About client
One of the top two banks in the region by customer base, offering a comprehensive range of payment, credit, savings, investment, and wealth management products for both consumers and businesses, supported by a well-developed retail network.
Challenge
Despite the bank’s leading market position, the penetration of premium products was below expectations. Many clients considered the target audience for premium products did not convert or actively use these services. Craft Innovations was tasked with identifying the reasons behind this customer behaviour and improving the service model to change the situation and help meet business targets.
Project goal
Identify the barriers and drivers influencing the use of Premium Banking services among the target audience. Review and refine the Customer Value Proposition, and enhance the service offering process.
Process explained
- The essence of premium banking lies in the experience and perception of the extra value provided to the consumer through exceptional customer service, distinctive product features, visual identity, and the feeling of belonging to an exclusive group. We assumed that the current issues with the product stem either from the value proposition itself or from the processes through which this value proposition is delivered to the target audience. Our goal is to identify the root causes of the problem.
We began by diving into product analytics, conducting micro-segmentation of customers based on product usage statistics, with particular focus on the churn cohort. This initial analysis allowed us to create a list of hypotheses that we would validate during the research phase of the project.
- To collect insights about customers’ actual perceptions of premium banking and their uncovered needs, we conducted a series of in-depth interviews with representatives from all initially identified micro-segments. Our team was responsible for recruiting respondents, creating research guides, conducting the interviews, and subsequently analyzing and synthesizing the insights. During these conversations, we utilized the KANO model to identify expectations from premium services.
- Based on the research findings and usage statistics, we suggested a series of changes to the existing value proposition and service model. This included adding new features to the premium packages, reviewing the pricing strategy, and designing new scripts and communication strategies for the premium customer acquisition team.
- As a result, the conversion rate increased, and the overall performance of the premium products improved.
