Outrunning the Competition CRM/MCIF Moderator: Michael Bartoo, MARQUIS Panelists: Chris Braccia, D&H Joann Marsili, Fidelity Deposit & Discount Bank John Zells, IBM Southeast Employees Credit Union

What is CRM? Customer-Relationship-Management/CRM is a strategy focusing on sales and service management in order to anticipate and meet customer needs while increasing the overall profitability of those relationships for the Financial institution. This and the following slide are self explanitory. The keys are highlighted in BLUE. From a presentation perspective it sets up our vision of CRM as one that goes beyond simply a software play. It is a comprehensive defination of what CRM is and what must be considered in order to be successful. It also helps to differentiate HFS as a thought leader in this space.

What is CRM? Customer-Relationship-Management/CRM continued: To achieve this the organization must understand customer needs, develop a CRM culture that is executed across the entire organization and establish a platform for consistently delivering The proper message to the customer at all touch points. See slide 3 Notes

Defining CRM Confidential; © 2014 D+H Vision Where do you want to go? What does it look like? Strategy Define your Institutions CRM Strategy Who, What, Where, When, How Plan Define the necessary steps to execute Establish goals & objectives Culture A consistent experience across the enterprise How will you exceed client expectations Evolve Measured approach Long term strategy Confidential; © 2014 D+H

Household Value Segment Summary

Moving Forward - CRM 3 Steps to Conducting Interactions Strategy Technology/Systems Organization/Culture Not bits and pieces Not optional Not happenstance “By design, not by default” Walt Disney

Putting the Puzzle Together - CRM Develop & document strategy Translate goals & objectives into customer-centric action items Develop benchmarks Sales Referrals Retention Service standards Profit contribution NPS Measure – Refine – Repeat Slow roll-out Manage scope Build one success at a time

For Your Consideration Review hiring process Retail Sales Hospitality Services Partnering for change Learning about retail beyond the Financial Services Industry Industry Recon Going undercover

MCIF vs. CRM Using the Tools to Create Opportunities MCIF = Marketing CRM = Sales Opportunities and Relationship Building

Differentiate/Communicate Your Brand

CRM  THE TECHNOLOGY “Mobile devices put a bank branch in everyone’s pocket.” James P. Gorman, Chairman Morgan Stanley Predictive Behavior Modeling Right message, time, person, channel Readership habits Business Process/Channel Integration Micro-segmentation Value Creation Custom window- “Wow Moment” Personalized, product, price, service Real Time Capture Analysis distribution of information across all channels

CRM  THE CULTURE CRM requires a fundamental redesign of the business model. Staffing profiles (ex. Zions Bank) Aptitude testing- sales, I.Q. Job descriptions- sales Sales training- member experience, welcome calls, value creation (ex. AT & T) Accountability- performance based compensation Behavior reinforcement (+ -)/Meaningful

What Motivates The Consumer Purchase Decision? 15% - Creativity of the offer 25% - Content of the offer 60% - Right message, time, person, channel Broadcast <1% Personalized eblast >2% Channel integration >3% Follow up call >7% *Customer intelligence is the key to value creation. - Conference Board