Effectively Communicating with Customers – Asian Banker Research Effectively Communicating with Customers – Banks aggressively move towards electronic communication, but need to balance their channel strategy March 2010 1 1

Agenda Efficient means of customer communication Banks move away from paper-based communication Frequency of customer communication Regulatory changes affecting customer communication

The major benefit of SMS communication is the personal touch and the opportunity to reach the customer anywhere anytime What are the most effective means of costumer communication*

Banks increasingly switch to paperless communication with customers, as it saves cost and supports social responsibility Split between paper-based and e-communication

Bill inserts are seen as more efficient than modifying the bill for marketing itself, as banks want to keep bills clear How efficient are the given document types in your customer communication?

Statements are frequently used for marketing, as they can be easily complemented with product and general information, without causing additional cost What document types does your organisation use to communicate with customers and how frequently are they used?

Catalogues are seen as with the most effective means of communication and thus used by the almost all banks in mature markets Frequency of various forms of paper-based customer communication in mature markets

Credit card marketing is more frequently used in the emerging markets than in mature markets Frequency of Various Forms of Paper-based Customer Communication in Emerging Markets*

Unsolicited offers are less frequently used in mature markets, in Australia banks are restricted from their usage Frequency of Paper-based Communication in Selected Countries

“The banks we like” Commonwealth Bank has been embarking on a branch transformation project since 2007 with a community banking concept and a new approach towards interacting with customers. OCBC deploys a powerful events based marketing platform and is now deploying the event based marketing and CRM based platform regionally. All customer interactions – whether monetary or non-monetary are captured every day and an optimised algorithm identifies the most appropriate mix of leads to be supplied to each channel every day. Furthermore an interactive mobile phone proposition brings customers closer to the bank.

The Questions We Ask How do banks measure the effectiveness of customer communication? What is the most effective communication channel and how does this show? How often is communication initiated with existing clients (retail customers, SME, investors)? How do banks balance marketing needs and communication with customer harassment and overselling? In how far do banks understand customer needs and what is done to improve this?

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