How to target those small and medium-sized financial enterprises serving "long-tail" customers for marketing innovation?

Thoughts and Suggestions on Commercial Banks' Expansion of Long Tail Customers

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Read 8711 Turn 792018.04.24 Concerns

The concept of the Long Tail was first introduced by Chris Anderson, editor-in-chief of WIRED magazine, in his article "The Long Tail" in October 2004.

The concept of the long tail was first introduced by Chris Anderson, editor-in-chief of WIRED magazine, in his article "The Long Tail. Anderson) in October 2004, "The Long Tail" article proposed, Chris Anderson studied Amazon, NETFLIX and other Internet retailers sales data, and compared them to Walmart and other traditional retailers sales data, and found that in the Internet commerce market, 90% of the products are simply not available in the traditional market. In 2004, Chris Anderson summarized this phenomenon and proposed the "Long Tail Theory". Based on a large sample of statistical analysis, the Long Tail Theory suggests that the profitability of a cold product can be the same as that of a popular product. The Long Tail Theory has attracted a lot of attention.

The Long Tail Theory suggests that due to cost and efficiency factors, in the past, companies could only focus on important customers or important things, i.e., the traditional law of "two or eight" -- 80% of a company's sales come from 20% of its goods; 80% of its sales revenue is generated by 20% of its important customers; 80% of its sales revenue is generated by 20% of its important customers. 80% of a company's sales come from 20% of its goods; 80% of its sales revenue is generated by 20% of its important customers. If these people or things are depicted by a normal distribution curve, the enterprise can only pay attention to the "head" of the curve, while ignoring the majority of people or things at the "tail" of the curve, which require more energy and cost to pay attention to. For example, when banks sell financial products, their attention is mainly focused on a small number of so-called "VIP" customers, and they have no time to pay attention to ordinary customers who are in the majority. With the development of computer and network information technology, banking business can break through the limitations of the network through electronic banking channels and the Internet and other means to reduce the cost of physical network, customers can use information network equipment for self-service, greatly reducing the cost of personnel services. The cost of attention due to economies of scale has been greatly reduced, and it is possible to pay attention to the "tails" of the normal distribution curve at a very low cost, and the overall benefits generated by paying attention to the "tails" may even exceed the "head". "

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The significance of the long tail theory to the development of commercial banks' retail business

In the domestic financial field, the long tail theory also has a more useful reference significance and far-reaching impact on the development of commercial banks' retail business. In the past customer orientation, commercial banks and other traditional commercial enterprises are no different, are customarily divided into high and low levels of customer groups, and maintain the "law of two or eight" of the inertia of thinking, that is, 20% of high-end customers to create 80% of the wealth. The difference in the success of China Merchants Bank's credit card business is that it individualizes the "customer" rather than grouping them, believing that discovering the neglected needs of each customer will undoubtedly lead to a huge long-tail market. Over the past decade, China Merchants Bank has been a model of "innovative marketing" in domestic commercial banking. As early as in the "one card" era, China Merchants Bank was the first in the domestic banking industry, street stalls, sales products and carry out three-dimensional marketing activities, these awareness and ability until now is still some commercial banks do not have. The formation process of the sales culture of China Merchants Bank is in fact the epitome of the experience of domestic commercial banks in finding out the development of retail banking business. This also directly promote the commercial banks have to shift their attention to the higher profit margins, the space is also larger intermediate business and retail business, this "long neglected tail" will be to a large extent to support the future development of domestic commercial banks space.

Basic analysis of long-tail customers of the bank

At present, the main groups of long-tail customers of the bank are collection and payment customers, farmers' card customers, citizen card customers and social security customers. The main features are as follows: (1) There are many sleep card accounts and most of them are zero-balance customers. (2) More inactive accounts and fewer active accounts. It is more common for one person to open multiple accounts, and financial transactions are infrequent. (3) The proportion of middle-aged and elderly customers over 50 years old is relatively high. (4) Low product coverage of the customer base, low opening rate of special e-banking channels, and low utilization rate of online banking and mobile banking.

Measures and suggestions for commercial banks to expand "long-tail customers"

(1) Utilize technological tools to enhance marketing effectiveness. The first is to establish a database analysis platform and long-tail customer analysis and evaluation system. We need to use big data to explore internal customer resources, collect customers' daily consumption habits, dietary preferences and other information from the bank's internal information system, two-way interaction with customers and POS and other cooperative merchants, build a big data analysis system, gradually realize the long-tailed customer tiered marketing system, identify customers with the help of behavioral targeting, geographic targeting, content targeting, etc., and improve the service efficiency and personalized service for long-tailed customers. depth of personalized services for long-tail customers. Secondly, it relies on electronic information technology to develop new products and reduce business transaction costs, and taps into long-tail customers on the Internet by vigorously promoting online banking, mobile banking, WeChat, credit card online quick payment, K-code payment, cloud flash payment, e-wallet and other business products.

(ii) Accelerating process reengineering and improving service efficiency. First, we are remodeling and updating the business operating system and processes to reduce the time that customers at the counter need to wait to do business. For example, the same customer in the same bank for different types of business, often need to repeatedly fill out all kinds of basic information, but also for example, at the same time for a number of businesses need to repeat the signature, if the bank can be integrated customer information and business credentials for the customer to realize the resources **** enjoyment, you can greatly simplify the operation of procedures to improve efficiency. Second, improve customer information data. As many long-tail customers have incomplete information data, especially the cell phone number is missing or wrong, etc., greatly limiting the bank's excavation and expansion of such customers, so it is necessary to carry out customer information governance through a variety of channels to improve customer information so that the bank through the analysis of the system of the long-tail customer base of customer type, age, product coverage, etc. all-round and multi-dimensional screening and classification, and then pushed to the text message, Telemarketing approach to make the bank more targeted to increase the success rate of precision marketing. Third, to enhance the branch counter, lobby marketing power, and further explore potential customers. Increase the standardization of branch services, through the standardization of products, services, processes, and enhance the ability to batch business processing, thereby improving the efficiency of the bank's services.

(3) Improve facilities and equipment to promote business development. In line with the continuous development of bank card business and electronic banking business, the facilities and equipment are further supplemented and improved, such as increasing the number of self-service equipment, so that individual customers feel more and more convenient and fast in the use of banking products, and gradually increase the market share and customer utilization of electronic banking products, so as to better bring into full play the scale effect of the bank's scientific and technological products and equipments, and to provide a better service for the bank to utilize the "long tail" of the bank. The theory of "long tail" provides sufficient hardware support for the development of retail business.

(4) Increase product innovation and enhance product characteristics. In the face of a large number of low-end retail customers, we should y understand the real needs of these "long-tail" customers for banking products and services, and design and innovate some targeted and suitable banking products and services according to local conditions, so as to win the recognition and acceptance of these customers. For example, these "long-tail" customers are generally less risk-resistant and do not know much about financial products and the market, so they can be offered some capital-protected and stable products and services in the form of simple and clear introductions. In addition, these "long-tail" customers tend to operate their funds infrequently and do not have special requirements for the time of capital transactions and deposits, so they can design more time-for-income products in the product structure to attract more "long-tail" customers by increasing the level of product returns.

(E) Adjust the caliber of assessment, increase the power of expansion. Transform the assessment concept of heavy personal deposits, personal financial net assets as the focus of the assessment, to enhance the power of outlets to expand the long-tail customers, focusing on the changes in the full amount of customer funds. Through the enhancement of various services to help the long-tail customers to improve the overall financial assets, reference to the "Balance Treasure" "WeChat Wealth Management" and other Internet financial management thinking, reduce the threshold of access to automatic financial management, the use of "fast Yibao

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