I am working for a newly established bank  as a sales
manager.Unfortunatley I don't have a sales team yet so i have decided
to start up a club of peple outside the bank in order to use them for
generating business and get rewarded accordingly. e.g. get the bank a
personal loan and get a reward of $30. what should this club called?
whom should I targert? what shoulb the rules of this club be? how to
manage it? how to control the members of the club? how should the
rewarding system function?  I need all these answeres in a
presentation form. Thanks

Hello Chanteur,

Thanks for this interesting question. Since what you want is a
suggested presentation for an innovative marketing strategy, I didn't
base it on research but in my own experience as a bank organizational
manager. Please consider that some of the suggestions may need
previous analysis such as profitability, regulations and legal
compliance, market research, IT support, procedural implications, etc.
So what I've prepared for you is an executive presentation for your
strategy, taking into account that some changes may occur as a
consequence of further analysis only feasible within your bank.

You can find a Powerpoint version of the presentation at this url:
http://us.f2.yahoofs.com/bc/3ccd1ef5/bc/GA/Club.ppt?bfsco6CB_COK5K4b

However, it is also posted here. In case there were a glitch and you
couldn't access the Powerpoint file, just copy it from here and paste
it in a Word file, and then export it to Powerpoint. I hope to have
met your needs, but if in any way you believe that something's
missing, please post a request for clarification.

The Investors' Club Project

Objective
To develop customers through selected key people outside the Bank.

System Overview
The Bank will identify a few segments of people considered to be
potentially influent on other peoples' financial decisions.
Through a direct marketing campaign, they will invite the key selected
people to join the Investors' Club, which will privilege them with a
series of benefits.
These benefits will be maintained and increased, according to a
scoring scheme, as they generate new businesses for the Bank.

Characteristics of the "Key People"
They hold positions in which they can have influence on others, such
as customers, employees, providers, etc.;
They already enjoy a good income, but haven't reached their goals yet;
They are bank customers (our or any bank), but not bank employees, and
they have excellent credit scores;
They are bank customers (our or any bank), but not bank employees, and
they have excellent credit scores.

Target Segments
Subject to further market research, the estimated target groups might be:
Intermediate management for companies of any industry;
Sales people, buyers, specially supervisors;
Entrepreneurs;
Retail store owners or managers.

Start Up
Invitations will be delivered via mail to the Bank's current customers
that match the target characteristics, and to people who also match
them but are not current customers (data bases are to be obtained);
For those who are not current customers the invitation will include an
offer for an account, so that if the person accepts becomes a new
customer:
the procedure will have to include prepaid postal answers and inbound
telemarketing for registration of new customers;
The mailing will need outbound telemarketing back up to enhance effectiveness;
The invitation will include a clear description of the benefits (the
rewarding system) for joining the Club.

Rewarding System
The members of the Club will be encouraged to interest their
acquaintances to become customers of the Bank;
For that purpose, the Club Members will be offered incentives centered
on an account for medium to long term investments;
Every time the Club Member generates a first time transaction for a
new customer, an amount of a quota will be credited in their account;
Alternatively and or complementarily, a point accumulation system will
be implemented, so that the amount is credited when the Club Member
gets a certain quantity of points;
The Bank will manage the investments either by its own fund or a third
party's fund;
The money credited in favor to a Club Member will be proportional to
the transaction generated by them, up to a top limit to be calculated;
Other incentives in cash can also be considered ?by crediting in a cash account;
Eventually, other kind of benefits such as discounts in stores,
hotels, travels, restaurants, etc. might be considered ?a Premium
Membership for the most cooperative Club Members will make a good
extra incentive;
An advantage for those new customers recommended by a Club Member
should also be considered, such as a bonus in certain transactions;
It's in the interest of the Club Member that the new customer
indicates who told them about the Bank.

Main Process
With the invitation, the potential Club Members will receive a plastic
card with a number, that they would activate either by telephone,
online, or ATM;
Once the Club Member interested an acquaintance to be a customer of
the Bank, the Club Member will generate an electronic transaction
(phone, internet, ATM) informing the Bank that a particular individual
will contact them within a time previously stipulated;
When the new customers perform their first transaction with the Bank,
an automated process generates to credit the corresponding benefit for
the Club Member.

---

Request for Answer Clarification by chanteur-ga on 01 Aug 2005 23:45 PDT

HI
Actually I liked the Answer a lot but I felt it was not enough I need
you to give a detailed explenation of how to implement this in the
bank. Think of it as a manual for the club. this manual should contain
every thing, in a way that it would be ready to start it up I mean to 
say, every department in the bank should know his role
CSA role 
IT role
Sales role
Advertising role etc
your quick answer is higly appreciated

---

Request for Answer Clarification by chanteur-ga on 01 Aug 2005 23:48 PDT

HI
Actually I liked the Answer a lot but I felt it was not enough I need
you to give a detailed explenation of how to implement this in the
bank. Think of it as a manual for the club. this manual should contain
every thing, in a way that it would be ready to start it up I mean to 
say, every department in the bank should know his role
CSA role 
IT role
Sales role                       ID 548890
Advertising role etc
your quick answer is higly appreciated

---

Clarification of Answer by guillermo-ga on 02 Aug 2005 11:11 PDT

Hello Chanteur,

Thank you that you liked my answer.

Now, let's see how we can work out your need for further information.

I found it fine to outline a presentation for your interesting project
for the fee you offered. If you had asked for a manual for the
complete operation from the beginning, I would have kept off this
question, since a complete manual is a complex project that requires
in-site analysis and the active participation of the departments
involved. In other contexts I do provide consulting services for tasks
like that --not through Google Answers, of course, according to their
policies. However, you wouldn't find a three figures fee for such a
consulting.

That said, what I can offer to you within the frame of your question
is a brief outline for the main functions of the process for the major
organizational units. Please let me know your thoughts.

Regards,

Guillermo

Hello Chanteur,
I like  Guillermo-ga's presentation, but since first reading your
question, I have been asking myself if the idea of a club is all that
good.
I hope that you will not be personally offended by my questioning it.
Please let me explain:
Guillermo with his experience has outlined what would be necessary. 
Perhaps this can be simplified, but it still would seem to be quite an
administrative project for a newly established bank, and the system
would have to approved and organized, tax questions settled before you
could start to present it to "club" members.

Club members:  I can very well imagine that in some communities,
people might  find the idea distasteful that a friend or fellow
employee gets a finder's fee for recommending a new bank  - especially
a superior employee.  Also, employers may not like the idea.
The necessity for having a method of knowing who recommended a new
customer will make the system apparent  - maybe not immediately, but
eventually.

This may not be the case where you are.  If it were, however, this
would not be good for the image of the bank.

Since you have a budget for acquiring new customers ("a reward of
$30"), I would suggest using it directly for the new customers: 
advertising that new current and savings accounts opened will be
credit with an additional $10 or $20, and openly advertising that
customers who introduce another one will be credited with an
additional amount, and maybe a higher amount for a new customer that
takes a loan.
(As an ex-banker, I see a problem with this:  the credit decision may
go against the proposed new customer, upsetting the expectations of
both persons and making the bank responsible in their eyes;  and the
borrower may feel that his interest payments are covering his friend's
bonus.)

There should be a time limit for such an advertised offer, of course,
based on your budget, but a time limit will also increase interest.

Another thought:  providing an internet cafe for customers, but again,
this is entirely dependent on your local surroundings.

To repeat, I hope that my words can be understood as an objective comment.

With regards, Myoarin

Hello Myorin and Chanteur,

I want to thank you, Myorin, for your opinion on my answer, and for
the comment itself. We don't know whether your concerns would get
confirmed if tested or not, but still I definitely believe that they
should be evaluated before implementing the project, and that, in that
sense, Chanteur will take them into account as a well intentioned
help. They are part of what I was thinking about when in the
introduction to my answer I referred to the need for "previous
analysis such as profitability, regulations and legal compliance,
market research, IT support, procedural implications, etc." before
deciding on the feasibility of the project.

Regards,

Guillermo

Thanks, Guillermo-ga. 
One has very mixed feelings when posting a comment that goes against
the question and a well-founded answer.
Regards, Myoarin

An alternative suggestion for consideration is to purchase "Gift
Incentive Catalogs" We found Gift Incentive catalogs to be highly
sought after with our employees.

Basically you purchase a box of Gift Catalogs, and hand them out as
rewards, or Employee Incentives. The Gift Incentive Catalogs have
items and photographs and descriptions along with a coupon, the
recipient mails n the coupon and shortly thereafter receives the gift
they selected in the mail. It makes record keeping much much easier,
no W-2 forms etc. I earned many of them so I know they work! We
purchsed different catalogs, The lowest leel catalog had gifts the
employee could select alued up to around $25. The next catalog up went
for around $50 - $75.

Here are a couple links-
http://www.cataloggiftplan.com/
http://www.incentivelogic.com/catalog/browse.m

I googled the words
Employee Rewards Gift Catalog

Roxrox-ga, 
I hope chanteur-ga finds your comment.  It looks like the round wheel,
instead of a newly invented four or five sided attempt at one.  :-)
Myoarin