Sales and Marketing Strategies That Work for Financial Services · 2009-04-17 · That Work for Financial Services March 2008 Julio Gomez Research Vice President ' 2008 Financial

www.financial-insights.com

Sales and Marketing StrategiesThat Work for Financial Services

March 2008

Julio GomezResearch Vice President

© 2008 Financial Insights, an IDC company. All rights reserved. 2

Agenda

! Introduction to Financial Insights

!Elements of a Winning Financial Services Sales and Marketing Strategy

!What Financial Institutions Are Saying About 2008 Spending Priorities and Technologies of Interest

!Key Themes for 2008 by Industry Segment


Our Mission

! Provider of independent market research, custom research, and strategic consulting

! Focus on the strategic business application of financial services technologies

! Provide unique insights on how to improve business through the use of technology

! Breadth & depth� Global reach of IDC and our industry knowledge


Research Practice Areas

Global Analysis

Regional Analysis

Other Services

Latin AmericanInvestment Report

SeriesAsia/Pacific ITBenchmarking

Canadian Financial Services

European Banking Services European Capital Markets

European Risk Management

PaymentsConsumer Banking &

Credit

Banking Services Capital Markets

Corporate Banking

Risk Management

Insurance

Institutional Trading, Retail Brokerage, Investment Mgt

Individual Life & Annuity, Personal

Property & Casualty

European Insurance

Asia/Pacific InsuranceAsia/Pacific Banking Services Asia/Pacific Capital Markets Asia/Pacific Insurance

Asia/Pacific Risk Management

Industry Insights IT

Management Service

Financial Markets

Investor Service

Regional & Segmented IT

Spending Guides


Elements of a Winning Sales and Marketing Strategy

1. Map� Define Financial Services

for your purposes� �My Financial Services�


2. Context� Understand the macro issues critical

to the business of your target financial services customers



Perceived Vendor Sales Deficiencies

0% 20% 40% 60% 80%

Their sales team does not understand mybusiness and/or business goals

Their sales team changes too frequently

Their sales team says they understandmy business and/or business goals but

they really don�t

Their sales team do not bring me intoproduct development discussions

Their sales team are not able to meetservice level agreements

Their sales team does not customizetheir communications to my industry

SecuritiesInsuranceBankingAll industries

In which of the following areas are you dissatisfied with your experience with IT vendors and their service to your organization?

Source: IDC�s Annual Vertical Survey, Feb. 2008; n = 516 IT technology buyers in FS% of Respondents


3. Connect� Find and focus on highest value segments� Link solutions to industry-specific

pain-points� Financial institutions don�t buy technology

� Enrich the vendor-client dialogue� Clients need to see deep understanding



Customer�Technology Linkage

Customer Demand

Business Opp.

Business Strategy

System Requirement

Tech Solution


What Do Institutions Want from Vendors?

� �Figure out how to map to the culture of your client�� More transparency into vendor vision and strategy�� You need to be so demanding that you have a handler

assigned to your account�� Best vendors are those that make it easy to solve

big problems�� Bring in people who have done this kind of project before�� Keep communicating after the sale is made and provide

access to decision-making process and early stage product design�

� �Best relationship is with a firm that is almost an arm of my IT shop�


4. Support� Collateral and references as evidence� Reinforce your story in multiple media formats



5. Execute� Enable your sales force� Show thought leadership� Add value at industry events Clients need to see your firm and your representatives as

active participants in the industry community



Make Sure Sales Understands Stakeholders

Finance: Increase shareholder value

Business heads: Compete successfully by providing first class products and service

Operations: Provide efficient, cost-effective

processing, regardless of geography

Technologists: Align with my business

partners by being more responsive


The Price for No Industry Experience

0% 5% 10% 15% 20% 25% 30% 35%

I send a part of my business somewhereelse

The vendor never initially wins mybusiness or I stop doing

It lengthens the sales cycle

It lengthens the deployment time due toinadequate scoping

The vendor incurs unexpecteddevelopment costs before or aft

The vendor loses the ability to use my siteas a reference

There is minimal negative impact

SecuritiesInsuranceBankingTotal

What is the impact of an application vendor�s sales personnel not understanding your industry-specific business issues

% of RespondentsSource: IDC�s Annual Vertical Survey, Feb. 2008; n = 516 IT technology buyers in FS


�Please Indicate Which Areas Will Experience Strong Growth in Spending in 2008�

Areas of Strong Investment GrowthAreas of Strong Investment GrowthAreas of Strong Investment GrowthAreas of Strong Investment Growth

0%5%

10%15%20%25%30%35%

Server virtualization

Virtualization technology

Hardware reduction

Storage virtualization

Mobile bankingData center consolidation

Security of mobile devices

Corp banking sys replacement

Security and fraud mgm.t tools

BPO

Perc

ent o

f Ban

ks

Source: Financial Insights� survey of 60 FS C-level IT executives, February 2008


�Please Indicate Which Areas Will Experience Moderate in Spending in 2008�

Areas of Moderate Spending Growth

0%10%20%30%40%50%60%

Security and fraud mgmt. tools

Business continuity

Customer data quality

Compliance

IP telephony/call routing



Operational risk

BPAPredictive analytics

Unified messaging

Web audio and video conf.

Perc

ent o

f Ban

ks



�Please Indicate Which Areas Will Experience No Growth in Spending in 2008�

0%10%20%30%40%50%60%

Instant messaging

Event processing technology

Market data consolidation

Retail internet banking replac.

Market risk

Syndication and securitization

Data definitions and meta-data

Legacy core transformation

CRMPayments hub

Converged transaction process.

IT outsourcing

Perc

ent o

f Ban

ks


No Projected Change in Spending


�For Which of the Following Initiatives Do Vendors Have High Capability for Providing Appropriate and Attractive Solutions?�

Vendor Capability Perceived as Strong


0%5%

10%15%20%25%30%35%40%


IP telephony/call routing

Web audio and video conf.

Unified messaging

Instant messaging


Storage virtualization

Hardware reduction

Core replacement

Retail Internet banking replac.

IT outsourcing

Perc

ent o

f Ban

ks

Next Generation Communications

Virtualization/Consolidation


For Which of the Following Initiatives Do Vendors Have Low Capability for Providing Appropriate and Attractive Solutions?�

Vendor Capability Perceived as Weak

0%2%4%6%8%

10%12%14%16%18%


Operational riskData center consolidation

ComplianceCaptive offshore staff

Event processing technology

Legacy core transformation

Core replacement

Corporate Internet banking ...

Perc

ent o

f Ban

ks



�Which Topics Are You Most Interested in Learning More About�

Topics of Greatest Interest to Bank IT Execs

0%5%

10%15%20%25%30%35%40%45%

Security and fraud mgmt. tools

Mobile banking



Mobile payments

Unified messaging



Compliance

Enterprise SOA

Perc

ent o

f Exe

cs



Summary of Findings

! Virtualization/Consolidation and Mobility will experience strongest spending growth.

� 50 categories offered for selection � 5 of the top 6 that executives marked for "strong growth" in spending for 2008 dealt with

virtualization, hardware reduction, or data center consolidation. The other was mobile banking.

! Security and Fraud Management Tools command the greatest interest.� Topics of interest for the conference is a good leading indicator of future growth in spending. � The top 2 topics of interest were "Security and Fraud Management Tools" and Security of

Mobile Devices." Third was "Mobile Banking," indicating that spending growth in mobility will have "legs.�

! Vendors solutions are deemed weak for "Increasing consistency and accuracy of customer data"

� We also asked for the executives' assessment of vendor capabilities in each of the 50+ areas. The category above drew the most "weak vendor capability" votes.

! Vendors solutions are deemed strong for NextGen Communications and Virtualization/consolidation


Top Business Initiatives Driving IT Investment at Banks

0% 5% 10% 15% 20% 25% 30% 35%

Increasing sales

Compliance

Updating infrastructure

Retaining existing customers

Reducing non-IT operating costs

Improving marketing

Reducing IT capital costs

Introducing products services faster

Improving pricing

Improving profit margin

Reducing IT operating cost

Expanding into new geographies

M&A related integration

Source: Financial Insights� 2007 Financial Services Industry Survey


2008 Banking Top Ten Strategic Initiatives

1. Information Management: Moving to Information Life-Cycle Management

2. Technology Refresh: Continuing the Quest for Dynamic IT

3. Data Security: The Battle Continues

4. Business Process Management: Focus on Efficiency

5. Credit Risk Management: Back to Basics

6. Predictive Analytics: Building on a Strong Foundation

7. Mobility: The Next Big Thing

8. Core Banking Renewal: Gaining Momentum

9. Green: Conservation as Competitive Advantage

10.Channels: Getting to Customer Centricity


2008 Insurance Top Ten Strategic Initiatives

1. Regulatory Compliance: Local regulations; global impact

2. Growth: Acquisitive and organic both in play

3. Core Administrative Systems: Rationalization finally underway?

4. Easy to Do Business with: EDB cascades throughout the entire value chain

5. Cost Improvement: Taking center stage

6. Risk Management: Responding to a changing landscape

7. Channel Management: The quest for balance

8. Competitive Posture: Competing as an enterprise

9. Business Models: The new strategic focus

10. Technology Refresh: The Web and business applications evolve


2008 Capital Markets Top Ten Strategic Initiatives

1. Information Management2. Business Intelligence3. Service-Oriented Architecture 4. Trade-Cycle Automation and Participant Connectivity5. Business Process Management & Outsourcing6. Risk Management7. Retail Advisor/wealth Management Front-Office Solutions8. Multi-Asset Class Trading Systems9. IT Governance10. Next-Generation Communications


Addressing the Business�IT Connection

Customer Experience

Business Objectives

Customer Acquisition

Customer Enrichment

Customer Retention

IT Tools and Capabilities

Responsibility!Fair price!Scandal-free!Well-supervised

Reliability!Availability!Speed!Security

Relevance!Right products!Right information!Right channels

IT Architecture

Improved Business Performance


Research with End-User Influence

! �Strategic Marketplace� focus� Addresses �hotly contested� markets where FIs compete for

customers� Topics go across industries and across retail/wholesale markets� May include a benchmark comparing financial institutions or vendors

!Upcoming reports:� Insurance: Winning Distribution and Channel Management

Strategies� Consumer Banking and Credit: Lending Decision Engines:

Can They Do More Than Evaluate Credit Risk?� Capital Markets: Wealth Management Workstation of the Future� Payments: Industry Leading Corporate Payments Solutions� Corporate Banking: Winning SMB Corporate Banking Solutions


! Please email me [email protected]

! Please fill out your evaluation form

! Please drop off your badge in box as you leave our session

Documents

Sales and Marketing Strategies That Work for Financial Services · 2009-04-17 · That Work for Financial Services March 2008 Julio Gomez Research Vice President ' 2008 Financial