational customer segmentation, but on strategic
segmentation. New customer trends, and related buyer values and behaviors, are key
to identify new service models to attract and engage clients. Taking inspiration for
example from Best Buy experience, banks could identify a set of possible options related
to first point of contact (e.g. branch vs. internet), primary mode of proactive sales (e.g.
a number of meetings at a branch with RM vs. direct sales), channel for simple
transactions (e.g. customer assistant vs. mobile banking), possible approaches for
complex requests (e.g. full RM involvement vs. video conference with remote specialists),
and support in post-sale processes (e.g. Contact Center vs. Premium customer service).
46
A modular approach is required to satisfy the shopping around customer. Customers
define the service model and the bank needs to ensure related flexibility.
Key enablers of new service models are:
Digital marketing (web, mobile, social media).
Marketing factory powered by analytics, driving real time event management.
CRM and multichannel architecture enabling seamless experience (including Social
CRM).
Retailing experiences like Amazon are showing the power of Social CRM: social
media are not new channels, but a new way to understand customers and interact
with them.
Banks also have the option of creating an ecosystem with players in different industries
like retailers, telcos, entertainment companies, hotels and restaurants, transportation
companies, etc. Such a strategy could help increase customer interactions, providing
the opportunity to enrich customer profiles and therefore engage customers with more
accurate insights.
These are just some possibilities, derived from the Banking Retailization survey, for
banks to consider in determining how best to evolve their service models or define a
new banking concept after the crisis period.
47
Survey Methodology
More than 60 banks from across Europe participated in the survey (Figure 11).
The survey effort aimed to identify and rank the most inspiring initiatives from the
retailing sector and present them to banks. After an initial scanning phase of about
40 leading firms, more than 70 innovations were analyzed to understand how they
could contribute to Bank Retailization. Firms were chosen for their market leadership
position based on revenues and a customer experience index.
Scandinavian Countries (Scand)
Norway, Sweden
Western Europe (WE)
Austria, Germany, Ireland, United
Kingdom, France, Switzerland
Central Europe (CE)
Bosnia Herzegovina, Croatia,
Czech Republic, Estonia, Latvia,
Poland, Slovakia, Slovenia
Eastern Europe (EE)
Bulgaria, Romania, Russia,
Ukraine, Kazakhstan
Southern Europe (SE)
Portugal, Spain, Italy, Greece, Turkey
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Survey participants
The most interesting initiatives from the identified top retailers were proposed in a
survey of top banks from across Europe, including Austria, Belgium, Bosnia and
Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, France, Germany, Greece,
Ireland, Italy, Kazakhstan, Latvia, Norway, Poland, Portugal, Romania, Russian
Federation, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and
United Kingdom. Target respondents were identified among heads of retail, marketing,
strategy, customer satisfaction, CRM and equivalents. Evaluations were based on
the applicability and potential of the customer initiatives to increase revenues and
cross-selling at banks.
48
The survey was divided into three main sections:
1. Demographics and key characteristics of the respondent bank.
2. Select innovations to be assessed. The questions aimed at gathering information
regarding the intrinsic potential (both in the short, medium and long term) and the
implementation easiness of the initiative applied to the banking industry. This part
was presented through a brief description of each initiative, an extract of the main
highlights in terms of business model and related enabling factors. Since many of
the proposed initiatives are not yet developed in banks, respondents tried to imagine
a new concept or model for their company.
3. Capabilities to be developed by the banks to compete in the future.
Once answers were collected and analyzed, a Banking Retailization matrix was
developed based on four quadrants, depending on their score relative to intrinsic
potential and implementation easiness (Figure 12). The matrix facilitated identification
of initiatives to be potentially applied to the banking sector.
Key initiatives were placed in the first quadrant Put in fast track, with a higher score
for both drivers. Banks should consider these first and plan the implementation in their
agenda based on internal priorities and objectives.
Initiatives with very high potential, but whose implementation could be difficult, were
placed in the second quadrant. In this case, the suggestion is to Develop and apply
the identified initiatives, deepening it and identifying new approaches to reduce
impacts on the organization and on economics.
The forth quadrant identifies initiatives to be contextualized in the company strategy
because implementation seems to be easy, but in general potential success is evaluated
as not high. This is strictly linked to bank objectives and could change from bank to
bank.
In addition, from each initiative that could be identified a single successful action the
company would implement, it was indicated as Save selected ideas. Finally,
initiatives with lower potential and higher implementation impacts are in the third
quadrant and shouldnt be considered (Others) by Top bankers as inspiring initiatives.
49
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INTRINSIC POTENTIAL
Save selected ideas Save selected ideas Put in fast track
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T
A
Initiative B
Initiative A
Initiative C Initiative C
I
M
P
L
E
I
M
P
L
E
INTRINSIC INTRINSIC
Others
C POTENTIAL C POTENTIAL
Develop and apply
Initiative C
Develop and apply
Initiative C
F
i
g
u
r
e

1
2
Banking Retailization matrix example
When reviewing the survey findings, a number of definitions should be applied:
Innovative and inspiring initiatives from best retailing players were selected and
proposed in the survey as possible applications in retail banking; these initiatives
are presented in Retail-inspired initiatives.
Non-banking sectors (e.g., pharmaceutical, travel and leisure and hospitality) were
scanned to identify possible innovations for banks.
Top retailing players and champions represent leading practices that could possibly
be taken as inspirations to identify possible innovations.
The retail banking sector is the target market to which survey has been submitted.
50
Acknowledgements
We would like to extend a special thank to all of the retail banks and individuals
who participated in our Banking Retailization Survey and also to thank the
following teams and individuals for helping to compile this report:
Unicredit team, with special thanks to Roberto Nicastro, Frederik Geertman, Gianluca
Finistauri, Asli Duzenli, Nicolas Hoffbeck, Alessandra Rocchi, Emanuele Cacciatore,
Carmelo Minardi and Stefano Ibba for participating to the all discussions to identify key
inspiring cross-selling initiatives, define survey key points, analyze related outcomes and
fine tune the overall report.
Accenture global team, with special thanks to Noel Gordon, Janet Hoffman, Susan Mann,
Gianmaria Trapassi, Giovanni Chessa and Monica Del Naja, for researching, compiling
and writing this findings, as well as providing in-depth market analysis, Alberto Pozzi,
Andrew Hogenson and James Etheredge for specialized support.
The Efma Team for their collaborative sponsorship, marketing and continued support.
Copyright 2011 Efma. All rights reserved.
This report should not be reproduced or redistributed,
in whole or in part, without the written permission of Efma and Novametrie
Efma accepts no liability whatsoever for the actions of third parties in this respect.
UniCredit is a major international financial institution with strong roots in
22 European countries and an international network present in approximately
50 markets, with 9,578 branches and more than 162,000 employees.
In the CEE region, UniCredit operates the largest international banking network
with around 4,000 branches and outlets.
The group operates in the following countries: Austria Azerbaijan, Bosnia and
Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Germany, Hungary,
Italy, Latvia, Lithuania, Kazakhstan, Kyrgyzstan, Poland, Romania, Russia, Serbia,
Slovakia, Slovenia, Turkey and Ukraine.
www.unicreditgroup.eu
Accenture is a global management consulting, technology services and outsourcing
company. Combining unparalleled experience, comprehensive capabilities across
all industries and business functions, and extensive research on the worlds most
successful companies, Accenture collaborates with clients to help them become
high-performance businesses and governments. With approximately 211,000
people serving clients in more than 120 countries, the company generated net
revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010.
www.accenture.com
Efma (European financial marketing association) is the leading association of banks,
insurance companies and financial institutions throughout Europe. On a non-for-
profit basis, Efma promotes innovation and best practices in retail finance by
fostering debate and discussion among peers supported by a robust array of
information services and numerous opportunities for direct encounters. Efma was
formed in 1971 and gathers today more than 3,000 different brands in financial
services worldwide, including 80% of the largest European banking groups.
Efma
8, rue Bayen
75017. Paris
France
Phone: +33 1 47 42 52 72
www.efma.com
Copyright 2011 Efma /Accenture. All rights reserved
This report should not be reproduced or redistributed,
in whole or in part, without the written permission of Efma and Accenture.
Efma accepts no liability whatsoever for the actions of third parties in this respect.
51
About Us
Insights for Banks from the Retailing Sector

more information on www.efma.com
Best practices in retail financial services
June 2011
Insights for Banks from the Retailing Sector
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