Beating The Competition : Differentiation by Market Making Innovation in Payment Systems. M. Tunç DAŞAR CFO. Garanti Payment Systems

Transcription

1 Beating The Competition : Differentiation by Market Making Innovation in Payment Systems M. Tunç DAŞAR CFO. Garanti Payment Systems 1

2 The Market and Garanti TURKEY Population: 73 mio, Economic growth: 5 % Young Population, Open to change GARANTI 1st largest private bank 6 mio customers, $52 billion in assets, $1.34 billion net profit Extensive ADC usage Innovator culture GARANTI CARD BUSINESS 2nd largest credit card business, 22% market share 7.5 mio credit cards, 5.1 mio debit cards 329,874 POS, ATMs $28 billion charge volume, $5.1 billion receivables $30 billion acquiring volume, $13.5 billion debit volume 2

3 Touch of Every Segment by a Different Innovative Product Card Fee Interest Rate Limit Amex shop&miles Flexi Bonus Debit & Prepaid 3

4 Always the first mover... 1st Bank to implement : Loyalty-based installment credit card programme in Turkey (Bonus Card) Multi-branded chip-based credit card in Turkey (Bonus Card) Official air miles in Turkey by Turkish Airlines (Shop&Miles) Extended loan limit on a credit card in Turkey Corporate & Distribution card E-commerce Virtual card in Turkey Licensing partnership with another bank in Turkey In Turkey and one of the 1st in the world to adopt full EMV-chip credit card technology Flexible card enabling customers to create their ideal credit card (Flexi) 4

5 Two stories... Bonus Card Flexi 5

6 Bonus Card Story of free shopping in Turkey 6

7 Imagine... Everything on store cards.. 7

8 Imagine... Everything on co-branded cards... 8

9 Imagine... instant credit at the point of sale 9

10 Available to you everywhere... To name a few 10

11 H O W??? 11

12 How... With the very strong communication of the message With the very strong understanding of the customer With the very strong existance of the merchants With the state of the art technology 12

13 The message * a distinct music... * distinct color... The Bonus Green * & a unique reminder object a big black wig... 13

14 The message EARN AS YOU SPEND THE CARD THAT GIVES THE MOST FREE SHOPPING 14

15 The message Branding... Merchandising and Giveaways 15

16 The message Branding... Cinebonus 16

17 The message Sponsorships... 17

18 The message Outdoor Bonus Branding... 18

19 The message Local Bonus Events... 19

20 The Customer Externalization Brand physique: bright green, wig, plus sign, jingle Internalization Personality: Cheerful, young, dynamic, energetic Relationship : buddy, reliable The Card that gives the most free shopping Culture: innovative, leader, dynamic Customer Reflection: the common l Self-image: I am clever and spend my money 20 in a smart way.

21 The Customer Message of Sales at every touch point to the customer 21

22 The Customer Envelopes Advertises Choose 3 stores Campaign Advertises Bonus Plus and Bonus Premium 22

23 The Customer Monthly Bonus Flash 23

24 The Customer Permission-bases segmented & SMS Bonus Card has a special Offer for you at VAKKO! 50% Discount 5 installments or Additional 10% off! Garanti also gives the option to Cardholders to receive sms messages informing them of Current and upcoming Bonus Campaigns. 24

25 The Customer Bonus.com.tr Learn everyting about Bonus Internet Branch Rotating campaigns Internet Application Campaigns to earn extra bonus from the bank Important Message s 25

26 The Customer Smart Statement Important Messages from the Bank Birthday Celebration Message Total bonus earned Bonus earned this spending period Bonus spent for free shopping Remaining bonus Merchant Logos Campaigns are placed next to the appropriate merchant Spending Category Pie Chart 26

27 The Customer POS Receipts Amount of Bonus available for free shopping 27

28 The Customer Cover of Application Form Sign up a friend and earn 5 Bonus! 28

29 The Customer Portfolio Management... The team was formed in 2005 to closely monitor our growing card portfolio to: * Increase customer loyalty and activation with personalized 1- to-1 activities * Monitor customers card life cycles to make offers like limit increases, upgrades, new product upsells, etc. * Minimize customer attrition and create more loyal customers Achieved an average of customer touches/month with a total of more than 50 campaigns covering activation, card acquisition, retention and limit increase activities. 29

30 The Customer The Portfolio Management - Activation Free bag theft insurance for never actives: 12 month insurance coverage for a 3 month spending commitment Customers: 44,666 Response rate: 18% Increase in spend: 17% 50 Bonus New Year s gift = 50 YTL Bonus pre-loaded to low activity card accounts and a 500 YTL spending target provided Customers: 1,001 Response rate: 84% Increase in spend: 23% Hokus Bonus = Aimed at low volume customers. 1 month spending commitment with extra Bonus rewards Customers: 135,125 Response rate: 91% Increase in spend: 39% 30

31 The Customer The Portfolio Management - Appreciation Bonus MVP s #1 = 2 Cinebonus tickets to the highest bonus earning customers who ve been cardmembers for at least 2 years Customers: 1,134 Response rate: 99% Increase in spend: 7% Bonus MVP s #1 = Free Turkcell airtime (25min) or kontor (100) to the highest bonus earning customers who ve been cardmembers for at least 2 years Customers: 3,468 Response rate: 99% Increase in spend: 5% 31

32 The Customer The Portfolio Management - Research Dust Mitt : Aimed at recent inactives who were previously active Customers: 15,000 Response rate: 75% Increase in spend: 10% Talking Card : Also aimed at recent inactives who were previously active Customers: 2,500 Response rate: 43% Increase in spend: 10% 32

33 The Customer Further increasing loyalty - Plus & Premium Collect 75 Bonus in 12 months to reach Bonus Plus status Collect 150 bonus in 12 months to reach Bonus Premium status Activity Rates: Bonus Standard: 75% Bonus Plus: 83% Bonus Premium: 90% 33

34 The merchants Merchants as a Marketing Tool 1. Merchant-specific campains 2. Instant sales finance 3. Instant card application 4. Payment point Bonus is all about capturing the retail transaction at the point of sale. Trx 34

35 The merchants Marketing Tool for The Merchants Multi-branding rather than co-branding BONUS CARD PARTNERS CAN HAVE THEIR LOGOS ON THEIR CARDS 35

36 The merchants -Point of Sale Existance!!! Your Cards...Your P.o.S... And MAXIMUM BENEFIT... to CUSTOMERS, to MERCHANTS and to The BANK 36

37 The merchants POS Newsletter, Merchant Statement & Envelope 37

38 The merchants Bonus Academy Education platforms for merchants Martin Lindstrom Jack Trout Ultimate customer satisfaction in every platform... Guy Kawasaki 38

39 The merchants Bonusloyalty.com Customer Expenditure & Demographics by store 39

40 The state of the art technology 40

41 The state of the art technology Why EMV Infrastructure & Chip Technology Reduce Fraud management Cost Volum e Fraud Allow secure off-line transactions New Issuance opportunities Stronger risk management Small ticket A must to bring added-value SAFER PAYMENTS MORE PAYMENTS ENHANCED PAYMENTS SMART CARD 41

42 The state of the art technology Tailor-made campaigns for 6 million cardholders Almost one to one marketing! * According to frequency of visit * According to total spending * Frequency spending * Cross-sell campaign * Product based campaign * E-purse... Thanks to the Chip technology 42

43 The state of the art technology Applications at P.o.S. * Payment point. * Utility Payment Point * Debt Transfer * Distribution Card * Shared P.o.S. * Multi-Merchant P.o.S. * Multi Currency * DCC (Dinamic Currency Conversion) * Remote Booking System * Loan Application * Instant installment based on customer preference 43

44 The state of the art technology PayPass 44

45 The state of the art technology PayPass in Public Transport Benefits Drive PayPass usage in transit and retail and reinforce top-of-wallet effect Natural target environment for an LVP solution Co-branding opportunities Counter disintermediation threat from transit operators Drive services (e.g. RePower, OBO) and processing revenues (i.e. see all transit transactions) New business opportunities (process non-payment transactions) SEA ÇANAKKALE SAMSUN ANTALYA TAXI TRANSPORT Launched in May 2007 Will be launched in Aug Will be launched in Sept Bonus Trink cards can be used in Bonus Trink cards can be used in New all city cards will be implemented ( contact All municipality buses in the municipality buses in the city contactless) city 100 buses Interface in transportation and tourism areas 120 buses 150 buses, 700 mini-buses and taxsi in the city. 1st in in Europe 45

46 ...& more ogs & kgs With the state of the art technology, EMV facility & Contactless enhangement two more customer solutions OGS KGS * Faster & more convenient than convetional methods ( coins, tickets & tokens ) * Reduces toll plaza delays & traffic congestion * Enable to earn rewards based on loyalty program ( automatic payment inst. on cards ) 46

47 The state of art technology PayPass 47

48 The state of the art technology Licensing BONUS Card Contributes to our brand awareness and advertising Generates licencing and fee income 48

49 49

50 Are Do u still wanna Do not u wanna more satisfied innovative more as freedom a customer products??????...then this is for u... 50

51 Product Features Flexi allows customers to choose their: * Interest rate * Reward rate * Card fee * Campaigns * Redemption type * Card design 51

52 Create Your Own Card 1. Choose your campaign 1- CHOOSE YOUR SECTOR / CHOOSE YOUR REWARD 2- CHOOSE 3 FIRMS / CHOOSE YOUR REWARD 3- REWARD FOR THE HIGHEST EXPENDITURE ON YOUR STATEMENT 2. Choose your financial parameters Interest rate: %3 %3,5 %4 %4,5 %5 %5,5 %6 %6,5 %7 %7,5 %8 4- INSTANT REWARD WHENEVER YOU WANT Reward rate: Card fee: %0 %0,1 %0,2 %0,3 %0,4 %0,5 %0,6 %0,7 %0,8 %0,9 %1 %1,1 %1,2 %1,3 %1,4 %1,5 5 TL 7,5 TL 10 TL 12,5 TL 15 TL 17,5 TL 20 TL 22,5 TL 25 TL 27,5 TL 30 TL Spending Commitment: TL Statement type: Print Additional Services:: Insurance Assistance Concierge 52

53 With Flexi, the customer has the control * Fully customizable credit card * Involves the customer in the entire process of card creation * Tailor made card with over 9000 different financial combination possibilities * Infinite number of card design possibilities * You can create your own campaign, and it never expires! 53

54 Flexi Clipart Gallery 54

55 Flexi Create Your Own Card Design Customers can choose a card design from our clip art gallery Customers can upload a photo of their choice to be used as the surface of their card 55

56 Facts & Figures Change % Number of Credit Cards (x 1,000) 672 7,502 1,017% 3 times more then the market ISSUING Volume (x 1,000,000 USD) Number of P.o.S. (x 1,000) ,11417,965% ,229% 3 times more then the market 2 times more then the market ACQUIRING Volume (x 1,000,000 USD) ,108 6,690% 2 times more then the market 56

57 Pillars of Success Strong branding & communication of Message Solid customer focus... Position your product correctly in the market Taking care of the customer needs Create new categories instead of competing in existing ones Tremendous focus on merchant relations... State of The Art Technology... 57

58 Bonus Bonus 2003 Transportation Card Mirror 2002 Flexi Bonus 2001 Bonus Business Filo Bonus lottery Card Payment points 2000 Bonus Prepaid cards licensing Virtual Bonus Bonus loyalty Gift Card Bonus Academy Bonus Card chip reader Bonus Card Bonus Trink! Bonus Enviorenment GRP Bonus Trink! watch 58

59 THANK YOU 59