Internet Acquision Strategy of Bankinter
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G r o u p 3 – N a t a r a j P a n g a l | S h a n k a r i G | T a j a n J o s e s p h | V i n i t h G o p a l a k r i s h n a n Internet Acquisition Strategy Click icon to add picture
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The case involves SWOT, Pros and Cons of different strategies employed by Bankinter, Customer Profitability Analysis, Insights and Recommendations to improve profitability. It also includes the evaluation of the IberianWines proposal
Transcript of Internet Acquision Strategy of Bankinter
Group 3 – N
ataraj Pangal | Shankari G |
Tajan Josesph | Vinith Gopalakrishnan
Internet Acquisition Strategy
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Case Facts..
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Bankinter
Small Independent National Bank
282 Branches
2964 Employees
1230 Agents
EURO 21.4b Assets
Positioning
Innovative
Multichannel
Low-Cost
Financial Services
Growth
Started in 1965
First Multichannel Bank
Forayed into Online Banking
37% of transactions - Internet
Organic Growth
Internet Strategy
Partnering - Portals
Internet Branch
Transform into Multichannel
Internet Acquisition Growth
Dec 00 – 40,000 Customers
Dec 01 – 120,000 Customers
Formalized Customers
Non-Formalized Customers
SWOT Analysis…
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Strengths-Multichannel Banking and Customer Interaction-Early mover into online banking-Ebankinter.com ranked amongst the best online financial site-Offers Unique, Price-sensitive & Innovative services-CRM system – Stored and tracked customer information-Customer centric approach
Weakness-Difficult to cross-sell products online-High number of Nonformalized clients-Changing Internet strategy
Opportunity- Low Internet penetration in Spain- Internet – provides opportunity for diversification
Threats- Online customers less loyal- Small players can enter the foray- Internet bust
Internet Customer Acquisition Strategy…
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Pros Cons
Brand was hidden
Pay for each customer acquired
Staff shortage
High Cost Replicate System
CoBranding
High Traffic dominant sites
Developed Alliances
High upfront Annual Fee
Alliance Strategy
Cons Pros
Difficult to duplicate
CRM – Customer focused
Lowered Acquisition Cost
High Traffic Sites
High Number of Nonformalized customers
Lack of Targeting
Regardless of Content
Incentives
eCollaborator Strategy
eCollaborator Strategy Analysis…
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Customer Profitability Analysis
Profitability.xls
Unformalized Customers - 33000
Increase Profitability
Increase Retention of Profitable
Decrease Ratio of Non-Profitable to Profitable
2.12 NonProfitable to Profitable Ratio - Profitable
Increase Attrition of Non Profitable
Insights
EURO 30 Incentive
Credit Card 50% Users
Low Internet Penetration - Spain
Recommendations
Focused Targeting
Banners on Sites related to Segment
Give Incentive in Installments
Leverage on CRM
Rebates & Cross Sell
Loyalty Programs
IberianWines.com…
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Assumptions – Worst Case Scenario
67 – Affluent | 33 - Students
All Students are unprofitable
100 Clients
CF – Affluent CF – Profitable 8700 Segment
CF – Students CF – UnProfitable eClbtr Segment
Attrition Rates remain constant
Calculations
Weighted Profitability
Scenarios
Recommendations
Display Banners only on Affluent
Display Banners based on Number of Transactions
Minimum 24% Acquisition rate
Incentivize Customers to use Bank for Wine Transactions
THAN
K
YOU
