More on Customer Strategy
- More Coach Seats Needed for Retail Sales
- Talking Up Sales in the Contact Center
- Evolving the Role of the Branch in a Multi-Channel World
- The Contact Center: Retail Bankings Revenue Bright Spot
- Wealth Management Presents Opportunity for Banks, But Also Stiff Competition
- More Banks Plan to Add, Not Subtract, Branches
- Banks Must Think Differently About Customer Experience In A Branchless Digital Environment
- Banks Plot Major Shrinking of Branches
Institutions that create enduring customer commitment are the winners in any industry. In financial services, most customer decisions on financial institution relationships occur infrequently and, once made, are difficult to change. This works in favor of established institutions and makes inroads into new markets difficult.
Novantas believes that distinctive growth in financial services is possible through innovation that enhances some dimension of the customer experience. Novantas has a demand-based perspective on strategy. We identify opportunities in customer segments and markets through in-depth analysis and evaluation of an institution’s current and potential customers. We help our clients identify clearly defined customer segments, decide top priority targets based on relative attractiveness, and align their resources to deliver superior value to these segments. Our distinctive segmentation approach integrates dimensions of motivation, perception, attitude, behavior (both observed and self-stated) and demographics.
Within this framework, the first tenet of effective strategy is to defend the core franchise. This is achieved through consistent delivery of a differentiated value proposition that meets important customer needs. The second tenet of effective strategy for financial institutions is to grow by expanding offerings to core segments or by moving into adjacent segments. Understanding the nexus of customer needs and core competencies provides the framework for correctly identifying adjacent segments that should be pursued.
Our approach balances analytic purity with pragmatic actions to ensure that the resulting segmentation delivers superior results. Novantas identifies key opportunities for banks to achieve differentiation against the target segments and markets, based on an understanding of customer needs, competitive environment and delivery economics. Finally, institutions must consider the sustainability of the franchise in the development and delivery of their offerings. Strategies should be stress tested in both hypothetical and actual stressed environments.