Revenue Growth-High Final

Banking on revenue growth

Business Consulting Services

Banking on revenue growth 2

PricewaterhouseCoopers 3

The PricewaterhouseCoopers (PwC) 12th Annual Global CEO Survey has four key findings about the financial services sector:

1. Banks are considerably less confident about their industry’s prospects and have mixed perceptions of the business environment

2. Transformation of the business model is a key focus area

3. Perception of key risks has changed dramatically and is returning to simpler products for both retail and corporate segments

4. CEOs are balancing their decisions for the short and long term

Given these new realities, banks will have to find newer and more efficient means of revenue growth and customer development. In the quest for making themselves profitable without taking undue risks, banks will have to address a number of internal and external challenges.

Are you seeking answers to any of these questions?

If your answer is yes, then our Revenue Growth Proposition can help you address your concerns, to grow revenues and maintain profitability, whatever be the market conditions.

Internally

• How do we transform the business model to be the best in class player?

• How do we maximise the share-of-wallet of the existing customer base?

• How do we streamline sales/marketing functions for superior performance?

• How do we bring down the cost of acquisition of a customer?

Externally

• How do we grow a profitable business in a challenging business environment?

• How do we enhance share of the market?

• How do we increase the share of low cost deposits and products?

• How do we enhance fee-based income and other revenue streams?

1. More recently, astute financial institutions are balancing this cost focus with an increased attention on the top line; growing revenue organically has become a top priority for senior management

2. To drive this growth, banks are seeking to develop a richer and more granular understanding of their markets, customer needs, propositions and marketing investment in an effort to create the competitive differentiation required to be successful

3. Banks are sensitive to the fact that growth strategies must be pursued in an economically profitable and disciplined manner and not simply for their own sake

4. Banks are realizing that in order to be effective, growth strategies should address cross-functional issues across finance, marketing, distribution, tax, legal, regulation/compliance and operations

5. This cross-functional element involves significant complexity and requires effective coordination across the entire organisation when executing growth initiatives

PwC understands the urgency of this need, and we know how to make a difference to your business. We know your customers matter. We know how to help you support them better, with targeted marketing effort, effective sales intervention and contributions to growth strategy based on sound structural and analytical approaches.

The following pages explore some of our tried and tested approaches to taking the emotion out of declining sales to deliver a refreshed revenue stream that drives profit, customer satisfaction and long term relationships.

The fight for profitable sales has

never been harder. Depressed

consumer confidence, a relatively

weaker economy and sluggish

growth rates in the market have

combined with the credit crunch to

make maintaining sales, whilst

improving profitability, the major

challenge for any chief executive.

Revenue growth is of many types:

1. Profitable revenue: incremental growth, but with consideration for cost to grow

2. Defensive and offensive revenue tactics: protecting existing revenue and growing incremental revenue

3. Organic growth: rather than growth through acquisition

4. Cross-functional coordination: linking product, customer and channel activities to drive incremental growth

The issue of revenue growth is increasing in importance. Organisations are finding the challenges of delivering their growth ambitions to be complex and multi-dimensional.


Maximising the revenue potential will require the organisation to build and nurture capabilities across the entire revenue cycle, i.e., from strategy and proposition development, through implementation based on customer insights and efficient sales and distribution, to sustaining performance through effective customer service and operational management.

The Revenue Growth Framework

Making the most of any market opportunity requires an organisation to have capability across the whole revenue growth cycle.

Key activities carried out within the various stages of The Revenue Growth Cycle

Strategy

• Understand customer needs

• Validate market opportunities

• Understand competition• Assess alternative

business models

Developing the proposition

• Develop the concept• Build the business case• Understand intangible

resources• Align the organisation &

identify resource limits• Market test• Plan for implementation

Customer analytics

• Understand influences on demand

• Test & refine alternative product, pricing and distribution options

• Target effectively• Support decision

Sales & Distribution

• Channel optimisation• Relationship management• Effective sales management• Channel operations• Alliance management

Customer servicing & retention

• Effective customer service• Retention strategies• Continuous improvement

Measure, manage & control

• Governance & management• Financial & non-financial

indicators• Assessment of customer &

markets• Requirements for continued

growth• Efficient tax management &

control

Develop Implement Sustain


Aligning the business operations to the market strategy requires an established framework that will facilitate attaining the corporate vision.

Our diagnostic uses a tried and tested framework for identifying areas for improvement across the key elements of any company’s commercial operations covering:

• Quality of overall commercial environment and its links to business strategy

• Marketing performance including segmentation, customer relationship management (CRM), quality of customer insight, customer service and customer management

• Sales performance including sales process and systems, sales force management and channel effectiveness

Case studyPwC identified growth strategies for all business divisions of an African bank. We performed a comprehensive review of internal and external factors driving the bank’s ability to achieve its strategic objectives for growth. An overall strategic framework which included clear strategy for different banking segments (corporate or retail banking) and international expansion was drafted and actionable steps with priority, timeline and resource required were detailed for the bank. Areas for internal capability improvements such as the internal processes, strategic sourcing and cost management, organisation design, human resources and training, and management information system (MIS) were identified. Additionally, exposure to latest thinking and best practices in international banking via training modules were made available to the bank.

The result: The client was very satisfied with the results and they commissioned PwC for the next phase of work to help them to implement the strategy.

Aligning the business operations to the market strategy requires an established framework that will facilitate in attaining the corporate vision.

Market strategy to revenue operations

Business/Market Strategy

Commercial Context

Commercial Management

Competitor Understanding

Market Dynamics

Customer Insight

Sales Performance Marketing Performance

Sales & Channel Strategy

Sales Process

Sales Management

Systems & Controls

Marketing Strategy

Product, Pricing & Promotions

Marketing Operations

Customer Management

Quick Wins/Priority Fixes


Whilst the majority of businesses would claim to be focused on their customers, this is often, at best, an aspiration. Based on our experience in working with clients across a wide range of sectors we understand the challenges in developing customer focus and have helped numerous clients to overcome these challenges. Sitting at the heart of any such initiative is a robust customer analytics that creates truly actionable insights. From this insight comes a cycle of activities that starts with the development of individual customer value propositions designed to create value for both customers and the organisation.

Such propositions are founded on an understanding of the key drivers of customer experience preferably through customer relationship management system. These propositions, if improved, create real engagement and satisfaction for customers with the brand, product or service. Underpinning all of this is an understanding of customer profitability enabling the right investment in the right areas for the right customers, and the customer MIS to track the change. Across these challenges, PwC has a proven and tailored methodology.

Case studyA major banking group was seeking to raise client satisfaction through a relationship development programme. Internal surveys had shown disproportionate attention being paid to new customer propositions and a lack of focus on understanding customers business issues. PwC worked with the client to analyse the roles of three staff populations: the leadership; relationship directors/managers and support staff (a total of 2,500 staff). The result: an increase in customer satisfaction indices.

Placing the customer at the heart of a business strategy requires strong relationship management capabilities backed by extensive technology and in-depth insights.

A CRM (Customer Relationship Management System) needs to be backed by sound analytics and MIS


An agile, efficient and effective sales organisation is one of the key drivers for the growth of successful organisations.

Any one of these efforts is worthwhile and can have a positive effect on both the top line and on the cost of sales. However, truly making a step change in performance often requires a more holistic approach – one that starts from a detailed understanding of the right sales strategy based on an understanding of the demands of the market and the needs of customers.

Our approach creates such insight and uses this to design a high performing sales organisation that is underpinned by an efficient sales process and talent management framework. This approach ensures sales teams focus on driving profitable growth. Our team is also experienced in sales process effectiveness diagnostic , sales technologies, such as SAP, CRM, and in the design and implementation of sales MIS to support robust management decision making, and to ensure that any change can be successfully embedded in the organisation.

Case studyA major Australian Bank lacked a standardised sales management process across its 500 branches. We delivered a user friendly integrated sales and campaign management model to branch managers. The model was aligned to the retail division’s strategic priorities, provided structure with a degree of flexibility and captured global best in class processes and tools.

The result: an improved sales management process which enabled the bank to enhance its sales productivity and increase top line growth.

Sales Transformation ApproachBusiness/Market strategy

Transformation/Making Change Stick

Sales processapproach

Pipelinemanagement

Salesforecasting

Performancemeasurement

Key accountmanagement

Compliance

Sales strategy Sales Management Sales process Sales talent

managementTechnology solutions

Managerelationships

Understandingcustomer needs

Customer care

Account planning

Opportunity identification

Opportunityqualification

Solutiondevelopment

Closing winning

CRM solutions

Sales portals(online channels)

Sales Dashboards/MIS

Channel integrationsolutions

Strategic options

Market coverage

Channel mix deployment

Channel economics

Channel valueproposition

Organisation design

Competency definition

Talent acquisition

Talent development

Succession management

Talent strategy

Performance culture


Performance enhancement and transformation focused consultingPricewaterhouseCoopers (PwC) offers consulting services that are a coordinated effort to build, protect, and deliver value. We have a strong implementation focus, and work alongside clients with a hands-on approach to implement our recommendations, and measure the results. With our strong skills in change management, we create involvement and ownership across levels in the client organisation, resulting in sustainable, quantum benefits. Handing over recommendations is not the end point of a PwC engagement; it is actually the midpoint!

Our teamA typical PwC consultant holds a business degree from India’s premier business schools and/or has wide industry exposure in consulting. Our team is a combination of energy and experience geared up to deliver tangible, sustainable quantum benefits to clients.

Our clientsPwC India has worked on business consulting assignments with over 200 Indian and multinational corporations, including 80% of the top ten most valuable companies in India.

Our business consulting service offeringsFrom improving processes and eliminating risks to better managing costs and growing revenue through enhanced customer satisfaction models, we help clients anticipate, create and manage necessary changes to stay competitive and excel in their businesses. Our key consulting services include:

• Strategy formulation covering corporate/business/functional strategies

• Revenue growth strategies

• Value transformation

• Operations excellence and business process re-engineering

• Organisational restructuring

• Balanced score card

• Human resources and change management

Why PwC

We offer industry focused solutions to address specific issues in various industries such as Banking and Financial Services, Telecom Services, Entertainment & Media, Consumer Products


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PricewaterhouseCoopers Pvt. Ltd. (www.pwc.com/india) provides industry - focused tax and advisory services to build public trust and enhance value for its clients and their stakeholders. PwC professionals work collaboratively using connected thinking to develop fresh perspectives and practical advice.

Complementing our depth of industry expertise and breadth of skills is our sound knowledge of the local business environment in India. PricewaterhouseCoopers is committed to working with our clients to deliver the solutions that help them take on the challenges of the ever-changing business environment.

PwC has offices in Ahmedabad, Bangalore, Bhubaneshwar, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune.

About PricewaterhouseCoopers

ContactsHarsh Bisht Executive DirectorMobile : +91 9820199371Phone : +91 22 66691282Email : [email protected]

Arvind SubramanianPrincipal Consultant Mobile : +91 98219 38199Phone : +91 22 6669 1456Email : [email protected]


pwc.com/india

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Revenue Growth-High Final