Insight Report: Best Practices in Marketing Retail Banking Products

The global banking industry is changing the way it markets products and services, with banks in both developed and emerging economies adopting customer segmentation strategies to distinguish their products from those of their competitors. These strategies have increased banks’ client bases, and the number of potential customers. To capitalize on this, banks have expanded their product portfolios, adopted pricing strategies, and expanded into new regions. Banks are also focusing on the technological aspects of offering their products; using analytics to understand consumers’ purchasing behaviors and preferences in order to provide personalized products and an improved customer experience.

Promotional campaigns through traditional channels such as television, radio, print media and telemarketing have been among key initiatives taken by banks to increase brand awareness. The proliferation of video and mobile technology has also enabled banks to market their products and services online, through mobile channels and social media. As internet access and smartphone adoption increase, so does consumer demand for convenient banking services through these channels. Banks are therefore developing processes and employing new channels to respond to web-based consumers, create brand awareness, promote new products and services, identify customer needs, and elicit feedback.

Banks in both developed and emerging economies are increasingly using analytical tools to analyse consumer-purchasing behaviors whist identifying and phasing out ineffective pricing structures, or reward programs.

Scope

• A competitive assessment of the customer segmentation, product, and pricing strategies adopted by banks in different markets.

• An analysis of the key operational and technological trends arising in the global retail banking industry due to rising competition and changing consumer behavior.

• Insight into marketing strategies adopted by banks in countries such as: the US, Canada, the UK, Germany, Australia, South Korea, Brazil, Russia, India and China.

• An outline of the various factors affecting consumer choice of retail banking products in developed and emerging economies.

• An investigation of the key drivers, issues and challenges faced by retail banks while implementing product, pricing and marketing strategies in these economies.

• Detail on the various channels that banks use to launch marketing campaigns, promote products and services, and communicate with their customers.

Key Highlights

What are retail banks adopting globally to remain competitive and gain market share?

What are the key factors retail banks are addressing in order to enhance their brand value and raise awareness of their products?

What has been the difference in focus between retail banks in developed economies and those in emerging economies?

Which process, applied by retail banks in both developed and emerging economies, is becoming essential in understanding customer needs?

What is becoming fundamental to best marketing practice in retail banking? What are the main drivers of this growing strategy?

Reasons to buy

• Gain insights into the retail banking industry in developed and emerging economies to target your strategies efficiently and effectively.

• Identify strategies adopted to improve products and product portfolios in key markets.

• Investigate key operational and technological trends in retail banking and align with those that offer you competitive advantage.

• Understand various channels that banks use to communicate with customers and to promote products and services. Apply to your sales and marketing and extend your customer base.

Companies mentioned

Wells Fargo

JP Morgan Chase

Bank of America

Westpac

Commonwealth Bank of Australia

HSBC

Citibank

Lloyds Bank

Scotiabank

Royal Bank of Canada

Shinhan Card

Barclays

NatWest Bank

Deutsche Bank

Russian Standard Bank

Axis Bank

China Merchants Bank

ICICI Bank

Nedbank

Sberbank of Russia

Bradesco Brazil

Table of Contents

1 Executive Summary

2 Retail Banking Market Dynamics

2.1 Global Snapshot

2.2 Key Trends and Challenges

2.2.1 Key trends

2.2.2 Challenges

3 Marketing Strategies in Developed Economies

3.1 Use of Analytics

3.2 Customer Segmentation and Targeting

3.2.1 Segmentation based on income levels

3.2.2 Segmentation based on demographic profiles

3.2.3 Segmentation based on psychographic profiles

3.3 Product and Pricing Strategies

3.4 Marketing and Promotional Strategies

3.4.1 Conventional marketing

3.4.2 Digital marketing

4 Marketing Strategies in Emerging Economies

4.1 Use of Analytics

4.2 Customer Segmentation and Targeting

4.2.1 Segmentation based on income level

4.2.2 Segmentation based on demographic levels

4.2.3 Segmentation based on psychographic profiles

4.3 Product and Pricing Strategies

4.4 Marketing and Promotional Strategies

4.4.1 Conventional marketing

4.4.2 Digital marketing

5 Best Practices in Retail Banking Marketing

5.1 Wells Fargo’s Use of Digital Channels to Promote Mobile Banking Services

5.2 Barclays’ Online Platform Allowing Customers to Share Ideas

5.3 ICICI Bank Introduced the Tab Banking facility to open accounts

5.4 Guaranty Trust Bank Takes Banking on Facebook

5.5 BBVA Uses Social Media to Improve Customer Loyalty

5.6 Russian Standard Bank (RSB) Benefits from an Analytics Platform

6 Appendix

6.1 Methodology

6.2 Contact GlobalData

6.3 About GlobalData

6.4 GlobalData’s Services

6.5 Disclaimer

List of Tables

Table 1: Internet and Mobile Penetration In Emerging Markets, 2013

Table 2: Top 100 Most Liked Banks on Facebook, March 2014

Table 3: Top 100 Banks on Twitter by Number of Followers, March 2014

Table 4: Global Markets by Unique Video Viewers, December 2012

Table 5: Mass Affluent Adults in Developed Economies (Percentage of Total Adult Population), 2009–2013

Table 6: Wells Fargo’s Increased Interest Rates on CDs

Table 7: Commercial Bank Branches (per 100,000 Adults) in Emerging Economies, 2009–2012

Table 8: Digital Marketing Initiatives by Banks in Developed Economies

Table 9: Unbanked Population Statistics, 2013

Table 10: Annual Interest Rates for HDFC Bank’s Term Deposit Account (Below INR10 Million)

Table 11: Annual Interest Rates for HDFC Bank’s Term Deposit Account (Below INR10 Million)

Table 12: Commercial Bank Branches (per 100,000 Adults) in Emerging Economies, 2009–2012

Table 13: Digital Marketing Initiatives by Banks in Emerging Economies

List of Figures

Figure 1: Overview of Retail Banking Marketing

Figure 2: Teenagers and Young Adults (Aged Below 25 Years) in Developed Economies, 2009–2018

Figure 3: Aging Population (65 Years and Over) in Key Developed Economies, 2010–2025

Figure 4: Population Gender Percentages in Key Developed Economies, 2013

Figure 5: Young and Economically Active Populations in Emerging Economies, 2010–2025

Figure 6: Population Gender Percentages in Key Emerging Economies, 2013

Figure 7: Active Mobile Broadband Subscriptions in Developing Economies (Million), 2009–2013

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