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Case Study |
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Customer acquisition for a leading bank |
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Shubha N. Janardhan |
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Prof. S. Mohan Kumar |
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Overview: |
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One of the nation's leading banks hired Haselfrë to help with a specific customer acquisition problem that is important to senior management of the country. On this issue, management wanted to understand what the cost of acquiring a new customer is and what should be the right amount of investment in acquiring one to establish a foothold into the Indian market.
Working with our client, Haselfrë has been able to successfully engage various stakeholders within the bank and segment the various customers to attract as a pull strategy. |
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The Problem: |
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One of the country’s leading banks has been wanting to enter into the Indian market, but wanted to understand the cost of acquiring a customer first before making the investment. Even though management thinking was in the right direction, they were not able to decide, at what cost should the company invest in acquiring new customers and for what ROI. |
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Strategic Recommendation: |
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Haselfrë’s assignment was to engage the senior management (C Level) at the bank to understand what were the costs of acquiring the customer segment they had selected. Haselfrë enabled the bank to understand what the emerging markets demographics were and what the costs the gaining new customers would be.
Haselfrë’s team also enabled them to understand the projected return on their investment with the help of the sales team. Key elements of the program included: |
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Program Elements: |
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- Develop projected cost streams for acquainting new customers based on segment.
- Create simulations based on best case return on investment on a five year basis, ten year basis.
- Create simulations showing revenue streams based on customer segment and approach.
- Engage C level executives and discuss the pull strategy for understanding how to gain return on investment on new customers.
- Work with the bank to engage in pilot projects for creating appropriate gains on new customer.
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Results: |
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Haselfrë’s efforts to help the bank understand the financial implications of new customers and acquiring them appropriately have been very effective. Working with our client as well the potential new customers of the bank has helped the bank create a new awareness of approaches for the bank.
Haselfrë enabled the bank to understand how to work with the sales team along with the marketing efforts to decrease the time taken to realize the ROI on new customers.. |
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About the Key Professionals:
Shubha N. Janardhan is the Chief Operating Officer of Haselfrë Solutions.
Prof. S. Mohan Kumar is a principal at the Haselfrë Office.
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