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					                     Turning conversation into sales –
                     CRM at Westpac

                     Mike Pratt
                     Group Executive, Business & Consumer Banking

                     Retail Finance Asia-Pacific Conference & Expo
                     Kuala Lumpur
                     30th March




    Agenda




    • Background
    • Key challenges for Westpac
    • CRM at Westpac
    • Future Needs
    • Westpac Leads & Relationship Builder
    • Dashboard & Executive Reporting




2                                                               Presentation Title & Date
    Background - Westpac Banking Corporation today


    • Australia’s First Bank                        Composition of Westpac cash earnings
                                                    (as at 30 September 2004)
         – Established in 1817
    • Position as at 30 September 2004                          BT
                                                                           Other
                                                                            5%
                                                             Financial
         – Total assets        A$245bn                        Group
                                                                                   Business &
                                                                                   Consumer
                                                                8%                  Banking:
         – Total deposits A$146bn                     New Zealand
                                                                                   Consumer
                                                                                      27%
                                                       & Pacific
         – Net profit          A$2,539m                 Banking
                                                         16%

    • Market Capitalisation                                                        Business &
                                                             Westpac               Consumer
         – A$34bn                                          Institutional            Banking:
                                                              Bank                  Business
                                                                                      25%
    • 1,065 points of representation                           19%


    • 8.2 million customers                                                          Total Business and
                                                                                     Consumer Banking
                                                                                            52%
    • 25,683 employees


3                                                                                         Presentation Title & Date




    Background - Reputation/sustainability – enhancing returns


    Sustainability - supporting the value chain

              Staff                       Customers                                  Returns


      A great place to work           Number 1 in customer                    Enhance sustainability
                                           service                                 of returns

     • Improved staff               • Ethical and responsible               • Reduce cost of staff
       retention                    • Trustworthy                             turnover
     • Enhance ability to                                                   • Improve customer
       attract quality staff                                                  share of wallet


                      Number 1 financial institution globally in Dow Jones
                      Sustainability Index 2003/04 - for the third year in a row.

                      Australia Number 1 company overall – RepuTex Social Responsibility
                      Ratings 2003. Only company to receive a AAA rating.



4                                                                                         Presentation Title & Date
     Background - Westpac’s strategy is founded on increasing customer focus
     to become the No 1 service organisation in the financial services industry

                                                                 Westpac DNA
          Vision                                  Strategy                               How?                            Outcomes
        “To be a great                                                              Differentiator:                        Core Group
                 Company”
    Australasian Company”                                                         Superior Execution                     Objectives 2005

    A great place to work                         Customer                       Our high performance                • Increase employee
                                                                                                                       commitment by at least 5%
    A superior customer experience                                                culture:
    1st quartile shareholder returns
                                                   Focus                         • Quality people
                                                                                                                     • Improve customer
                                                                                                                       satisfaction by at least 5%
    A good corporate citizen                                                     • Effective processes               • Deliver cash earnings
                                                                                 • Values and mind-set                 growth of 7% to 9%
                                                                                                                     • Top 5 corporate
                                                                                                                       citizenship ranking
            Mission
    “To be the No 1 service
        organisation in the                                                Service Profit Chain
         financial services
      industry by Sept 2005”
                                              Employee                                       Customer                       Shareholder
                                                                   Employee
                                                                                                                          Revenue
                                                                   Retention
                                       Internal                                                                            Growth
                                                                                   Superior
                                       Service       Employee                                   Customer      Customer                    Shareholder
                                                                                  Customer
             Values                                 Commitment                                 Satisfaction    Loyalty                      Value
                                       Quality                                    Experience
            Teamwork                                               Employee
             Integrity                                                                                                    Profitability
                                                                  Productivity
           Performance



                                                                       Once”
                                                                  “Ask Once”

5                                                                                                                        Presentation Title & Date




       Key Challenges for Westpac




               • Targeting the right customers


               • Increase customer satisfaction


               • Improve sales discipline and leadership




6                                                                                                                        Presentation Title & Date
     CRM at Westpac - Our CRM Program was conceived as a 5 year
     initiative and core to achieving our competitive advantage

                                                CRM at Westpac
                                                CRM at Westpac
       Sales & Service
       Sales & Service                                       Marketing
                                                              Marketing                  Technology Delivery
                                                                                         Technology Delivery
                                 Sales Skills Upgrade
                                 Sales Skills Upgrade
       Transformation
       Transformation                                     Transformation
                                                           Transformation                  Transformation
                                                                                           Transformation
      Capture future customer
      Capture future customer     Proactively call
                                  Proactively call            From “above” and
                                                               From “above” and           Install market-leading
                                                                                           Install market-leading
      needs and profiles
      needs and profiles          customers
                                  customers                   “below-the-line” to
                                                               “below-the-line” to        packaged applications
                                                                                           packaged applications
                                                              Integrated Marketing
                                                               Integrated Marketing
      Lead actioning
      Lead actioning              Disciplined sales
                                  Disciplined sales                                       Integrate these
                                                                                           Integrate these
                                  management
                                  management                  From intuitive customer
                                                              From intuitive customer     applications with
                                                                                           applications with
      Easy to do referrals,
      Easy to do referrals,                                   selection to “needs” and    existing systems
                                                              selection to “needs” and     existing systems
      service requests, single
      service requests, single    Dashboards for visibility
                                  Dashboards for visibility   event-triggered
                                                              event-triggered
      customer view, etc.
      customer view, etc.                                     campaigns                   Strategic joint-
                                                                                          Strategic joint-
                                                              campaigns
                                                                                          development
                                                                                          development


                                                 Strategic Benefits
                                                 Strategic Benefits


                                         Revenue uplift
                                         Competitive advantage through
                                         CRM capability leadership
                                         Superior customer experience
                                         Operational excellence & staff
                                         satisfaction


7                                                                                              Presentation Title & Date




     CRM at Westpac - The CRM capabilities drive revenue growth and
     support our “Ask Once” strategy

    They extend across Service, Sales and Fulfilment.

                Service                                   Sales                                    Fulfillment




                                                                                            Integration
                                                                                             with other
                                             • Sales force management                      applications
                                               and measurement                             (e.g. lending
                                                                                           fulfilment) to
                                             • Customer future needs and                      support
       • Continuous                            follow up                                    continuous
         conversation – can                  • Referrals and service                       conversation
         see current position                  requests
         of customer across all              • Lead generation and
         channels                              actioning




8                                                                                              Presentation Title & Date
              CRM at Westpac



                                                                   Customer                Employee         Partner
                                                                                       Multi Channel Access


                                    Branch                         Web                    Call Centre                Face to Face                    ATM


                      Managing the Customer Experience                        Enabling the Sales & Service Team                     Managing Business Performance

                          Customer Contact Management
                                                                                       Sales & Service Skills                            Dashboards & Scorecards
                             Westpac Leads
                          Future Need-based Leads
                      (NCR Relationship Optimiser)
                                  Event-based Leads                            Opportunity/Pipeline Management                               Alerts & Insights
                                                                                                                                              Dashboard
                                                                                       The Westpac Way
                                                                                                                                          (Siebel Analytics)
                            Product/Transaction History
                             Relationship Builder                                 Sales & Service Leadership                           Aligned Performance Targets
                          Customer Feedback/Complaints
                              (Siebel eBusiness)
                        Customer Profile & Needs Capture

                                                                                      Analytical Optimisation
                             Event         Behaviour &                          Customer                   Needs &                  Risk Adjusted        Credit &
                                 Westpac Leads
                            Detection      Preference                            Value           Enterprise Modelling Environment
                                                                                                     Propensities      Pricing                            Fraud
                           (Relationship Optimiser)                                                        (SAS eMiner)

                                                                              Managing (Real-Time) Information

                                         Metadata                            Operational data
                                                                                                Data warehouse                            MQ Series/
                                                                                                                                           Middleware
                                     Siebel Analytics
                                        management                                  NCR
                                                                                  store Teradata/Oracle
                                                                                                                                          Websphere




9                                                                                                                                                       Presentation Title & Date




             CRM at Westpac - The footprint will cover approx 20,000 staff and also
             enable the retirement of 5 legacy applications and drive simplified MIS
         BEFORE CRM CAPABILITIES DEPLOYMENT
                                             CSR1/                                                         BCB Non
                                             Teller                                                        sales staff     BTSS
                                                                                                                         Customer
             Reg/Bran             CSR2                                                              DS&S                  contact
              Mgr TL                                       RM
     Roles




                                                 2,888              Wealth     Private
                     BSR & BFM                                                  Bank      HFM
                                                                                                                           1,789
                                                                                                                                         Multiple sales systems cause :
                                                                      711
                                                                                171                                                      • Confusion for staff
                                                                                                                                         • Missed opportunities
                                                                                                                                         • Lack of visibility on sales activity
                                                                                 WL         CRM
                            COLTS          ITS            ASTS       CIS
                                                                                 RB         Tools




                                           MRS               BBPRS             Dashboard            GDW


             AFTER CRM CAPABILITIES DEPLOYMENT                                                                                            Full Deployment of one
                                                 CSR1/                                                      BCB Non
                                                 Teller                                                     sales staff     BTSS            Customer Management
                                                                                                                          Customer
              Reg/Bran              CSR2                                                            DS&S                   contact          system will :
               Mgr TL                                       RM                  Private                                                   • Drive productivity
     Roles




                      BSR & BFM
                                                  2,888              Wealth
                                                                                 Bank      HFM
                                                                       711
                                                                                                                            1,789
                                                                                                                                          • Simplify processes for staff
                                                                                 171
                                                                                                                                          • Provide management with
                                                                                                                                            timely sales information
                                                                                                                                          • Drive cost reduction
                                                                 WESTPAC LEADS
                                                             CRM CAPABILITIES
                                                           RELATIONSHIP BUILDER
                                                                  DASHBOARD
                    Reach deployment with
                    additional funding in FY05
10                                                                   GDW                                                                                Presentation Title & Date
     Future Needs - Systemising proactive customer contact and leads
     is the heart of CRM at Westpac



                                    • Review daily transactions /
                                       vouchers


                                    • Pick high – potential customers


                                    • Make this consistent across
                                       20,000 staff




11                                                            Presentation Title & Date




     Future Needs - CRM Capabilities allow for future customer needs to
     be captured, remembered and actioned at the appropriate time




                                          Relationship
                                            Builder
12                                                            Presentation Title & Date
     Westpac Leads & Relationship Builder - How does it work ?

                                  Customer Profile and Future Needs
                                  Customer Profile and Future Needs


      Banker enters the
     Future Need in
     Relationship Builder                                                                     At some time in the future,
     (RB)                                                                                      Westpac Leads delivers
                                                                        Outbound Call           the lead to a Banker via
                               Customer need &
                              ‘profile’ discussed                                                 Relationship Builder

                                                    $      $




                                                 Customer/
                                                 Banker Talk

                                                                                                   Westpac
             CRM                                                                                    Leads
                           Relationship Builder passes the Future Need to
                            Westpac Leads

      Westpac
      Westpac      Corporate memory – capitalising on sales opportunities which may otherwise be forgotten
      Business
                   Corporate memory – capitalising on sales opportunities which may otherwise be forgotten
      Business
      Benefits
       Benefits    A continuous conversation with the customer
                   A continuous conversation with the customer


13                                                                                                           Presentation Title & Date




     Westpac Leads & Relationship Builder – Lead Generation
     & Distribution work in concert to manage interaction
              Lead Distribution via Relationship Builder
              Lead Distribution via Relationship Builder                            Customer Interaction Management
                                                                                    Customer Interaction Management
                                                         Advertising & PR


                                    Mail House                 Direct Mail
                                    Mail House


                                                         Financial Advisers             Westpac                  Customer
                                                                                            Contact through channel
              Westpac                                       Relationship
               Leads                                         Managers               • Customer response captured and
                                       CRM
                                        CRM
                                                        Call Centre (Inbound            fed back to Westpac Leads
                                      ATM’s
                                       ATM’s                & Outbound)
                                     Internet
                                      Internet
                                                                Branch



                                                                Website


 • Qualified, quality leads                               Internet Banking

                                    Automated
                                    Automated
 • Relevant sales channel                                        e-mail
                                     Channel
                                     Channel                                            Communication with customer
 • Right information to            Management
                                   Management                                               managed based on :
                                                                  ATM
   support the campaign              Systems
                                     Systems
                                                                                    • Customer responses to each step
 • Applies exclusion and                                         SMS                      of the campaign contact
   recency rules                                                                        •   Business rules in the Westpac
                                                                  IVR
                                                                                             Leads Communication Plan


14                                                                                                           Presentation Title & Date
     Westpac Leads & Relationship Builder – In business banking, CRM
     is a key part of our strategy and ability to execute

           Segmentation and                      Product & Risk         Banking Distribution
             Technology                           Management

                                                                                                     Wealth
                              Relationship
                                Builder
      Experience



                                                                                   SME                        Middle Markets
       Customer




                                                                             BSR               BSR
                                                                                                                & Priority

                                                   Industry
                                                                 +
                                                                                                                  Senior RM

                      +                      +     Solutions           BSR
                                                                                   Financial
                                                                                    Centre
                                                                                     BFM
                                                                                                     BSR
                                                                                                                   CM
                                                                             BSR               BSR

                               Credit Re-                                                                          RSM

                              engineering
                                                                                        Business Direct




                                Recruitment, Training and skill development
                                                                      Key:
                                                   People             BSR
                                                                      RM
                                                                                        - Banking Service Representative
                                                                                        - Relationship Manager
                                                                      RSM               - Relationship Sales Manager
                                                                      CM                - Customer Manager (service)




15                                                                                                         Presentation Title & Date




     Dashboard & Reporting - The Dashboard provides real-time sales
     management, visibility of the sales pipeline and sales effectiveness
     metrics
                                                 Sales Results

                           Effectiveness                                     Financial


                                                     Trends


                      Sales Pipeline                                                    Profit and Loss
                                                                                        Financial Ratios

                   Activity                                                                    Customer Feedback



                                                   Customer


             Performance                                                                           What is our
            on key metrics                                                                     performance against
                                                                                                     targets?




                                    Activity x Effectiveness = Results


16                                                                                                         Presentation Title & Date
     Dashboard & Reporting - The Dashboard can support the cascading
     of the corporate scorecard throughout the organisation



                                                                                                                                                                                Aggregation
                                                                                                                                                                                Aggregation

                                                                   Sales Results

        Organisational                    Effectiveness                                           Financial



        Vantage Points                                                     Trends


                                     Sales Pipeline                                                    Profit and Loss
                                                                                                       Financial Ratios

                                  Activity                                                              Customer Feedback




                                Performance
                               on key metrics
                                                                        Customer

                                                                                                     Sales Resultsour
                                                                                                            What is
                                                                                                        performance against
                                                                                                                                                                             • Customer Segments
                                                                                                          SLA and FPOC ?
                                                                     Effectiveness

       • Executive
                                                                                                                                      Financial




                                                                Sales Pipeline
                                                                                                          Trends


                                                                                                                                           Profit and Loss
                                                                                                                                           Financial Ratios
                                                                                                                                                                                             • Campaigns
                                                             Activity

       • Managerial
                                                                                                                                            Customer Feedback


                                                                                                                                 Sales Results

                                                                                                                                                                                                           • Products
                                                                                                       Customer

                                                                                               Effectiveness                                                        Financial
                                                           Performance                                                                          What is our
                                                          on key metrics                                                                    performance against
                                                                                                                                              SLA and FPOC ?



       • Team Leadership
                                                                                                                                       Trends


                                                                                          Sales Pipeline                                                               Profit and Loss


                                                                                       Activity
                                                                                                                                                                       Financial Ratios

                                                                                                                                                                         Customer Feedback
                                                                                                                                                                                                                          • Channels
                                                                                                                                                              Sales Results


       • Individual Contribution                                                     Performance
                                                                                                                                    Customer
                                                                                                                               Effectiveness
                                                                                                                                                                             What is our
                                                                                                                                                                                               Financial

                                                                                    on key metrics                                                                       performance against
                                                                                                                                                                           SLA and FPOC ?
                                                                                                                                                                    Trends


                                                                                                                          Sales Pipeline                                                          Profit and Loss
                                                                                                                                                                                                  Financial Ratios

                                                                                                                   Activity                                                                         Customer Feedback



                                                                                                                                                                  Customer


                                                                                                               Performance                                                                              What is our
                                                                                                              on key metrics                                                                        performance against

                   Drilldown
                   Drilldown                                                                                                                                                                          SLA and FPOC ?
                                                                                                                                                                                                                                 Cross Functional
                                                                                                                                                                                                                                  Vantage Points




17                                                                                                                                                                                                                              Presentation Title & Date




     Disclaimer

     The material contained in this presentation is intended to be general
     background information on Westpac Banking Corporation and its activities.
     The information is supplied in summary form and is therefore not necessarily
     complete. Also, it is not intended that it be relied upon as advice to investors
     or potential investors, who should consider seeking independent
     professional advice depending upon their specific investment objectives,
     financial situation or particular needs.
     The financial information contained in this presentation includes non-GAAP
     financial measures. For a reconciliation of these measures to the most
     comparable GAAP measure, please refer to financial statements filed with
     the Securities Exchange Commission and Australian Stock Exchange.




18                                                                                                                                                                                                                              Presentation Title & Date

				
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