Central & Eastern European Small and Medium

Enterprises Financing 2005

Diversification of Products

Tomasz Tomaszewski
Pekao S.A.
Director
Marketing Strategy and Product Development
 Agenda

Pekao SA SME Bank in Poland

Simple vs. complicated product range

Cost effectiveness of SME product

Pekao SA SME Bank in Poland

Retail Banking Corporate Banking

Division Division

Individual
PIONBanking Private Banking
BANKOWOCI
Division Division
INDYWIDUALNEJ

VIP/SME
 Pekao SA SME Bank in Poland
Bank has 800 outlets in whole Poland - it gives our clients easy access to banking services.

Adviser Centre VIP

162 branches in Poland

(800 outlets)
1500 Advisers and Credit
Officers
 Pekao SA SME Bank in Poland
Bank has specially trained and prepared 1500 VIP/SME

Advisors and Credit Officers, and they:

have deep knowledge of functionality of SME companies

understand their financial needs

can advice clients what product will satisfied they needs

 Pekao SA SME Bank in Poland

In every branch there is a special place called VIP Corner our

SME clients can discuss all the issues with their Advisor

discreet

guaranteed privacy

modern and quiet

no queues

Our SME clients can discuss all the issues with just one
Advisor
 Agenda

Pekao SA SME Bank in Poland

Simple vs. complicated product range

Cost effectiveness of SME product

Simple vs. complicated product range
In 2004 the Bank made a research on SME clients, asking
the question What is the most important in their
relation with the bank?

Comprehensive Customer Satisfaction Study over 21,000 interviews

planned (all clients retail, VIP, private, SME and corporate)

Focus on several different segments/populations of customers

specifically:
VIP 4795 interviews
SME 4801 interviews

TNS TRI*M Stakeholder Satisfaction & Customer Retention

Management system used
Fieldwork: August-November 2004
 Definitions - TRI*M Index

The TRI*M Index is based on the answers given to the following questions:

How would you rate the overall performance of Overall Performance

products and services of company?
SATISFACTION

How likely are you to recommend the products and Recommendation

services of company to friends/ companies?
TRI*M
Index
How likely are you to purchase the products and Repurchase
services of company again?
LOYALTY
How would you rate the competitive advantage to Competitive
you from dealing with company rather than with any Advantage
other company in this market?
 Definitions - TRI*M Customer Typology

S
a APOSTELS
t highly satisfied and loyal
aim of marketing
i MERCENARIES
s highly satisfied,
f but not loyal 10 * TERRORISTS
seeking for the Market
a best alternative = Resistance
Ratio
c 3 * APOSTELS
HOSTAGES
t dissatisfied, but
i TERRORISTS tied to the company
dissatisfied and not by contract,
o loyal, disturbing technology or other
n business barriers

Loyalty
 Definitions - TRI*M Grid

high
Hygienics Motivators

What customers
Stated Importance
(like to) talk about

Communication
Axis

Hidden
low

Potentials?/Savers? Opportunities

low Impact on Customer Retention high

What differentiates retained from not retained customers

What really pays back through loyalty
Action Axis
Identifying Key Drivers of Customer Relationship

high
Hygienics Motivators

Stated Importance
Performance
far above average
above average
average
below average
far below average

Potentials?/ Hidden
low

Savers? Opportunities
low Impact on Customer Retention high
 Marketing research example of study

Hygienic - Play important role to Clients

TRI*M Index
communications but has small influence
on Clients loyalty

High
Hygienics Motivators
Motivators - They are deciding about
tying Customers to company
F03
Potentials Savers they has little or
F04 F04
none influence on Clients loyalty F02
Hidden Opportunities they will help to F02

Stated Importance
F03
achieve competitive advantage when the
motivators potential is exhausted
F01
F01

All parameters combined on analyzed

measurement has below average result.
First of all company has to work on parameter
F04. This parameter is on Motivators quadrant
and has the lowest result of performance (far
below average).
Low

?/Potential Savers Hidden Opportunities

Performance Average Low High
Impact on Customer Retention
Far above average Below average
Above average Far below average
Simple vs. complicated product range

What is the most important in their relation with the

bank?
All the answers by SME where nearly the same:
easy access to financing
easy product and easy procedure

To fulfil the clients expectation, Bank made few initiatives,

three of them are described on the next slides.
 Simple vs. complicated product range
Case 1. Campaign Loan for You

Many SME companies need external financing, but they think that:

- loan documentation is complicated,

- bureaucracy is like difficult to cope,

- they do not have enought knowledge about loans,

- they do not knot how to use relavant loan products.

To change this way of thinking Campaign Loan for You was prepared.
 Simple vs. complicated product range
Case 1. Campaign Loan for You

Target Group:
clients with long relation with Bank (more than 12 months)

clients with regular inflow on Current Account

clients without any loan in Bank

Process:
Preeliminary evaluation of potential clients on the HQ level

Branch Director recomendation

Check in negative data bases

personalize mail to each client with explanation how this loan is functionin
 Simple vs. complicated product range
Case 1. Campaign Loan for You

Product:
The most flexible product for SME - loan in current account,

The possibility to many withdrawing money up to gronted limit

Changes:
simple evaluation process decision and signing loan agreement in the
same day

simple application just 2 pages

Simple vs. complicated product range

Case 2.- Maestro Business - Debit card for SME clients.

Problems:
long queues to Cashiers

limited access to cash on current account

Solution:
debit Card

issued in MasterCard system

Simple vs. complicated product range

Case 2.- Maestro Business - Debit card for SME clients.

Solution:
24 h access to cash trough ATMs (1200 Banks and 300 in Euronet
network)

withdrawing cash from those ATMs free of charge

large network of POS accepting Maestro Business for payment

without commission

Process
One page application form

Card is issued in 24h

 Simple vs. complicated product range

Case 3. - Leasing - simple PAL offer

Leasing product PAL was implemented into Bank braches.

Standard Leasing PAL Leasing

standard documentation
Standard evaluation made by Pekao
Leasing
Whole documentation is agreed and
collected by Pekao Leasing
Standard decision process (
Leasing agreement is signed in Pekao
Leasing branches only (26 locations)
simple documentation (just those
documents which clients have in the
drawer)
On- line scoring system (initial)
Whole documentation is collected by Bank
branches
Quick decision process up to 2 days
Leasing agreement is signed in the
branches
 Agenda

Pekao SA SME Bank in Poland

Simple vs. complicated product range

Cost effectiveness of SME product

 Cost effectiveness of SME product

Cost effectivness can be seen from diffrent

perspectives:
Marketing materials
Product design
Distribution channels
Time of advisors and other staff

.... and many many more

 Cost effectiveness of SME product

Unia Loans one brand one product

many EU grants programs

First step:
Action 2.3 the biggest value of EU grants -358 mln
Euro
one specially dedicated product for those grants
one programme
marketing action BTL, internet, clients conferences

Now
many programs
still one loan
the same marketing actions
Cost effectiveness of SME product

Direct Europe
portal which allow
SME to find, create
and check the
application for UE
Funds.

Potential Clients
should register at
the beginning, it is
necessary to use it.

Perfect source of
new clients!!
 Cost effectiveness of SME product

Campaign Loan for You

Time savings for credit officers and advisors simple evaluation

process simple analysis suppoerted by

Cost and efforts efficiency - Strictly targeted marketing campaign

towards given database influenced very high response rate (over 30%)
and good general results.

Maestro Business Card

time savings for cashiers

less problems with delivering, protection and keeping cash in cashiers
 At the end...

Please remember
Understanding of customer is the a must in product
developement

Simpler products are more powerfull and more

appriciated by clients but.... sometimes difficult to
implement

Consider cost effectivness of SME cliensts from

diffrent perspectives.
Thank you