Summer Internship Project 2013

Understanding the relevance of customer power messages by conducting survey

Submitted By:

Sushovan Saha Roll No: 2012120

Project Guide: Mr. Kaushik Ghate Vice President & Head-Analytical Marketing HDFC Bank Faculty Guide: Prof. Ayesha Gonsalves Goa Institute of Management

MEMORANDUM OF TRANSMITTAL
Date: May 31, 2013

To: From: Subject:

MR. Kaushik Ghate, Vice President & Head-Analytical Marketing, HDFC Bank Sushovan Saha Understanding the relevance of customer power messages by doing survey

Here is the report you requested on May 31, 2013 regarding the Analysis of effectiveness of customer power messages in HDFC Bank. The Study included the collection of primary data, which was collected in form of Questionnaire from different ATMs of HDFC bank and further analysed and interpreted.

This project intends to identify the recall rate of Customer Power messages in ATM and netbanking by HDFC bank customers. It also finds the relevance of Customer Power message to customers and exploring new product offerings in Customer Power

I sincerely extend my gratitude to Mr. Venkatesh D, Senior Manager, Analytical Marketing Dept. for providing me the opportunity to undergo the project.

Last but not the least will like to thank all the employees who supported me all around the tenure of projects.

Table of Contents

1. Background 4 1.1 Company Profile ...4 1.2 Business Unit .4 2. Project Definition .. 5 2.1 Objective .. 5 2.2 Scope . 5 3. Review of Literature 6 3.1 What is Analytics? .. 6 3.2 Analytics in HDFC Bank: 7 3.3 Analytics Infrastructure in HDFC Bank 8 3.4 Analytical Marketing Process Flow in HDFC Bank 10 4. Project Flow ...12 4.1 Understanding Customer Power ...12 4.2 Knowing Internal datasources of HDFC Bank: ...14 4.3 Preparing the questionnaire ...14 4.4 Data Collection ... 15 4.5 Analysis of Data ..16 4.5.1 Recall rate 16 4.5.2 Message Content Clarity.17 4.5.3 Time spent for ATM transaction19 4.5.4 Most Identifiable Products in ATM ..21 4.5.5 Most Identifiable Products in Netbanking24 4.5.6 Comparison with Base for campaign(last 3 months)27 4.5.7 Relevance .28 4.5.8 Message type preferred as Customer Power Message ... 29 4.5.9 Probable reason for not noticing Messages ..31 4.5.10 Likability Factors in a Message 33 4.5.11 Preference of Channels for communication 35 4.5.11.1 For All Age Group .. 35 4.5.11.2 For Age Group(More than 40) .. 36 4.5.11.3 For Age Group(Age upto 40). 38 4.5.11.4 Comparative Study for Preference of Channel 39 4.5.12 Distinctive Trends & Segments . 40 4.5.12.1 Family & Relationship Based message Liking . 40 4.5.12.2 Customers with high ATM usage .. 41 4.5.12..3 Customer clicked the Netbanking Lead 41 5. Takeaways from analysis ...43 6. Suggestions based on Analysis ...43 7. Referrences . 44 8. Appendix ..45
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1. Background 1.1 Company Profile: HDFC Bank ltd is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of 1 November 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on May 2013, HDFC Bank has 3,062 branches and 10,743 ATMs, in 1,568 cities in India, and all branches of the bank are linked on an online real-time basis. As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5,167.07 crore (US$890 million), up 31.6% from the previous fiscal.

The bank provides services like wholesale banking services, retail banking services and treasury.

1.2 Business Unit: Analytical Marketing, Mahalaxmi, Mumbai The analytical marketing unit is responsible for the development of analytical frameworks and statistical models that provide solutions for customer lifecycle management, campaign operations, portfolio insight, product prioritization for cross sell and up-sell, product propositions for new launch and driving usage of cost effective channels.

2. Project Definition: 2.1 Objective: Understanding the relevance of customer power messages by conducting survey.

2.2 Scope:

The project will be helpful to the below mentioned actionable items To check whether customer is able to Recall the Customer Power message shown to them in ATM/Netbanking Identifying the products recognized by the customer. Understanding the relevance of Customer Power messages. Reasons for not noticing Customer Power messages. Preference of Channels by the customers.

3. Review of Literature: 3.1 What is Analytics? Analytics is the discovery and understanding of the meaningful patterns in data. It is valuable in areas rich with recorded information, where the daily detail records are maintained. Analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. Analytics often favors data visualization to communicate insight. Firms may commonly apply analytics to business data, to describe, predict, and improve business performance. Specifically, the arenas within analytics include enterprise decision management, retail analytics, store assortment and SKU optimization, marketing optimization and marketing mix analytics, web analytics, sales force sizing and optimization, price and promotion modeling, predictive science, credit risk analysis, and fraud analytics. In short Analytics is an experience based science used to predict future using the rules derived basis past learnings.

3.2 Analytics in HDFC Bank: As one of Indias largest banking institutions, HDFC Bank has embraced sophisticated information technology to pursue its expansion from corporate banking to become a world-class provider of wholesale and retail financial services. SAS provides a broad range of analytics to help HDFC Bank make credit decisions, enhance its cross-sell and up-sell marketing, and comply with strict regulations. With an unswerving commitment to a world-class technology infrastructure, more than 18 million customers can visit more than 1,700 networked branches in hundreds of cities, use thousands of ATMs, and take advantage of online and telephone banking. Over the years IT investments and deployments have evolved into the foundation for even greater value than streamlined transaction processing. Drawing on their massive volumes of data managed in large data warehouses HDFC Bank is using sophisticated solutions from SAS to generate an entirely new class of analysis and insights relating to customer relationship management, regulatory compliance, credit assessments and more.

SAS, combined with the bank's CRM solution, helps HDFC Bank model its customer data and assign propensity to buy, spend and (for credit and debit cards) activate. SAS helped the bank target sales communications to its customers thereby reducing the number of calls each customer receives. Additionally, the highest-performing, highest-margin strata of customers - the "Imperia" customers receive an almost concierge-like experience with aggressive, attractive pricing and multiple cross-selling offers. They are able to reach a greater number of highermargin customers at far lower cost." Today, more than 70 percent of HDFC Bank's credit card portfolio is a result of cross-sales to existing customers of standard liability products, such as savings and salary accounts.

3.3 Analytics Infrastructure in HDFC Bank:

The analytics infrastructure of HDFC bank can be divided in the following four stages. Reporting Analysis Monitoring Prediction

A. Reporting: This part mainly talks about what happened till now. In this stage different queries are executed to find out the details related to the objective of the research. Adding to that various searching tools are used which accelerates the data finding procedure. The complexity of this part is low and also business value is less compare to the other stages. B. Analysis: This stage deals with the query why the events happened. Different Online Analytical Processing tools(OLAP) and visualization tools are used here. The complexity of this part is greater than the reporting stage. Business value also increases in comparison to the reporting stage. C. Monitoring: In this stage dashboards and scorecards are prepared to find out to what is happening now. This stage is more complex compared to the previous two stages and also it has a greater business value than the previous stages. The scorecards are prepared in this stage by using complex statistical measures which gives a target customer to the company in low cost option.

D. Prediction: In this last stage of analytics future is predicted based on the outcome of the last three stages. The business finds the answer of what can happen in future in this stage.

The complexity of this stage is maximum and so is the business value. The revenue of the company and growth in business of the company by using the analytics is largely depends on this stage.

3.4 Analytical Marketing Process Flow in HDFC Bank: The process of analytical marketing unit can be divided into three main stages mainly. The stages are Customer Analytics, Campaign Operations and Tracking and MIS. The details of the various sub-stages are given below.

A. Customer Analytics: The various operations involved in this stage are Business Briefing
and discussion, Data Access and Extraction, Data mining & solution development and finally validation & presentation.

B. Campaign Operations: Campaign operations like creating the Campaign in UNICA,

Campaign RUN, exclusions from campaign base and quality check is done in this stage. After all the previous stage is completed successfully the campaign is launched at the end of this stage.

C. Tracking and MIS: Campaign evaluation and MIS creation is done in this stage and
from that Analytical solution is found out.

The detail process flow of the analytical marketing process flow in HDFC Bank is given in the following diagram.

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4. Project Flow: 4.1 Understanding Customer Power: After developing the basic idea of the functionality of Analytical marketing team more focus is given in the Project related work. The assigned project needed the understanding of the following topicsa. Definition of Customer Power: The Customer power is a marketing tool developed by NCR which is used by HDFC Bank in ATMs and Netbanking to generate personalized messages to individual customer. The personalized message can be different things like regulatory messages, offering for new product or offers available in debit/credit card of the individual customer. It provides marketers with a continuous loop of customer transaction information and feedback. This data can be drawn directly from a wide variety of online or offline databases and customer interaction points including ATMs, retail checkouts, Web sites, customer call centers, bank branches and kiosks. To facilitate customer insight, giving businesses the information they need to personalize their offer to each customer's individual needs and wants advance analytics is applied. The resulting message can then be delivered in a coordinated manner across multiple customer communication channels. Just as importantly, because the solution has the ability to draw information from live data sources, the customer's reaction can be tracked automatically and the offer further customized to reflect that response.

b. Process of Customer Power: Based on the transaction history the customers are scored for different products and chance of consuming a product by a customer is also scored. Based on this score value the people with higher scores are offered with different product. So customer A may be shown a message for Personal Loan but customer B is shown a message for Home Loan by the customer power tool as the score for using Personal Loan is higher for A and score for using Home Loan is higher for B.

c. Message Content: The message details that are currently shown to the customer are checked. The message content can be anything from regulatory messages, Offering for new product or offers available in debit/credit card to a simply birthday wish to the customer.

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Example of customer power messages:

i.

Message for Platinum Debit Card Update:

ii.

Message for Recurring Deposit(RD):

iii.

Message for Titanium Debit Card Update:

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4.2 Knowing Internal datasources of HDFC Bank: In the next step the basic understanding of HDFC bank database is developed which will be required in the analysis. The knowledge related to this are strictly confidential as instructed by the officials.

4.3 Preparing the questionnaire: After completing the initial steps primary challenge was to collect the maximum information from the customers. This is possible only with the direct feedback from the customers . To get the maximum data from the customers a questionnaire is prepared for survey. The questionnaire collects the information about the following topics from the customer1. Demographic Info of the customer 2. Primary Bank of the Customer 3. Frequency of going to ATM 4. Frequency of going to HDFC Bank ATM 5. Frequency of using HDFC Netbanking Facility 6. Average Time spent on ATM. 7. Customer Power messages recalled by the customers in ATM/Netbanking 8. Action taken by the customer if the message noticed in ATM/Netbanking 9. What kind of messages can be helpful to customers 10. Products recalled by the customer 11. Likability factors in a message 12. Probable reasons for not noticing messages by the customer 13. Effective communication channels

The detail questionnaire is given in the Appendix section.

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4.4 Data Collection: In this step I need to perform the following tasks. Target ATMs: I need to find out ATMs from the database where the max number of customer power messages are shown as to survey the customers in that ATM will give the maximum chance to find the right customer with authenticate information. Survey: After marking the target ATMs survey is performed in the target location. The survey is performed in day time during 11am 3 pm. The location which were covered are Grant Road, Charni Road, Dadar, Goregaon and Andheri. Constraints in Survey: The obstacles which were faced during surveying people are the followings Low footfall during the day time of summer season. Most of the people are in hurry and unwilling to answer. People coming with the complaints and diverting from the obctive of the survey.

The data collected are consolidated in the attached spreadsheet.

Survey Results.xlsx

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4.5 Analysis of Data: 4.5.1 Recall rate: This rate will give the understanding of the percentage of people who are able to identify the Customer Power messages shown to them. The corresponding question in the questionnaire which provides data for this analysis is Q. Do you remember any informative messages shown to you apart from transaction related messages at ATM? o Yes o No Below is the details of the response from customers.

Category Total number of persons surveyed(having HDFC BankA/c) Total number of persons who can recall the message Graphical Presentation:

Count 120 60

Customer Power Message Recall Rate

50% Recalled 50% Not Recalled

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4.5.2 Message Content Clarity: The survey also intended to understand the message content clarity of the customer power messages shown to the customers adding to the recall rate of the messages. Using this data one can evaluate whether the current messages are clear with the subject line and content or there a change needed in the messages content display. The question in the questionnaire which fetched this data from the customers is-

Q. Was the message content clear enough to understand the subject and information? o Yes o No

Below are the details of the response from customers. Category Total number of persons surveyed Total number of persons who can recall the message Total number of persons who clearly understood the message Count 120 60 57

Graphical Presentation:

Cusstomer Power Message Clarity

5%

Clarity 95% No Clarity

The above graph represents the percentage of people who are clear with the message content among the people who are able recall the message shown to them.

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Conclusion : i. ii. 50% of the persons are able to recall the customer power messages shown to them. Considering the fact that few of the persons are not shown any customer messages, we can conclude that more than half of the persons who are shown the customer power messages are able to recall the customer power messages. Most of the persons(95%) who can recall the message are clear with the message content. So the message content clarity is good.

iii.

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4.5.3 Time spent for ATM transaction: Average time spent by a customer in ATM is calculated in this analysis. The objective of this study to find out whether the customers are in hurry to finish the transaction. If the average time spent in ATM for transaction is low then it is probable that customers complete their transaction in hurry and chances of following the customer power message reduces. The question which gives the data for this analysis isQ. How much time do you spend in ATM? o 1-2 minutes o 2-4 minutes o 4-6 minutes o 6-10 minutes o More than 10 minutes

Below are the details of the response from customers. 0-2 minutes 2-4 minutes 4-6 minutes 57 45 12

Persons using ATM

So the average time spent by a customer = (1*19 +3*15 + 5*4)/114 =2.21 minutes The graph below shows the percentage distribution for various time duration based on the customers surveyed.

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Graphical Presentation

11% 39% 0-2 minutes 2-4 minutes 50% 4-6 minutes

Conclusion: i. ii. The average time spent by a customer in an ATM is only 2.21 minutes. The fact that 50% of the customer finishes their transaction within 2 minutes and 39 % of the customers finishes within 4 minutes is inline with conclusion that most of the customers are in hurry to finish the transaction.

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4.5.4 Most Identifiable Products in ATM: This section gives the details of the products that are identified by the customers for ATM. The products which are shown to the customers while having ATM transaction and customers are able to recall the message and identify the products.

The question which get the details for this section isQ. Do you remember whether the message was about the following topics? (Answer only if YES in Q4) Gold Loan Personal Loan Auto Loan Bill payment Child Plan Credit Card acquisition Mutual Fund Platinum/Titanium Debit Card Update Loan Against Property Home Loan Health Insurance General Insurance Demat Account Two Wheeler Loan Fixed Deposit Life Insurance Email Update E-Statement Registration Petrol Utility Others Do not Remember

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Below are the details of the count of the customers who are able to recognize the product. Total No of customers recognized Product Name
36

Gold Loan
36

Personal Loan
24

Auto Loan
18

Health Insurane
15

Home Loan
15

Two Wheeler Loan Credit Card Acquisition Platinum/Titanium Debit Card Update Fixed deposit

12 9 9 9

Mutual Fund
9

Life Insurance
9

Bill Payment
9

Child Plan
6

Demat Account Loan Against Property General Insurance

6 3 0

Email Update E-statement Registration Petrol

0 0 0

Utility

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Graphical Representation:

Products identified by Customers - shown in ATM

General Insurance Loan Against Property Demat Account Child Plan Bill Payment Life Insurance Mutual Fund Fixed deposit Platinum/Titanium Debit Card Credit Card Acquisition Two Wheeler Loan Home Loan Health Insurane Auto Loan Personal Loan Gold Loan Series1

Conclusion: i. Most identifiable products in ATM are Gold Loan,Personal Loan, Auto Loan, Health Insurance & Home loan. Products like Email Updates, Estatement Registration, Petrol and Utility are not recognized.

ii.

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4.5.5 Most Identifiable Products in Netbanking: This section gives the details of the products that are identified by the customers for Netbanking. The products which are shown to the customers while using netbanking and customers are able to recall the message and identify the products. The question which get the details for this section isQ.Do you remember any of the following ads/banners shown to you during netbanking? Gold Loan Personal Loan Auto Loan Bill payment Child Plan Credit Card acquisition Mutual Fund Platinum/Titanium Debit Card Update Loan Against Property Home Loan Health Insurance General Insurance Demat Account Two Wheeler Loan Fixed Deposit Life Insurance Email Update E-Statement Registration Petrol Utility Others Do not Remember

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Below are the details of the count of the customers who are able to recognize the product. Total No of customers recognized Product Name
30

Personal Loan
18

Home Loan
18

Gold Loan
12

Life insurance
12

Demat Account
9

Auto Loan
9

Health Insurane
9

Two Wheeler Loan Loan Against Property Fixed deposit Credit Card Acquisition Petrol

6 6 6 3 0

Mutual Fund
0

Bill Payment
0

Child Plan Platinum/Titanium Debit Card Update General Insurance

0 0 0

Email Update E-statement Registration Utility

0 0

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Graphical Representation:

Products identified by Customers - shown in Netbanking

Mutual Fund Credit Card Acquisition Fixed deposit Loan Against Property Two Wheeler Loan Health Insurane Auto Loan Demat Account Life insurance Gold Loan Home Loan Personal Loan 0 5 10 15 20 25 30 Series1

Conclusion: i. Most identifiable products in netbanking are Personal Loan, Home loan, Gold Loan, Life insurance and Demat Account. Products like Email Updates, Estatement Registration, Child Plan, Bill Payment. Debit card Update, General Insurance and Utility are not recognized.

ii.

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4.5.6 Comparison with Base for campaign(last 3 months): A comparative study is done by taking the customer base for campaigning in the last 3 months for different products and the survey results for identifying the products. From the comparison it is observed that Products that are coming as most recognized product & present at the top of the list are with more than 10lacs customer base for at least once in last 3 months - Home Loan, Personal Loan, Gold Loan, Auto Loan. Products which are not recognized despite targeting large customer basePlatinum/Titanium debit card update, Credit card acquisition, Fixed Deposit & Estatement Registration.

Base comparison.xlsx

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4.5.7 Relevance: In this section the relevance of the customer power message is determined. The count of the customers who clicked the message lead either in ATM or in netbanking as it was relevant for them is calculated. The result of the calculation is tabulated below.
Category Total Number of person surveyed Total Number of person who can recall the message Total Number of person who found it relevant either in ATM or in Netbanking Count 120 60 24

Graphical Representation:

Rate of relevance

40% Relevant 60% Not Relevant

Conclusion: i. The customer power messages are effective 40% of the customer who can recall the message are actually applying for the product after seeing the message by clicking the lead.

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4.5.8 Message type preferred as Customer Power Message: This section gives the insights about the message types that the customers would like to see in ATM and netbanking. The types that were checked in surveysRegulatory Messages(Example: Nominee name missing/Update contact details) Promotional Messages for new product Suggestion of Bank for right products to individual customer Technical advancement in HDFC Bank Transaction process(Example: Netsafe) Stock/ Currency Market changes Information Offers available in HDFC Bank credit card/debit card/netbanking Also the customers who do not want to see any messages are also counted in the data collection.

The customer response details are given below. Messsage Type Total No of customers recognized 27 33

Regulatory Messages Promotional Messages for new Product Suggestion of Bank for right product to individual customer Technical Advancement in HDFC Bank Transaction Process Stock/Currency Market Changes Info Offers available in HDFC Bank Debit card/Credit Card/Netbanking Do not want to see any messages

27

57 30

48 9

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Graphical Presentation:

Regulatory Messages 4% 21% 14% 12% Promotional Messages for new Product Suggestion of Bank for right product to individual customer Technical Advancement in HDFC Bank Transaction Process Stock/Currency Market Changes Info Offers available in HDFC Bank Debit card/Credit Card/Netbanking Do not want to see any messages

13% 24%

12%

Conclusion: i. Most of the customers want to see messages in ATM & Netbanking as the percentage of those who dont want to see any messages is only 4%. Most preferable message types are - Technical advancement in HDFC Bank Transaction Process(25%) and Offers available in HDFC Bank debit card/credit card/netbanking. The total percentage of people who would like to see promotional message(14%) and get the suggestion for right kind of product(12%) is 26%. So nearly one fourth of the customers would like to be approached by the bank for new products and like to get the information related to that.

ii.

iii.

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4.5.9 Probable reason for not noticing Messages: This section tries to get an insight of the reasons for not noticing the messages. Most of the people are not sure whether they noticed the message always while it was intended for them. If they did not notice the messages when it was shown to them then what could be the probable reasons are found out by this analysis. The reasons which were considered as probable reasons areMore involvement in Transaction & Hurry to finish Messages not relevan to the customer Messages were not catchy Messages not wanted by the customer Other channels preferred over ATM/Netbanking for communication

Customer response details are given below.

Reasons More involvement in Transaction & Hurry to finish Messages not relevan to the customer

Count 72 33 0

Messages were not catchy 18 Messages not wanted by the customer Other channels preferred over ATM/Netbanking for communication Others 3 3

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Graphical Representation:

More involvement in Transaction & Hurry to finish 2% 2% Messages not relevan to the customer 0% 14% Messages were not catchy 26% 56% Messages not wanted by the customer

Other channels preferred over ATM/Netbanking for communication Others

Conclusion: i. Most probable reason for not noticing messages is involvement in transaction and hurry to finish(56%) Also one fourth of the respondents(26% approx) feel that they probably not noticed the messages as they were not relevant to them and they were not in need of any product. Other channels preferred over ATM and Netbanking is only 2% of the response. Also percentage of the response where customers dont want to see any messages is 14%. So netbanking and ATM channel can be used for X-sell.

ii.

iii.

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4.5.10 Likability Factors in a Message: This part deals with the psychological aspect of the customers. It tries to find out what can be effective presentation strategy of the messages for the customers. It checks the attractive points in a message and how it can capture the attention of the maximum customers. The factors that could be effective to get the customer attention areAttractive Slogans Product Details Family/Relationship Based Brand Ambassadors/Celebrities Functional/Unconventional characters Use of Facts and figures Heartfelt/Inspiring Humor Customer response details are given below. Factors Attractive Slogans Product Details Family/Relationship Based Brand Ambassadors/Celebrities Fictional/Unconventional Characters Use of Facts and Figures Heartfelt/Inspiring Humor Others Total Count/factor 12 45 27 3 12 42 3 6 24

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Graphical Representation:
Attractive Slogans 14% 7% 26% Product Details Family/Relationship Based Brand Ambassadors/Celebrities 15% Fictional/Unconventional Characters Use of Facts and Figures 2% Heartfelt/Inspiring

2%

3%

24% 7%

Conclusion: i. Most of the customers want to see Product Details or Use of Facts and Figures in the messages Family and Relationship based messages are liked by the people who are having their age between 30-60(check segmentation) Showing celebrities in the message will not be appealing to the customers rather customers prefer to get full details where their money is involved.

ii.

iii.

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4.5.11 Preference of Channels for communication: 4.5.11.1 For All Age Group: This sections tries to find out the effective channels for communication through which it can reach out to the maximum customers and also customer to a particular age group. The customers were asked to rank the channel of preference according to their usage. The channels which are the part of the survey areTV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message The customer response details are given below. The channels with highest preference, lowest preference and no preference are given 6,1,0 points respectively.

Channels

TotalPoints/Channel

No of Customers Mentioned 60 90 69 36 42 33

Average rating 5.20 4.73 5.00 4.25 4.71 2.82

TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

312 426 345 153 198 93

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Graphical Representation:

Channel preference - All Age

28% 23% 20% 6% 13% 10%

TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

4.5.11.2 For Age Group(More than 40): The analysis further extended for age group more than 40 to see if there is any change in the preference of channels for people with higher age. The same operation is performed as above for the people more than 40 years of age. The customer response details are given below for the people who are more than 40 years old.

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Channels

TotalPoints/Channel

No of Customers Mentioned 18 30 30 3 6 6

Average rating 5.20 4.73 5.00 4.25 4.71 2.82

TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

102 153 162 15 27 24

Graphical Representation:

Preference of Channel - Age more than 40

32% 21% 6% 3%

TV/Newspaper ad Direct Mail/Phone Call 33% ATM Social Media Banners in Netbanking

5%

Radio Message

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4.5.11.3 For Age Group(Age upto 40): The analysis is also done for people in age group upto 40 years to see if there is any change in the preference of channels for people with higher age. The same operation is performed as above for the people upto 40 years of age. The customer response details are given below for the people who are more than 40 years old. No of Customers Mentioned
42 60 39 33 36 27

Channels

TotalPoints/Channel

Average rating
5.00 4.55 4.69 4.18 4.75 2.56

TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

210 273 183 138 171 69

Graphical Representation:

Preference of Channel - Age Upto 40

18% 26% 20% 7% 13% 16% TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

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4.5.11.4 Comparative Study for Preference of Channel:

Number of customers Customers with age upto 40 = 26 Number of Customers with age more than 40 = 14
Total Points/ Chann el (Age More than 40) Number of Custome rs Mentione d (Age More than 40) Number of Customer s Mentione d (Age Upto 40) Percentag e of Usage for Age Group More than 40

Preference of Channel for communication

Total Points/ Channel

Number of Customer s Mentione d

Total Points/ Channel (Age Upto 40)

Percent age of usage for age group upto 40

312
TV/Newspaper ad

60 90 69 36 42 33

102 153 162 15 27 24

18 30 30 3 6 6

210 273 183 138 171 69

42 60 39 33 36 27

42.86 71.43 71.43 7.142 14.285 14.287

53.85 76.92 50.00 42.31 46.15 34.62

426
Direct Mail/Phone Call

345
ATM

153
Social Media

198
Banners in Netbanking

93
Radio Message

Conclusion: i. People more than 40 years can be reached out only through 2/3 channels preferably Direct Mail/ATM/ TV Newspaper ad People up to 40 years can be reached through all the channels as the percentage of response is high varying between 34%-76%. Radio message can be omitted from the list.

ii.

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4.5.12 Distinctive Trends & Segments: 4.5.12.1 Family & Relationship Based message Liking: Analyzing the data it is found that people who are liking the family & relationship based messages are in the age range of 30-60 years. The demographic details of the customer who have shown interest for family and relationship based data are given below.
Sl No Gender 2 M 5 M 7 M 20 M 22 M 23 M 28 M 33 M 42 M 45 M 47 M 60 M 62 M 63 M 68 M 73 M 82 M 85 M 87 M 100 M 102 M 103 M 108 M 113 M Age Profession 45 Business 53 Business 31 Student 33 Service 32 Service(Supervisor) 56 Service(Govt) 34 Service 34 Service(technician) 45 Business 53 Business 31 Student 33 Service 32 Service 56 Service 34 Service 34 Service 45 Business 53 Business 31 Student 33 Service 32 Service 56 Service 34 Service 34 Service

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4.5.12.2 Customers with high ATM usage: By analyzing the data it is found that most of the persons who are using ATM for more than 12 times on an average per month are either not using Netbanking Facility or Do not Remember any message shown to them in Netbanking. So Customer Power messages in Netbanking may not be effective for this kind of customers.

The data related to this analysis is attached in the following spreadsheet.

High ATM Usage.xlsx

4.5.12.3 Customer clicked the Netbanking Lead: The Customers who clicked the lead in Netbanking Customer Power message are mostly the customers who are using netbanking facility for more than 3 years. No customers, using the netbanking from less than 1 year, clicked the lead in customer power messages in netbanking.

Rating Criteria for Lead clicking: Clicked the lead when it was relevant: 3 Clicked the lead not depending on relevance: 1 Rating Criteria for duration in Netbanking: Duration of using Netbanking: More than 3 years : 3 1-3 years: 2 Less than 1 year: 1

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Sl No 8 13 29 35 38 48 53 69 75 78 88 93 98 115 118

Using HDFC Netbanking facility 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Duration of using HDFC Net baking Facility 2 3 3 3 3 2 3 3 3 3 2 3 3 3 3

Clicking the message lead(in Netbanking) 3 3 3 1 3 3 3 3 1 3 3 3 3 1 3

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5. Takeaways from analysis:

Decent number of customers are able to recall the customer power messages & finding it relevant. No content clarity issue with current messages. Products with large customer base target is not the only driving factor for product recognition in customer power message. There is a possible underlying need also which makes the products more recognizable. Overall half of the customer response(preferable message types) is open to the idea of new product or offer messages. Hurry to finish the transaction is a constraint to the effectiveness of messages. Half of the customers response points towards more detailed offering in messages. For people more than 40 years age Netbanking messages are not as effective as ATM & Direct mail/phone call High ATM usage may lead to Low usage of netbanking causing ineffectiveness of netbanking customer power messages for those customers. Longer the duration of using netbanking, greater is the chance to convert a customer using netbanking Customer power messages.

6. Suggestions based on Analysis: Products which are much needed by the customer at a particular time period based on the market condition and other factors, can be targeted to more number of customers to drive the sell up. Messages can be more detailed with effective use of facts & figures. Alternative measured need to be taken to deal with the hurry to finish the transaction problem. Effective use of blank space in ATM transaction slip can be one solution based on the cost & other technical constraint. The number of customers targeted in netbanking can be reduced for customers more than 40 years of age by correlating their transaction behavior in netbanking & frequency of using netbanking to chose the effective customer base for this age group. People who are using netbanking for long should be made the primary target for X-sell using netbanking Customer Power messages. Customer Power message type should not be limited to high volume product offering messages. It should show customers various type messages which could be helpful for them so that the Customer power messages become more relevant to the customers.

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7. Referrences: Internal documents of HDFC bank http://en.wikipedia.org/wiki/HDFC_Bank

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8. Appendix: Questionnaire

A. Name

B. Gender o Male o Female C. Profession

Age

D. Primary Bank

E. Do you have any account in HDFC bank ? o Yes o No F. Contact No(Optional)

Please fill up part EA -> If you have HDFC Bank A/c EB -> If do not have HDFC Bank A/c

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EA(If you have HDFC Bank Account) 1. How frequently do you use an Automated Teller Machine per month? o Less Than 1 o 1 to 6 Times o 7 to 12 Times o Over 12 Times 2. How many times have you gone to any HDFC Bank ATM in Last month? o Never o 1 to 6 Times o 7 to 12 Times o Over 12 Times o Do not remember 3. How much time do you spend in ATM? o 1-2 minutes o 2-4 minutes o 4-6 minutes o 6-10 minutes o More than 10 minutes 4. Do you remember any informative messages shown to you apart from transaction related messages at ATM? o Yes o No 5. Do you remember whether the message was about the following topics? (Answer only if YES in Q4) Gold Loan Personal Loan Auto Loan Bill payment Child Plan Credit Card acquisition Mutual Fund Platinum/Titanium Debit Card Update Loan Against Property Home Loan Health Insurance
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General Insurance Demat Account Two Wheeler Loan Fixed Deposit Life Insurance Email Update E-Statement Registration Petrol Utility Others Do not Remember

6. Was the message content clear enough to understand the subject and information? o Yes o No 7. Do you generally check the messages while transacting in ATM?(Answer only if YES in Q4) o Yes, if the product is relevant to me o Yes, even if the product is not relevant o Sometimes, not dependent on relevance o Never 8. What could be the message type you want to see while making ATM Transaction?(Can tick more than one option) o o o o o o o o Regulatory Messages(Example: Nominee name missing/Update contact details) Promotional Messages for new product Suggestion of Bank for right products to individual customer Technical advancement in HDFC Bank Transaction process Stock/ Currency Market changes Information Offers available in HDFC Bank credit card/debit card/netbanking Do not want to see any messages Others

9. Have you purchased any product through internet? o Yes o No 10. How long have you been using the netbanking facility and average number of transactions per month? o Never o 1 to 6 months o 7 to 12 months o 1 -3 Years o More than 3 Years
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Average number of netbanking transactions/month 11. Are you using HDFC netbanking facility? (Omit if never in Q7) o Yes o No 12. Do you remember any of the following banners shown to you during netbanking?( Omit if NEVER in Q7 or NO in previous question) Gold Loan Personal Loan Auto Loan Bill payment Child Plan Credit Card acquisition Mutual Fund Platinum/Titanium Debit Card Update Loan Against Property Home Loan Health Insurance General Insurance Demat Account Two Wheeler Loan Fixed Deposit Life Insurance Email Update E-Statement Registration Petrol Utility Others Do not Remember

13. Do you generally check the details of the product offered by bank after seeing it in ad/message/banner during netbanking? (Omit if NEVER in Q7 or Do not remember in previous question) o o o o Yes, if the product is relevant to me Yes, even if the product is not relevant Sometimes, not dependent on relevance Never

14. What could be the reason for not noticing the details of messages/ads/ banners shown to you while availing ATM/netbanking facility?(can tick more than one option) o I am more involved with the transaction process o I am in hurry to finish the transaction
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o o o o o o

The messages are not relevant to me The messages are not catchy Silent messages do not catch attention Its just another ad to me I would like to get messages in other channel(ex. TV, Social Media) Others

15. What do you like in a message?(Can tick more than one option) o Attractive Slogans o Product Details o Family/Relationship Based o Brand Ambassadors/Celebrities o Functional/Unconventional characters o Use of Facts and figures o Heartfelt/Inspiring o Humor o Others 16. Rank the channels according to preference from the following list through which your bank can reach out to you with new product offerings? o o o o o o TV/Newspaper ad Direct Mail/Phone Call ATM Social Media Banners in Netbanking Radio Message

EB(If you do not have HDFC Bank Account) 1. We are happy that you chose to transact with us. Why have you chosen HDFC Bank ATM for transaction? (Can tick more than one option) o This ATM is nearest o Find it easy to access/withdraw o Less issues like insufficient cash or system error o Available in all location o ATMs are Neat & Clean o Easily recognizable for its Brand Image o No specific reason o Others

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2. Do you often visit HDFC Bank ATM? o Yes o No 3. Would you like to open an account with HDFC Bank? o Yes o No o May Be 4. Reason for not opening an A/c with HDFC Bank? (Answer only if NO in Q3)

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