Problem Definition

The new innovative schemes by the bank do not register an impression on the minds of its target audience. The methodology the bank is currently using is sending emails, which not many customers care to check if sent regularly. There is also a fear of terming all the mails by the Bank as spam and hence there is always a possibility that more important emails sent by it could be missed. Due to a mundane approach of reaching out to its customers (existing in this case), the response rate is as low as 0.75% in the first 2 weeks and only 2% by the end of the month. Here, we observe the Bank is using only a Push approach to the sale of its products with limited success.

Reaching out to its Target Audience

Firstly, the approach here depends on what kind of a scheme is the Bank planning to promote. In India, if we closely observe, majority of the Savings in the Banks would be from the Individuals or small businesses. The majority of loans or debt would be from the corporate sector. Hence its important to first understand a product and then target the audience. In this case, we assume that the problem lies with the response rates of Individual customers/small businesses than that of corporate houses. Hence we would be approaching it accordingly.

Reaching out to its Target Audience

In case of high net worth individuals, the Bank can always map these to relationship managers who can in turn give these customers a personal call and explain to them the new product and the benefits they could avail from the same. Going forward, the Bank would be targeting the Youth of the nation (Age group : 15 39),in order to increase its customer base which in turn would increase the off take of its services Hence, its critical to understand what does the New Indian want.

Research to understand the Young Customer

We conducted a small survey to understand how does a young Indian go about his savings and other financial investments. We collected information from 11 respondents, all of them in the age group of 23 to 26, all having worked in an organisation before. All the respondents said that they have 2 or more Bank accounts, one being the Salary Account given to them by their organisation and the other the one their Parents introduced to them as a Kid.

Survey Findings and Analysis

9 out of the 11 respondents replied saying that they did not take or have in-depth interest/knowledge in their financial savings/investments as majority of it was taken care of by their parents/guardians. All of them replied saying that they use Internet Banking for their transactions, but never really bothered to go check the New Schemes/Offers section. 7 out of the 11 replied saying, they would avail Salary Loan or Soft Loan from the company they are working from in case they have an urgent requirement of cash. All of them also replied saying that in the future they would be interested in taking their financial concerns into their own hands and would like to understand what needs to be done for the same.

Survey Findings and Analysis

From the survey we can make conclude a few points 1. Currently, Influencers play a vital role in choosing financial/banking services. 2. The young individuals are interested in taking the decisions themselves if properly educated about the same. 3. The use of internet to avail services in massive, and hence needs to be tapped accordingly. 4. Corporates and Offices are an ideal place to showcase the new schemes the Bank has to offer.

Reaching out to the Target Customers

The easier way to target the Customers of all age groups is to use the Banks premises/ATMs to knowledge them about the new products/schemes. The older segment of the population still does not use Internet to a very high extent and is more likely to do transactions by coming to the Bank itself. Having eye catching banners/boards regarding the new scheme and its advantages is a good way to create a mind space. In the waiting area also, booklets can be kept which would be read by the customers, thus informing them about the product.

Reaching out to the Target Customers

Another way to catch the attention of all the existing and prospective customers is to have new scheme/account details printed out on the ATM pay slips. This need not be in detail but should be eye catching. Having help desks in corporate offices and busy areas, also helps to reach out to the Target Audience. Use of media/bus stop boards are always suggested. These are more expensive but the reach is also very high. Radio is also a great way to reach out to both the rural and urban customers. It is also cost effective. Use of No-Parking boards and also banners for businesses who have availed the Banks loans are ways in which the Bank can always stay in the customers minds.

Reaching out to the Target Customers

In todays world creating a Pull for a product is more important than creating a Push. This is because of the very competitive nature of the sector where every one is trying to capture the mind space of the customer. This makes it essential to differentiate the offerings, and always staying connected to the current and prospective customer. Social Media is a great way to reach out to the Customers, and in turn make him reach out to other people. Using social media is also a great way to Service your clients better and also to abate negative word of mouth if any. The reasons for the same are further discussed.

Thank You