NPS and Lean Six Sigma Driving Growth in Consumer … and Lean Six Sigma Driving Growth in Consumer...
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NPS and Lean Six Sigma Driving Growth in Consumer Finance Mark Begor July 26, 2006 GE Consumer Finance “This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.”
Transcript of NPS and Lean Six Sigma Driving Growth in Consumer … and Lean Six Sigma Driving Growth in Consumer...
NPS and Lean Six SigmaDriving Growth in Consumer Finance
Mark BegorJuly 26, 2006
GEConsumer Finance
“This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.”
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Americas overview
Assets / originations ($B) Reach
Originations
Assets
'04A '05A '06E
~$93
$49
$78
36 45~56
13
33~37
'03A
$27
Customers 56 Million
Retail Outlets 40,000
Dealers 130,000
Brokers 14,000
Branches 420
ATM’s 2,600
Fast growing, focused consumer finance company
$646 $872 ~$1,080$465NI $MM
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Targetedproduct line
Multiple distribution channels
Targetcustomers
Telemarketing
ATM / Kiosks
Internet
Bank Cards
Personal LoansSales
Finance
Mortgages
Auto
Deposits & Insurance
Retailers
Branches / Partner Points
Brokers
Dealers
Focused provider of consumer finance products
PLCC
What do we do?
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Customer Acquisitions
B2B Originations
Point of Sale
Quick Screen
Terminal
On-Line
Fax
Phone
On-Site Kiosk
On-Site GE Resources
Strong focus on B2B processes … easy to offer credit … easy to apply
D2C
B2B
4%
96%
Channel
5
• Home Improvement• Furniture / Electronics• Dental / Healthcare
• Powersports• RV/Marine• Jewelry
Assets ($B)
$9$12
$16
’04A ’05A '06E
Business model focused on helping dealers sell big ticket products with credit
U.S. retail sales financeGE product focus
127,000 dealer locations
4.8 million customers
33%
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Survey Results Driving ChangeDealers
Credit Culture
Price
Service
Approval Rate
Communication
Consumer APR
Commercial Product
More Special Promos
Single Terminal Solution
Net Performance (5 minus 1-3)
+2
+10
+14
+25
+23
+18
+15
+2
+11
“Enrollment process takes too long”
“Welcome package is confusing”
“Training is a problem”
“Too much paperwork; need to simplify”
“Need More Financing Options”
What We Heard
NPS providing critical input to improve dealer experience
1. New Dealer Enrollment
2. Funding Process
3. New Products
Key Improvement Areas
Baseline NPS Score: 46
Using NPS to pulse dealers
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LeadGenerated
ApplicationReceived
ApplicationApproved
FirstTransaction
Welcome KitDelivered
Dealer TrainingCompleted
Dealer enrollment process too slow & complex
Only 40% of our Dealers transact every month
Focus: improve new dealer process
What we Found
23,000 New Dealers Added /
Year
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22
Dealer enrollment process
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300+forms
Data re-keyed8 times
55 DataEntry Points
3,000+ Componentsin Welcome Kits
Old process took 63+ days and was very complex!
“Pre-lean” dealer enrollment process
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92% 80% 30%
•Standard Work (Web, App)• ‘Selling’ Mindset
•Process Simplification•Digitization
•Marketing Content•Value Proposition•Rapid Notification
Prospect Enroll Activate
Pre Post Goal Pre Post Goal Pre Post Goal
12 days
1 4
21 days
0 1
30 days
21
1
Lean Value Stream Map – “Goal”
Reduce 63 DayLead Time to
Next Day Capability
Driving to 1 day capability … Enroll today, transact tomorrow
Post lean impact
10
44%
24%
36%
Ticket size$1300
$900
No financing With financing
Annual sales
Close rate62%
50%
No financing With financing
$476K
$350K
No financing With financing
* Based on ADCPA study – july 2005
36% lift in dealer sales volume with credit
Benefits to dealers
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$72MM $84MM $60MM
ActivationRate
Applications xApproval
RateAnnual Sales/Active Dealer
x x
23,000 94% 40% $58,000
12% Lift in Sales
15% Lift in Activation
11% Increase In Apps
Prospect ActivateEnroll
Faster enrollment … higher activation …$216 million incremental volume!
New Dealer Volume
$500 Million / Yr
=
Benefits from Lean
The GE “opportunity”
43% Lift
+$216 Million
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Global rolloutExamples of lean focus areas
Reduce Mexico mortgage application cycle time
Decrease Australia branch loan processing cycle time
Improve US corporate card new client integration time
UK home lending same day offer
2006 NPS rollout
1H’06
France Hungary UK USA RSF
Thailand
India Australia Italy Austria
Portugal
2H’06
Denmark Latvia USA RCF
GermanyCzech Hungary Turkey
Poland
Driving Growth with NPS and lean across consumer finance
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Growth & Margin Expansion
Analyst MeetingJuly 26, 2006
