Jonas Thomas, Deputy Manager at AL, explains that the PCC strategy was ambitious and so was the implementation. Sending all front-line staff on a two-day sales training and following it up with carefully planned activities was a clear signal from top management that this is important.
Coming up to its centenary, AL stands as one of the strongest brands in the Danish banking sector. So why tamper with success by launching a new Private Customer Concept (PCC).
Constant care
According to Ulrik Stærmose, Executive Head of Business at AL, the answer is fairly straightforward: “The PCC project was launched to sustain positive development and build on our position of strength. We’ve been developing our offering to private customers over the past decade. And we’re proud to see that our efforts have paid off. But in our sector you can’t rest on your laurels” cautions Ulrik and continues.
Winds of change have swept through the banking sector since the financial crisis. The market has transitioned from one of crisis to one of growth; customers are developing into consumers shopping for the best product; digital technology calls for the latest solutions to stay ahead. To name but a few of the challenges the sector has had to tackle.
“Competition in the banking sector is extremely tough. Probably the toughest we’ve ever seen,” reflects Susanne Bechsgaard, Executive Head of Business at AL. “To be a strong player in the Danish banking market, we have to pay close attention to these trends and improve our game to make sure we are the best partner for new and existing customers. And that’s what the PCC project will ensure.”
She continues: "Right from the very first meeting, Implement had a clear understanding of who we were, what we wanted to achieve, and what it would take to get there. Another tremendous strength has been the fact that the project has been in the hands of the same consultants all the way through."
Reluctance to offer clear recommendations
AL conducted an extensive internal analysis to uncover what the bank had to do to future-proof the business and stay competitive in the private customer segment. The analysis uncovered a number of issues that needed to be addressed.
Among them was customer segmentation. “Our existing segmentation was too complex, and it grouped too many customers in the ‘full-scale service’ category,” explains Jesper Nielsen, Head of Strategy & Business Development at AL. “This meant that we were trying to do too much for too many. With a more precise identification of customer groups and their needs, we would be able to provide the right level of service to the right group of customers.”
The study exposed another important issue. Customer satisfaction surveys among AL’s existing customers had averaged high scores. But one very important group of customers – those now identified as priority customers by the new segmentation model – had ticked the ‘less satisfied’ box. “Our internal survey showed that those of our customers with the most funds to place in the bank experienced AL as reactive rather than proactive. They expected more from us,” says Jesper.