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In order to build sustainable competitive advantage a robust strategy was defined, with detailed investment and returns, and a clear delivery plan. The strategy was based on rigorous, fact-based analysis, see the summary of activities. The analyses could be simplified, but in the uncertain environment we went the extra step to generate support.
Much of the strategy remains competitively sensitive, but the core principles of the strategy were (click the [+] for more details):
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Market leading pricing |
- 6.0% saving account (nearest competitor 5.5% at launch)
- 0% credit card, no annual fee (nearest competitor $85 annual fee at launch)
- 6.66% home loan, refundable $100 application fee on third anniversary
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Simple products and processes |
- 1 step to account opening – benchmarked as simplest in market
- 3 click websites, 3 button push IVRs
- Most succinct literature
- Simplest product structures (e.g. no savings balance tiers)
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Convenient low cost distribution |
- 24 x 7 Telephone and internet – all operations, not just certain functions, (multi-skill night shift)
- Mortgage broker distributed home loans
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Compelling communications |
- Invest in building the brand awareness, all investment directly linked to returns
- Establish clear performance targets, evaluation and improvement methodology for each channel and media
- Create an engaging, confronting communications campaign to engage a disengaged market
- Generate a holistic internal, external, paid and unpaid media communications campaign
- Target the key media, target consumers use, including use of PR, events, new and traditional media
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Lowest cost operations |
- Simple products reduce cycle times and rework
- Build scale operations
- Operate direct channels only
- Leverage UK platforms where appropriate
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Good basic service, with outstanding cross sales, issue recovery and retention to retain value |
- Invest in upgrading legacy platforms
- Simplify all processes and operating models
- Establish dedicated, highly skilled issue resolution and retention teams and simple rules for colleague hand offs
- Develop deep understanding of customer behaviours, value drivers and propensities to protect and develop value in customer base, translate into simple rules for colleagues
- Align incentive and performance management schemes to value drivers
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Leverage colleagues as a point of difference |
- Establish a values based culture, with a small and clear set of colleague owned values
- Colleagues encouraged to be personable and individual in customer interactions
- Leading talent management and performance based reward and recognition to promote desired behaviours
- Invest in building the team, key capabilities, the new culture and support for the program
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Minimise implementation risk |
- Dedicated program and resources to build the new operation
- Implement disciplined program management with clear decision points, decision makers and go/no go criteria
- Launch early initiatives to build momentum and advocacy
- Pilot all launches using team members, colleagues and limited test markets
- Launch simplest products (savings) first to increase speed to market, reduce risk and generate momentum
- Engage third party providers on flexible arrangements to fill capability gaps and reduce capital and recruitment requirements (included 17 agencies covering; call centre, IT development, program management, project resource, systems testers, marketing communications, internet design, PR, internal communications, market research, media strategy, on-line marketing and many more)
- State by state launches, to reduce operational shock at launch and allow review and refinement
- Implement simple and robust management information reporting to monitor progress in real time
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