Case Study / Increasing Share Of Wallet Through Customer Centricity. 01/ The Situation

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1 Case Study / Increasing Share Of Wallet Through Customer Centricity 01/ The Situation One of Australia s top four banks has a history that dates back over 175 years. The Bank is committed to building lasting partnerships with its customers, shareholders, and communities in 32 countries including Australia, New Zealand, throughout Asia and the Pacific, and in the Middle East, Europe, and America. It provides a range of banking and financial products and services to around 8 million customers and employs 48,000 people worldwide. The Bank aims to become a super-regional bank, growing its presence

2 in the Asia Pacific region and sourcing 25-30% of earnings from its Asia Pacific, Europe, and America divisions by 2017, while also being very focused on growth in core domestic businesses in Australia and New Zealand. As part of its Main Bank strategy, set by their CEO, the Retail Bank seeks to increase its share of customer wallet, drive an increase in customer loyalty, and change the customer experience from transaction- to customer-centered, immediately and in the future. The main focus was to convert customer enquiries and maintenance transactions into sales. Also, focus had to be given to having a full conversation to capture customers current and future needs in banking and finance to cover the complete financial spectrum in the long term. 02/ What we did rogensi conducted a needs analysis across the Retail Bank to determine the capabilities that should be developed and for whom. rogensi then designed a solution called Sales Accelerator, based on the following methodology: EVALUATE: We conducted focus groups, interviews, online assessments, and had consultants participate in Day-in-the-Life experiences and Mystery Shopping to evaluate and diagnose how we could improve performance and the customer experience. EXCITE: rogensi ran conference-style sessions with State Managers, District Managers, Branch Managers, and Home Loan Managers throughout Australia to provide context for the solution, ensure alignment, and outline their role in coaching and embedding change after implementation. ENGAGE: rogensi ran pilot programmes for design and delivery of the solution to confirm its effectiveness and then put 65 District Managers through an accreditation process to deliver the programme. The rollout was then delivered to 3,000 bankers in Australia. The timeline for the project was from November 2011 with the end planned for end June EMBED: rogensi is now in the embedding phase which has separate stages occurring after 30, 60, and 90 days from the completion of the programme. 04/ The Results The Retail Bank has reported a significant increase in the quality of conversations with a before and after measurement tool used by each banker during a customer conversation. In branches where increase in sales effectiveness is measured, there is already a minimum 10% that is attributed to this project.

3 05/ The Verdict The following testimonials have been volunteered by various Managers: Personal Banker Albury, NSW Just wanted to quickly share an experience that I had with a customer. An appointment had been made for him to come in and discuss a $15,000 personal loan, after completing the Conversation Set Up (WWHO), the customer was extremely open and excited about the prospect of talking to me. He pointed out that family and career were most important to him. After further probing I discovered that customer had two mortgages, two credit cards, needed a new car, and had no protection for income or family s future (life). He had also been retrenched two years ago, and had faced six months in-and-out of employment and financial hardship until stable employment had been found again. After lengthy discussions and after the customer went into depth, in his time and on his terms, I was amazed at how much info he gave me! The customer is now booked in to see the financial planner to protect himself and his family s future and we have completed a consolidation of his credit cards. He is booked in to complete a supplementary loan to purchase new car as well as bringing home & contents insurance to our bank, as he wants everything in one spot. This programme and project has helped me to better my customer interactions and has been extremely rewarding. The customer walked out with a smile on his face! Senior Personal Banker/Home Loan Specialist, Mansfield, Vic I just thought I would share with you my first customer review after yesterday s learnings. I had a young woman come in today to close off one of her access accounts as she had two and was paying fees for both. I was able to load fee waiver on her access where her wages were going. After fixing her initial query I asked if I could go over her whole financial position to see if there was anything else I could help her with. She agreed to a review. Among other things I asked what her living arrangements were and she told me that she owns her own unit and is renovating it. I asked if she had that insured and she said it was insured under a body corp. I asked if she had her contents insured and she said no that she didn t have anything worth insuring. I questioned this and asked what contents she had. I explained that her carpets and curtains were also contents and that basically if she tipped her home upside down, everything that fell out was contents. I said if it burns down, how would you replace all those items?. I asked if she owned her home outright and what were her plans for that. She told me she had a mortgage with a competitor bank and owed $120k and that after renovations it would be worth $150k. She planned on building a house down the track and turning the unit into an investment property. She would like to start a family in next 5-10 years as well.

4 To cut a long story short, the opportunities include: Possible refinancing of existing home loan. Insurance policy written today for contents. Car insurance due in June, will switch to us. Has a savings plan with another bank but wants to keep that for now. Set up a money app for her on her iphone and ordered her a visa debit card. She has one of our credit cards, already happy with that for now Her partner is a self-employed plumber in Melbourne so further connection down the track with that. So, after coming in to close off an account she left with a lot more to think about than that! Branch Manager, Ivanhoe, Vic I wanted to share a success story from the training. I met a customer standing in the service line last Thursday, who wanted to simply unlock her internet banking. A great or unfortunate example of where sales staff could just do the minimum. However I thought this would [provide] a great opportunity. I mentioned that with our busy schedules many customers in Ivanhoe do not have the time to come into the branch, so it s excellent that you were able to come in today. Now I will get your internet banking re-activated but [we re] also going to take this opportunity to review and maintain all your accounts with us; and as branch manager you ve got a fantastic opportunity to ask me any questions related with your financial needs The customer asked if I could help with a home loan issue and that started a snowball effect. Now while this is no certainty for a refinance it s such a prime example of winning the lost opportunities. A full interview has been set for this week and with the customer and we can get our ducks in a row and can make this work quickly. Personal Banker, Central, Vic Had a review yesterday with a senior customer in which I asked what he was interested in. He said he was thinking about retiring at the end of the year. Now he s bringing his statements in next week for us to see what we can do with his $680k. Was a good first review following the training. Showed that when we use it, [we] can help to create sales! Senior Personal Banker, Belmont I just wanted to let you know a success story I had with help from the Sales Accelerator training. I had a great referral on Friday for a full-time student who only had a progress saver and personal loan with us she said she did her main banking with another bank. After introducing the review process to her and giving her the six categories (from which she happily chose three) my finishing line was: What can

5 I do personally to bring your account over and have you banking with us full time? She said she would be happy to move over the following week. We opened the account and she is now a happy Main Bank customer. It took some personal courage for me to take the leap and ask the question, but it was worth it in the end and I highly doubt she knew it was my first time asking someone. Branch Manager, Glass House Mountains I have had the most amazing interaction with a customer - it has left me feeling so elated. The customer s mother phoned for an appointment for her son Colin to speak to someone about his home loan. I took the call and made the appointment myself. Mother and son arrived for the appointment and as I knew the background on what they were trying to achieve, it helped. I did my Set Up (WWHO): Thanks for coming in and I understand we are looking at trying to increase your loan to cover the costs associated with the completion of your home. What I also need to do is look at your overall financial situation as I need to ensure that once the increase in lending is in place all of your accounts are working for the same goal. Today we can cover several areas in your life but can you tell me what is the most important to you so that I can ensure that I understand your goals more. Colin chose Home, Career and Family. I asked him which was the most important of these three and he told me it was home. I did an amazing job of using the digging for gold technique. I know that you have been working at getting this house finalised for quite some time, tell me about the house. He then proceeded to give me the description and then pulled out photos and plans (had the emotional connection), the rest proceeded quite well. Colin agreed to MPI on the new lending and an appointment later on. My question was, describe to me what you have in place to keep your home if you are unable to maintain your loan repayments due to accident or illness?. The total solution for this customer: renewal of existing loan changing to simplicity plus (showed how he could save time and money by maintaining his existing repayments he can save $140k in interest and own the property in 10 years instead of 25) Write and refer, as well as H&C insurance. I was advised that two colleagues had previously tried to get him into FP and failed.

6 What can we do for you? rogensi.com