Leveraging Brand Image and Word-of-Mouth

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1 Leveraging Brand Image and Word-of-Mouth

2 Readers Notice Leveraging Brand Image and Word-of-Mouth is best presented by an experienced marketer. You are welcome to use all or parts of this presentation in your internal business presentations provided Cimigo is shown as the source. Please respect the Cimigo Use and Limitations of Use of Content as detailed at Should you wish to share this presentation outside of your organisation please do not forward it; simply direct the intended recipient to to register and download this presentation free of charge Copyright 2010 Cimigo Download this presentation for free: 2

3 Copyright Notice - Use and Limitations of Use of Content Permission to use content When you download any of our content in digital form or print on paper format, what you are accessing is the right to use it (or extracts from the same) for your own reference in connection with your business in the following ways only: to download a copy of that digital content in an available electronic format, to store that content in electronic format on the drive of one hardware device, to print out a copy of that digital content, to share that report internally within the legal entity that purchased it, provided that you keep intact all and any copyright and proprietary notices Restrictions for use of content Any rights not expressly granted in these Terms are reserved. This means that you may not use the content in any way not permitted above, in particular: You may not offer the content for resale. You may not scan, photocopy, fax, or in any other way reproduce or copy the content. You may not share the content with anybody else unless they are an employee of the legal entity that purchased or downloaded the report. You may not distribute the content whether by electronic mail, over any network or otherwise. You may not upload the content to any database or server. You may not display the content on any website or intranet. When you download any of our content in digital form or print on paper format you are permitted to use it in accordance with the copyright notice included with such content and in accordance with copyright laws. Copyright 2010 Cimigo Download this presentation for free: 3

4 Cimigo advise 4 of the top 5 advertisers in Vietnam on their brand and communication strategies.

5 Research Channels Telephone interviewing Street intercepts In-depth interviewing Focus groups Videographies Mystery shopping Online survey Online usability labs Copyright 2010 Cimigo Download this presentation for free: 5

6 Richard Burrage Richard Burrage has seventeen years of experience in market research and strategic consulting. Richard has worked across Asia Pacific consulting across a range of industries and business issues. Richard has spent the last ten years in Vietnam assisting in the development and building of numerous brands to achieve leadership positions. Richard is a UK national and resides in HCMC with his Vietnamese wife and their children. Richard is the Managing Director of Cimigo: Copyright 2010 Cimigo Download this presentation for free: 6

7 Cimigo Consumer Financial Services Monitor Cimigo has surveyed over 5,000 consumers on over 100 questions relating to personal banking and financial behaviour, attitudes and perceptions.

8 Our Basic Approach Understand consumers, Understand your bank s brand position, Leverage both to craft a campaign that generates revenue while getting people talking about your bank.

10 Brand Associations

11 What is it about your bank that makes consumers consider using it? Do these traits differentiate your bank from your competitors?

12 Cimigo Measures Brand Associations We asked consumers to associate 14 leading banks ACB Agribank ANZ BIDV Dong A Eximbank HSBC Military Bank Sacombank Techcombank VIBank Vietcombank Vietinbank VPBank with 18 brand attributes Market leader Innovative Modern Financially stable Prestigious Trustworthy Long-established Dynamic Fast-growing Customer-focused Safe choice Understands customers Conveniently located Satisfied customers Good for new bank users Makes banking easy Popular Has strong overall reputation Copyright 2010 Cimigo Download this presentation for free: 12

13 Cimigo Measures Brand Associations These consumer ratings are used to compute normalised scores. These scores show the relative strengths and weaknesses of each brand. Some examples: How do the following banks: compare with each other in performance on these brand attributes: Copyright 2010 Cimigo Download this presentation for free: 13

14 Market Leader Consumer perceptions of market leadership HCMC & Hanoi Weak Neutral Strong Big bank = market leader? Not necessarily. HSBC way ahead of some larger institutions. Copyright 2010 Cimigo Download this presentation for free: 14

15 Innovative Consumer perceptions of innovativeness HCMC & Hanoi Weak Neutral Strong State-owned banks score weak on innovativeness, while joint stocks lead. Copyright 2010 Cimigo Download this presentation for free: 15

16 Dynamic Consumer perceptions of dynamism HCMC & Hanoi Weak Neutral Strong Techcombank, HSBC seen as fast-paced, active, while opposite is true for state-owned banks. Copyright 2010 Cimigo Download this presentation for free: 16

17 Brands are essential for differentiating banks in such a crowded market. Consumers are already making distinctions, with some brands outperforming others. Insight into your bank s brand position empowers your bank to identify the best way to stand out above the rest.

18 Is Word-of-Mouth Important for Banks?

19 One way to answer this is to look at the sources of information consumers used to learn about their bank

Top 5 Ways of Learning About Bank 50% 18% 3% Employer / workplace Saw ad or promotion Call from

24 Top 5 Ways of Learning About Bank 40% 60% 50% 18% 3% Recommendations from friends Family members Employer / workplace Saw ad or promotion Call from bank sales Number 2 Copyright 2010 Cimigo Download this presentation for free: 24

Saw ad or promotion Call from bank sales Number 1 Copyright

25 Top 5 Ways of Learning About Bank 70% 60% 50% 18% 3% Friends & acquaintances Family members Employer / workplace Saw ad or promotion Call from bank sales Number 1 Copyright 2010 Cimigo Download this presentation for free: 25

26 But does word-of-mouth have any impact on bank choice?

27 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friend / family Good savings rates Good ATM / card services Convenient locations Number 5 Copyright 2010 Cimigo Download this presentation for free: 27

Good savings rates Good ATM / card services

28 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friend / family Good savings rates Good ATM / card services Convenient locations Number 5 Copyright 2010 Cimigo Download this presentation for free: 28

29 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friend / family Good savings rates ATM / card services Convenient locations Number 4 Copyright 2010 Cimigo Download this presentation for free: 29

30 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friend / family Good savings rates ATM / card services Convenient locations Number 3 Copyright 2010 Cimigo Download this presentation for free: 30

31 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friends / family Good savings rates ATM / card services Convenient locations Number 2 Copyright 2010 Cimigo Download this presentation for free: 31

32 Top 5 Main Reasons For Using Bank 35% 14% 11% 10% 9% Employers pays salary through it (i.e. have to use it) Recommended by friends / family Good savings rates ATM / card services Convenient locations Number 1 Copyright 2010 Cimigo Download this presentation for free: 32

33 In other words Recommendations are the most frequently cited among respondents who indicated making a decision about their bank

34 WOM is a vital source of information, especially among the younger (18-34) generation of bank users What do you want your customers to say about your institution?

35 Ads and promotions tend to be noticed more among the younger (18-34), most brand savvy age group What do you want your ads to say about your institution?

36 A Case Study From Abroad

ING Direct 100% online savings bank, no branches Goal: Raise number of account openings for online savings Target: Young urban internet-savvy professionals Customer insight: Savings not a cool

37 ING Direct 100% online savings bank, no branches Goal: Raise number of account openings for online savings Target: Young urban internet-savvy professionals Customer insight: Savings not a cool activity Brand insight: Strong image, differentiation and uniqueness Marketing: Move ING brand further toward cool association Copyright 2010 Cimigo Download this presentation for free: 37

38 ING Direct How did ING decide to accomplish its marketing task? By fusing savings with a much cooler activity: hanging out at cafes! Sleek exterior Copyright 2010 Cimigo Download this presentation for free: 38

39 ING Direct How did ING decide to accomplish its marketing task? By fusing savings with a much cooler activity: hanging out at cafes! Branded interior Copyright 2010 Cimigo Download this presentation for free: 39

40 Fusing Cafes With Savings The cafes are not simply a place to sip ING-branded coffee LCD screens at tables allow customers to learn about ING products, open new accounts or check current balance. Copyright 2010 Cimigo Download this presentation for free: 40

Fusing Cafes With Savings The cafes are not simply a place to sip ING-branded coffee Cafes become venues for holding seminars on savings and personal finances,

41 Fusing Cafes With Savings The cafes are not simply a place to sip ING-branded coffee Cafes become venues for holding seminars on savings and personal finances, and opportunities for the online bank to have direct face-to-face contact with customers. Copyright 2010 Cimigo Download this presentation for free: 41

42 ING Direct is a case of bold branding that achieves results by using customer and brand insight Greater penetration into target market Higher revenue, as much as US$200m from a single café Generating a great deal of positive word-ofmouth and consumer interest by providing a unique banking experience

43 A Case Study From Vietnam

Review: ATMs Are A Prime Touch-point Touch points visited/contacted once a month or more HCMC &

46 Review: Techcombank Seen As Innovative & Dynamic Consumer perceptions of Techcombank HCMC & Hanoi Weak Neutral Strong Techcombank, HSBC seen as fast-paced, active, while opposite is true for state-owned banks. Copyright 2010 Cimigo Download this presentation for free: 46

49 The Scenario Current Techcombank users discover vouchers Customers mention campaign to peers Peers also use Techcombank ATMs and spread the word to others Both customers and non-customers end up with a more favourable impression of the bank Techcombank ends up with greater ATM transaction volume

50 Some Evidence Techcombank Customers' Likelihood to Recommend to Others 60% 50% 40% Steady rise since campaign launch +11 pts in 3 months 30% 20% 10% 0% Jul-09 Aug-09 Sep-09 Campaign start Campaign end Copyright 2010 Cimigo Download this presentation for free: 50

51 Some More Evidence 70% Consideraton of Techcombank Since Launch of ATM Voucher Program - Hanoi 60% 50% 40% Sharp rise Followed by stable interest in using TCB +19 pts in 3 months 30% 20% 10% 0% Jul-09 Aug-09 Sep-09 Campaign start Campaign end Copyright 2010 Cimigo Download this presentation for free: 51

52 The Techcombank ATM voucher program is much more modest than the ING Direct cafes. But the success of both campaigns is based on the same principles

53 Understand consumers, Understand your bank s brand position, Leverage both to craft a campaign that generates revenue while getting people talking about your bank.

54 Richard Burrage Cimigo 9 Nguyen Huu Canh Street, Binh Thanh District, HCMC, Vietnam T: (84) Ext 345 E: richardburrage@cimigo.com, W:

CHAPTER 3: SERVICE MARKETING MIX- THE 7 P S. of the market or the customers facilitating them to design a good market plan.

CHAPTER 3: SERVICE MARKETING MIX- THE 7 P S Summary: Marketing a service needs for example requires absolute understanding about the customer, what drives or would attract the customer to purchase the