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    Bankinter Sample Assignment

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    Adrienn Zs.
    Bankinter faced challenges acquiring new online banking customers after the dot-com crisis. It tried three strategies with varying success: aggressive advertising campaigns, portal alliances, and an e-collaborator program. The e-collaborator program was the least profitable due to its broad focus that led to loosely defined targeting, less involved customers outside the target group, and a high ratio of non-profitable to profitable customers. To improve results, the summary suggests modifying the e-collaborator program to focus more narrowly on the original target group and related finance/banking websites, using incentives tied to formal registration and profitable products, and simplifying the registration process.

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    Bankinter Sample Assignment

    Uploaded by

    Adrienn Zs.
    183 views6 pages
    Bankinter faced challenges acquiring new online banking customers after the dot-com crisis. It tried three strategies with varying success: aggressive advertising campaigns, portal alliances, and an e-collaborator program. The e-collaborator program was the least profitable due to its broad focus that led to loosely defined targeting, less involved customers outside the target group, and a high ratio of non-profitable to profitable customers. To improve results, the summary suggests modifying the e-collaborator program to focus more narrowly on the original target group and related finance/banking websites, using incentives tied to formal registration and profitable products, and simplifying the registration process.

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    Bankinter faced challenges acquiring new online banking customers after the dot-com crisis. It tried three strategies with varying success: aggressive advertising campaigns, portal alliances, and an e-collaborator program. The e-collaborator program was the least profitable due to its broad focus that led to loosely defined targeting, less involved customers outside the target group, and a high ratio of non-profitable to profitable customers. To improve results, the summary suggests modifying the e-collaborator program to focus more narrowly on the original target group and related finance/banking websites, using incentives tied to formal registration and profitable products, and simplifying the registration process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    183 views6 pages

    Bankinter Sample Assignment

    Uploaded by

    Adrienn Zs.
    Bankinter faced challenges acquiring new online banking customers after the dot-com crisis. It tried three strategies with varying success: aggressive advertising campaigns, portal alliances, and an e-collaborator program. The e-collaborator program was the least profitable due to its broad focus that led to loosely defined targeting, less involved customers outside the target group, and a high ratio of non-profitable to profitable customers. To improve results, the summary suggests modifying the e-collaborator program to focus more narrowly on the original target group and related finance/banking websites, using incentives tied to formal registration and profitable products, and simplifying the registration process.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 6

    INTERNET CUSTOMER ACQUISITION

    STRATEGY AT BANKINTER
    CASE STUDY DISCUSSION
    EVALUATION OF THE ACQUISITION
    STRATEGY OF BANKINTER
    BUSINESS PROBLEM OF BANKINTER IN 2001
    Dotcom crisis How can Bankinter convince the Positioning of the bank:
    Competition in online investors about the growth potential of emphasis on innovation (online
    banking is increasing online banking? banking)

    New customers Existing customers (younger, informed,


    Tool: acquisition price-conscious customers)
    Potential is large: expected growth rate is high! Tool: Customer retention, add-on selling

    COMPARISON OF THE ACQUISTION STRATEGIES


    late 90s 2000 2001
    The customer acquisition strategy ATL campaign portal alliances e-collaborators
    is very diffuse, as the company is
    still in the learning phase. Thus, Pro: Pro: Pro:
    High reach Given visitor base at low(er)-cost per lead
    there were 3 major turns in the Raise awareness target portals 44 000 new customers
    acquisition strategy within 3-5 high channel-power
    years. Con: Con: hard to duplicate
    aggressive incentives Hidden brand/co- info gathering tool for
    ( 60-70 stock) branding customer centered CRM
    offline ATL promotion Expensive fee structure only VC for customer
    Competition copycats acquisition
    HR capacity problems Con:
    only 5000 active clients no focused targeting
    gained low quality new
    customers (non-
    formalized)
    high churn (lower
    expected years at bank)
    EVALUATION OF THE ACQUISITION
    STRATEGY OF BANKINTER
    PROFITABILITY OF ACQUISITION STRATEGIES
    8700 Alliances E-collaborator

    The only profitable acquisition Unprofitable acquisition The most unprofitable


    because of: because of: acquisition because of:
    Lowest ratio of non- Highest ratio of non- High ratio of non-
    profitable/profitable customers profitable/profitable customers profitable/profitable customers
    Highest profit contribution and High acquisition cost in year 0 Retention rate of profitable
    high retention rate of profitable customers are low
    customers Profit contribution of
    Holding more profitable profitable customers is
    products (credit card, stock) relatively low
    High rate of cross selling Customer profile overlap very
    little with the initial target
    group
    SUGGESTIONS FOR THE AQUISITION
    STRATEGY
    INFLUENCE FACTORS OF THE BANKINTERS ACQUISTION STRATEGY
    The e-collaborator program is neither effective nor profitable because of
    its broad focus leading to: The e-collaborator
     loosely defined acquisition program should be
     less involved customers who doesnt belong to the target group modified!
     high proportion of non-profitable customers

    SUGGESTIONS FOR THE BANKINTERS ACQUISTION STRATEGY

    Focusing on the original target group of Bankinter


    TARGETING Focusing on more specific websites related to finance and banking

    Incentives should be tied to the formalization of the registration


    INCENTIVES Incentives should motivate the prospects to be involved in
    profitable banking products (credit cards, mortgages, stock etc.)

    Registration process should be reviewed and simplified.


    PROCESS Defining more acquistiion levels and carefully monitor conversion
    rates
    ACTION PLAN FOR ANA PERALTA

    1) DECREASING THE 2) MANAGING 3) DECREASING THE RATIO OF NP/P


    NUMBER OF NON- RETENTION RATE CUSTOMERS
    FORMALIZED
    CUSTOMERS
    Review of the online Profitable customers: The ratio of non-profitable/profitable
    registration process: increase retention rate customer should be decreased by:
    rationalization of the by identifying why more selective acquisition strategies
    necessary steps. customers switch focusing on more specific portals,
    bank adjusting price, suitable incentives for
    Motivate customers Creating more customers
    with reasonable targeted offers
    incentives to finish Non-profitable REVENUE COST
    the registration customers:
    process. Focusing on Proper type
    Decreasing retention
    customers of higher and size of
    rate by increasing
    profit potential incentives
    service level and
    Focusing on cross- Churning faster
    price
    selling of products the most
    with higher profit unprofitable
    potential customers
    APPENDIX: CLV CALCULATION

    The calculation considers 4 time periods for each acquisition strategy.


    10% discount rate is assumed.

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