14/02/ Presentation on Marketing of Money Transfer in India Post

Introduction DOP offers number of Products & Services to its customer In order to remain competitive, DOP should to be aware of its – Market Share – Customer needs & Expectations – Customer Satisfaction Level For this purpose, DOP through IMRB International conducted a customer satisfaction survey among the customer of Seven product/service categories One such category is Money Transfer – Domestic – International 14/02/

14/02/ Money Transfer Domestic International -Inward International - Outward With Bank Account Without Bank Account NEFT RTGS CARDS Cheques/Drafts ATMs Mobile Platform FormalINFORMAL India Post- Traditional Banks(DD<20000) India Post electronic, instant India Post-MMTS With Bank Account Without Bank Account SWIFT/Wire Transfer Cheque/DD Cards Direct Transfer Mobile Platform Money Transfer Agents Banks –various platforms India Post –MO Videsh Various Modes of Money Transfer

Domestic Transfer (Without Bank Account) – Official (India Post, Banks) – Unofficial (agents, friends & relatives) Domestic Transfer (with Bank Account) – Transfers using NEFT, RTGS, Cards, Cheque/Draft, ATM, mCheck etc. International Transfer (Without Bank Account) – Inbound (through Money Transfer Agents like WUMT, MoneyGram) – Outbound (India Post’s MO Videsh) International Transfer (With Bank Account) – SWIFT/Wire Transfer, Cheque/Draft, Cards & Direct Transfer 14/02/ Various Modes of Money Transfer

Money Transfer Channels 14/02/

Money Transfer Channels 1.Banking Channels  NEFT, RTGS, Credit /Debit Cards, IMPS, Cheques/Drafts/ATM 2.Non Banking Channels  MO, IPO, IMO,IMTS, MO Videsh, IFS MO 3.Informal Channels  A Broker or middleman would transfer cash to another location through his network for a fee 14/02/

Competition Scenario 14/02/

Market Share (Domestic) Without Bank A/c – To obtain and encash DD of Value below Rs.20000, a bank a/c is not required. This service from bank competes with India Post offerings. – It is not possible to calculate the share in this segment because, banks/RBI do not have separate data on DD encashment of less than Rs – Informal transfer are not documented 14/02/

Market Share (Domestic) With Bank Account – NEFT, Cheques/drafts, Cards, ATMs and Mobile banking would form competition to India Post – RTGS is used only for high value service – Cheque is the largest means of money transfer in India constituting more than 90% of the market – India Post’s Money order services forms around 0.1% 14/02/

Market Share(Domestic) 14/02/

Market Share (International) India receives the most inward remittance in the world World bank estimates USD 63.5 billion (Rs crores) inward remittances in India A small part of this remittances made through agencies like Western Union and they come into play only when recipient does not have a bank a/c Majority of remittances are done through banking channels as they are faster and cheaper 14/02/

Remittance by India Post through WU are approximately 2.5% Total remittance done by WU into India is crores of which India Post’s share is 44.3% 14/02/ Market Share (International)

Customer Scenario Types of services availed at Pos 14/02/

Occupation profile of Money Transfer Users 14/02/ Customer Scenario

The 4 Ps of Marketing are Product Place Pricing Promotion 14/02/

Product In Domestic Money transfer the key would be – Switch to electronic mode – Increase the speed of delivery 14/02/

Expansion of instant domestic money order transfer to all Post Offices It would reduce the problem of long queues Timing of select high volume branches can be increased from 9 AM to 9 PM especially for international remittance The division to take necessary steps 14/02/ Place

Awareness and perception are not major problem areas Most users and non-users are aware of Money Transfer service by India Post Communication regarding Electronic/Instant Money Transfer can be done 14/02/ Promotion

Even though there is not much flexibility for pricing we still can attempt to reduce the impact of non competitive pricing through – Appointment of franchisees – Use of vast network of postmen to collect money from the sender 14/02/ Price

MONEY REMITTANCE SERVICES Discussion on Self Study Material 14/02/201420

ACTIVITY Make 5 groups of 6 trainees and allot following 5 Money remittance services for analysis – Group1 eMO – Group2 iMO – Group3 MMT – Group4 MOVidesh – Group5 IFS MO Ask Trainees to list-out what are all the strengths & weakness of the service (SWOT analysis) Get the suggestions/innovative ideas from the trainees for improvisation of the service 14/02/

Reasons for not using India Post’s MT 14/02/

MEASUREMENT PHILOSOPHY 14/02/201423

Business Success & Customer Loyalty Business Success Loyalty Perceptions & Attitudes Transactions & Experiences 14/02/

Business Success & Customer Loyalty Business Success is a function of Loyal Customers Customers in turn base their loyalty behavior on the basis of their perceptions regarding the Department Perceptions may be related to Value, Cost, Quality of products & services & image perceptions These perceptions are due to a combination of experiential and non-experiential factors 14/02/

STRATEGIC PRIORITY & EXPECTATION OF CUSTOMERS 14/02/201426

Critical Improvement Areas Procedure/Documentation – Time taken at the Post Office, to complete the documentation – Ease of filling up the form – Options available in terms of amount of money that can be sent/received 14/02/

Post Office – Cleanliness of the Post Office – Queue management at the Post Office – Adequate staff at the Post Office – Convenience of Timings – Availability of forms/slips/envelopes/brochures etc – Ease of finding a branch – Availability of basic facilities like drinking water 14/02/ Critical Improvement Areas

Postal Employees – Helpfulness of the postal employees in giving information or solving the customer queries – Knowledge of Employees about Money Transfer Process, locations – Politeness of the Postal Employee – Speed in responding to customer queries 14/02/ Critical Improvement Areas

Customer Comments/Suggestions “Money should reach fast, Service charge should be lower” “Postal Staff should be helpful, Transactions should be fast” “Acknowledgement receipt of delivery” “Postal employees should tell about Tracking Facility” “There should be better queue management” 14/02/

CONCLUSION & RECOMMENDATIONS 14/02/201431

Key strengths Positive perception of being ‘Safe and Secure’ Key differentiating facilities like ‘Delivery to home address’ in eMO Price/Commission No bank account required on part of receiver 14/02/

Key Focus Areas Training for Postal Staff Timeliness of the remittance Create awareness of Instant Money Order Create awareness of the amounts that can be transferred Acknowledgement incase of iMO Convenience of timings 14/02/

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