Strategic Marketing and Business Development

Question 0

Key customer question

Answer 0

“Why should I do business with your bank rather than competitors”

Question 1

What is “sustainable competitive advantage”

Answer 1

1. Strategies that position the bank
2. Superior, long term profitability
3. In spite of external factors

Question 2

Key fundamental customer question

Answer 2

“How will your bank help/me achieve my financial goals?”

Question 3

Bank customer dissatisfaction level with banks

Answer 3

39%

Question 4

Market Structure Variables

Answer 4

1. Differentiation

2. Profits

Question 5

Competitive advantage will lead to _________?

Answer 5

Superior Profits

Question 6

Profit impact of Quality/Differentiation (Q/D) Strategies

Answer 6

Low or High price with high quality best performers

Medium/Medium worst performers

Question 7

Impact of high relative quality?

Answer 7

2X performance

Question 8

Who performs better high price or medium priced banks

Answer 8

High priced by 50%

Question 9

Competitive structure variables

Answer 9

1. Relative perceived quality

2. Profits

Question 10

Competitive Advantage Strategies
Best
Worst

Answer 10

Best Broad Market, Low Cost or Narrow market and differentiation
Worst middle

Question 11

American Consumer Index highest score received by

Answer 11

Credit Unions 87%

Question 12

Bank Attrition Rates equal

Answer 12

Overall 14%

Source ABA

Question 13

Bank customer attrition rates first 5 years minimum

Answer 13

15%

Question 14

Customer Service Keys

Answer 14

1. Listen
2. Respond
3. Do responses work

Question 15

Reason banks lose customers

Answer 15

Service Quality

Question 16

Wall Street Journal estimates banks spend ___ times more on customer acquisition than customer satisfaction

Answer 16

Answer six to twelve times

Question 17

Banks spend ___times more to acquire a new customer than to retain or cross sell a current one

Answer 17

Answer 5 times

Question 18

Banks spend ___% of their service time preventing or eliminating problems and ___% of their time addressing them

Answer 18

Answer 5% and 95%

Question 19

Decreasing customer loss ratio by ___% for bank customers results in ___% increase in profits

Answer 19

Answer 5% and 85%

Question 20

Factors customers use to evaluate quality

Answer 20

Responsiveness
Assurance
Tangibles
Empathy
RATE

Question 21

What does ERA stand for

Answer 21

Factors customers use to evaluate quality
Empathy
Responsiveness
Assurance

Question 22

Mobile banking is growing at ___% and is expected to hit 96.1 million users by _______

Answer 22

Growing 30% per year

2016

Question 23

The percent of consumers concerned about security of Mobile Banking is ____%

Answer 23

70%

Question 24

Percentage of customers currently using a PFM

Answer 24

27%

Question 25

Over ____% consumers think the PFM/ enhances the value of the On Line Banking site and indicate that they are very satisfied or somewhat satisfied

Answer 25

over 90%

Question 26

Factors Customers use to evaluate quality

Empathy - aspects

Answer 26

Access
Communication
Understanding the Customer

Question 27

How much of the advertising expenditures do banks spend on newspapers and radio

Answer 27

40%

Question 28

How much do banks spend on Internet advertising

Answer 28

less than 5%

Question 29

What are the key website category ranking criteria?

Answer 29

Functionality
Ease of Use
Privacy and Security
Quality and availability

Question 30

What is the relative value of perceived quality

Answer 30

2X value

Question 31

What percentage of consumers trust peer recommendations

Answer 31

90%

Question 32

Social media is about ______

Answer 32

Relationships

Question 33

What percentage of time online do consumers spend on social media

Answer 33

43%

Question 34

Why should a bank have a social presence

Answer 34

Affordable marketing
Enhances brand
Builds credibility with target markets
Increase traffic to website
Engages customers
Survival

Question 35

Performance = ____________

Answer 35

Promises

Question 36

What is single biggest reason customers leave banks

Answer 36

Service Quality Dissatisfaction (68%)