I just got an email from HDFC Bank Limited. The mailer is supposed to promote net banking. It uses opening a fixed deposit using net banking and goes into various features available. The mailer ends with a four step guide on how to open a fixed deposit using net banking from HDFC Bank Limited.
So far so good. Maybe an interesting mailer.
I open a fixed deposit every month using "net banking of HDFC Bank". {Yeah.. thats how my savings go... me no risk taker on the share market}. As I was going through the mailer, I was getting a feeling of being taken for a dummy. Why is the bank teaching me the ABCs of opening a fixed deposit on the net? Why did they not check my transactions with them on the net? Why did they not know that I am already a master of opening fixed deposits on the net?
I had written a post two years back on the same bank. Here is the link. I so wish the marketer does his homework. Show some respect to the customer. Spent some effort on understanding the customer.
Now if only they teach me how to use futures and options... me heard one cannot lose money there... but then me a dummy when it come to futures and options.
If you find this interesting, dont forget to share it. Also, get yourself registered as my follower... there are more stuff coming up which you sure dont want to miss.
Tuesday, August 31, 2010
Friday, August 13, 2010
We dont need METERJAM... we need DISCIPLINE
Yesterday was the "MeterJam" day. A lot of noise have been created over this. There is facebook, twitter, and t-shirts. Today the papers scream of it being a success. Its "AHHH POOOOH". It you were at Andheri Station in the morning, it was everyday chaos. People were stepping out of the railway station and running behind auto-rickshaws. The rickshaw drivers were refusing almost all the fares till they get one to the place of desire. And considering the number of people, each rickshaw found a fare to the place of desire. But the same cannot be said of the people trying to hitch a ride.
Compare this scenario with the one that existed prior to the construction activity at the same location. There was a auto-rickshaw stand next to the station. A RTO officer diligently forced every auto-rickshaw to join the queue at the rickshaw stand. People stood in a queue in a disciplined manner. It was a first come first served case. No rickshaw driver ever refused. Well, there were some exceptions. But then the collective public force and the RTO officer presence resolved it in favour of the public immediately.
When the construction activity started, the rickshaw stand was disbanded. That brought out the Darwinism in each one of the people. Everyone started running after the rickshaws pulling into the station area. It was survival of the fittest.
Nobody thought of redefining the rickshaw stand at a different location and showing the same discipline.
Let me think from the perspective of the rickshaw driver. I am trying to maximize my revenue for the day. And most probably the rickshaw does not belong to me, in which case I need to submit my daily rentals for the shift of using the rickshaw. This maybe anywhere from Rs. 100 to Rs. 200. I need to fill in petrol (or CNG) before I return the rickshaw. After this, any leftover cash is my earning for the day. When I think of it, its probably sufficient but not enough. So when I start my rickshaw shift, I am thinking the minimum I need to earn and the maximum I can earn that day.
Over the period I have learnt the flow of people traffic and have set up a pseudo algorithm in my brain. So when a person asks me to drop him at Sahar Road, I quickly analyse my past experience. I realize that after this trip, I would not get another trip from Sahar Road. I may have to either wait for a fare (wasting precious time) or drive to another point of demand (wasting precious fuel). Now another person asks me for a trip to Saki Naka. I realize this is longer trip and I will definitely get another fare from there immediately. So I prefer this person over the earlier one.
This is very much what a corporate would do. Given a choice of different customer needs cluster, it will select the one that would give higher revenue over the lifetime. But nobody would cry foul. No METERJAM for the corporate.
I don't think METERJAM was a success. Neither do I think it is any solution. What we need is public discipline...which is so lacking in our country. What we need is appointed rickshaw stands at every alternate block or street (not more than, say, 5 to 8 minutes walking distance). Like Singapore, a rickshaw should only be allowed to pickup and drop customers at the stand (unless he is travelling to a private area such as the society compound .. in which case the fare is extra Rs. 5). This is what will solve the problem. Not boycotting rickshaws and taxis.
Looking forward to your views.
Compare this scenario with the one that existed prior to the construction activity at the same location. There was a auto-rickshaw stand next to the station. A RTO officer diligently forced every auto-rickshaw to join the queue at the rickshaw stand. People stood in a queue in a disciplined manner. It was a first come first served case. No rickshaw driver ever refused. Well, there were some exceptions. But then the collective public force and the RTO officer presence resolved it in favour of the public immediately.
When the construction activity started, the rickshaw stand was disbanded. That brought out the Darwinism in each one of the people. Everyone started running after the rickshaws pulling into the station area. It was survival of the fittest.
Nobody thought of redefining the rickshaw stand at a different location and showing the same discipline.
Let me think from the perspective of the rickshaw driver. I am trying to maximize my revenue for the day. And most probably the rickshaw does not belong to me, in which case I need to submit my daily rentals for the shift of using the rickshaw. This maybe anywhere from Rs. 100 to Rs. 200. I need to fill in petrol (or CNG) before I return the rickshaw. After this, any leftover cash is my earning for the day. When I think of it, its probably sufficient but not enough. So when I start my rickshaw shift, I am thinking the minimum I need to earn and the maximum I can earn that day.
Over the period I have learnt the flow of people traffic and have set up a pseudo algorithm in my brain. So when a person asks me to drop him at Sahar Road, I quickly analyse my past experience. I realize that after this trip, I would not get another trip from Sahar Road. I may have to either wait for a fare (wasting precious time) or drive to another point of demand (wasting precious fuel). Now another person asks me for a trip to Saki Naka. I realize this is longer trip and I will definitely get another fare from there immediately. So I prefer this person over the earlier one.
This is very much what a corporate would do. Given a choice of different customer needs cluster, it will select the one that would give higher revenue over the lifetime. But nobody would cry foul. No METERJAM for the corporate.
I don't think METERJAM was a success. Neither do I think it is any solution. What we need is public discipline...which is so lacking in our country. What we need is appointed rickshaw stands at every alternate block or street (not more than, say, 5 to 8 minutes walking distance). Like Singapore, a rickshaw should only be allowed to pickup and drop customers at the stand (unless he is travelling to a private area such as the society compound .. in which case the fare is extra Rs. 5). This is what will solve the problem. Not boycotting rickshaws and taxis.
Looking forward to your views.
Monday, August 02, 2010
Come grow with me...
Recently while discussing with a prospect in life insurance, something just clicked me regarding upselling. All along we have been talking of selling more and more policies to existing customers. So goes the definition of cross sell (or up sell). I was discussing the applicability of analytics in cross sell with this gentleman from the prospect company.
Suddenly, it was like an eureka movement. I realized that I have a Rupees 1 lakh policy that I am still servicing. This was opened during my first year of employment. A friend had joined as an agent of LIC and he convinced me to go for it. Naive as one is regarding insurance at that stage of first true employment, I promptly went for it. Today, I realized that the value of the sum assured is not significant. How long can a family sustain on 1 Lakh in a city like Mumbai?
I get calls almost regularly from an LIC agent (not the friend who sold me... he has probably moved on in life and moved away too) trying to sell me a new policy. But I somehow always resist actually purchasing one.
Now if someone can realize that its been over 15 years for the Rs. 1 Lakh policy and in these 15 years the value of the Rs. 1 Lakh has fallen to a tenth. While my worth and salary has grown multi fold. If someone could converse with me and show me how this policy needs to increase and provide me a simple hassle-free method of topping up the policy to 10 times the amount, I would gladly go for it without thinking twice. But in trying to sell me another policy, LIC is creating a barrier and probably initiating a process of comparison with other companies.
When I mentioned this to my prospect, he was just equally stumped. I dont know why a life insurance company does not track its customers and increase the policy coverage on the same old policy. The customer is a known customers and after 5 or ten years, the customer is probably also a good customer. Getting an increase in the sum assured on the existing policy is so much easier than selling a new policy. Probably if someone from the life insurance industry is reading this, maybe you can answer why this is not attempted? If this has not been thought of then maybe i can lay a claim over this mode of selling. And dont tell me its a nightmare for the Acturial department to come with tables for every year of vintage of existing customer. The increased premium and more importantly the lock-in of the customer is justification enough.
Suddenly, it was like an eureka movement. I realized that I have a Rupees 1 lakh policy that I am still servicing. This was opened during my first year of employment. A friend had joined as an agent of LIC and he convinced me to go for it. Naive as one is regarding insurance at that stage of first true employment, I promptly went for it. Today, I realized that the value of the sum assured is not significant. How long can a family sustain on 1 Lakh in a city like Mumbai?
I get calls almost regularly from an LIC agent (not the friend who sold me... he has probably moved on in life and moved away too) trying to sell me a new policy. But I somehow always resist actually purchasing one.
Now if someone can realize that its been over 15 years for the Rs. 1 Lakh policy and in these 15 years the value of the Rs. 1 Lakh has fallen to a tenth. While my worth and salary has grown multi fold. If someone could converse with me and show me how this policy needs to increase and provide me a simple hassle-free method of topping up the policy to 10 times the amount, I would gladly go for it without thinking twice. But in trying to sell me another policy, LIC is creating a barrier and probably initiating a process of comparison with other companies.
When I mentioned this to my prospect, he was just equally stumped. I dont know why a life insurance company does not track its customers and increase the policy coverage on the same old policy. The customer is a known customers and after 5 or ten years, the customer is probably also a good customer. Getting an increase in the sum assured on the existing policy is so much easier than selling a new policy. Probably if someone from the life insurance industry is reading this, maybe you can answer why this is not attempted? If this has not been thought of then maybe i can lay a claim over this mode of selling. And dont tell me its a nightmare for the Acturial department to come with tables for every year of vintage of existing customer. The increased premium and more importantly the lock-in of the customer is justification enough.
Tuesday, July 20, 2010
Dread that visit to the bank
This is the time of the year to get all paperwork ready for tax filing. Which reminds me that I need to visit my local bank to get my housing loan repayment statement. Which also reminds me that I hate visiting this bank. The process is so cumbersome and I have to visit three desks to get my statement. Thinking of it, since its a statement that every loan holder would need, the bank should proactively give it.
This also reminds me how I hate going to one other bank because of the guard giving a loud vocal alarm announcing my entry. See my earlier post "too-eager-to-serve-frightens-customer".
I also hate going to my regular bank branch since it is so crowded that there is no place to stand without touching somebody else. The last time I was there, there were a couple of kids running and screaming all over... adding to the chaos. And I was still waiting to be served.
The local branch of the largest bank is no better. The queues are so long and snakes through the branch. Right from the entry, one has to work through a maze. Just like the snake games on mobiles... only one survives by cutting across the snake body rather than the ends.
I wonder if it is just me or others also face this annoying situation. I am running a survey on experiences during your last bank visit. Kindly fill the survey at "Last Day at the Bank".
Also, I would appreciate if you pass this on to others.
This also reminds me how I hate going to one other bank because of the guard giving a loud vocal alarm announcing my entry. See my earlier post "too-eager-to-serve-frightens-customer".
I also hate going to my regular bank branch since it is so crowded that there is no place to stand without touching somebody else. The last time I was there, there were a couple of kids running and screaming all over... adding to the chaos. And I was still waiting to be served.
The local branch of the largest bank is no better. The queues are so long and snakes through the branch. Right from the entry, one has to work through a maze. Just like the snake games on mobiles... only one survives by cutting across the snake body rather than the ends.
I wonder if it is just me or others also face this annoying situation. I am running a survey on experiences during your last bank visit. Kindly fill the survey at "Last Day at the Bank".
Also, I would appreciate if you pass this on to others.
Monday, July 05, 2010
Participate ... Don't just Communicate
Go back to your college days. Whose discourse was more impactful? The professor who placed himself at the head of the class and just finished off that day's topic. Or the college senior who agreed to spend an hour with you to explain the same topic (in exchage for a beer). Or in my case, in exchange for sharing a bowl of Maggi Noodles at a classmate's hostel.
Often most campaigns are run like communication engines. Some message is defined to be communicated. The creative guys come in... with their accented language and maverick looks. They start discussing pictures and layout on the message medium. Finally, the d-day arrives and the message is broadcasted (or in case of database marketing ... mailed across). A lot of science goes in to test and decide the most appropriate content and format for the message.
Now, the campaign owner waits... and keeps calling the analyst to check on the number of responses.
These are akin to a politician standing on the podium just communicating his propaganda. What is needed is for the party worker to meet each citizen and take part in the discussion related to the citizen's life. There is a need to participate.
This is very difficult in mass marketing. In fact, most database marketers also run their campaigns as "mass marketing". The only difference is they have a "filter criteria" and know to whom the message is going. But they have no idea of whether the time and place is a right one. There is no pre-campaign message to gauge the receptiveness of the campaign message.
It is very effective if the campaign are designed as a series of dialogues rather than as just one great message. Campaigns should start off with a message identifying the state of the customer. For example, an general insurer targeting flight insurance could start off with a message asking the customer if "he has flown in the past 5 days?". Based on his response, the next message could be sent. Its like a dialogue with the customer which slowly leads to establishing the pain, need and finally the solution.
I agree that this will increase the cost of communication... but it will offset by the increased offtake.
I will be happy to work out a pilot in my free time to establish this theory. Mail me at michaeldsilva@gmail.com if you think we can employ this strategy in your business.
Often most campaigns are run like communication engines. Some message is defined to be communicated. The creative guys come in... with their accented language and maverick looks. They start discussing pictures and layout on the message medium. Finally, the d-day arrives and the message is broadcasted (or in case of database marketing ... mailed across). A lot of science goes in to test and decide the most appropriate content and format for the message.
Now, the campaign owner waits... and keeps calling the analyst to check on the number of responses.
These are akin to a politician standing on the podium just communicating his propaganda. What is needed is for the party worker to meet each citizen and take part in the discussion related to the citizen's life. There is a need to participate.
This is very difficult in mass marketing. In fact, most database marketers also run their campaigns as "mass marketing". The only difference is they have a "filter criteria" and know to whom the message is going. But they have no idea of whether the time and place is a right one. There is no pre-campaign message to gauge the receptiveness of the campaign message.
It is very effective if the campaign are designed as a series of dialogues rather than as just one great message. Campaigns should start off with a message identifying the state of the customer. For example, an general insurer targeting flight insurance could start off with a message asking the customer if "he has flown in the past 5 days?". Based on his response, the next message could be sent. Its like a dialogue with the customer which slowly leads to establishing the pain, need and finally the solution.
I agree that this will increase the cost of communication... but it will offset by the increased offtake.
I will be happy to work out a pilot in my free time to establish this theory. Mail me at michaeldsilva@gmail.com if you think we can employ this strategy in your business.
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