Industry
Banking & Financial Institutions
Company Profile
- Leading Scandinavian bank
- Market leader in home country
Situation and Objectives
- Introduce value-based pricing approach throughout whole retail banking organization, from product design to sales processes
- Create differentiated product portfolios to enable de-commoditization
- Enable sales force to compete on value before price
Approach
Results
- Carried out large value-based pricing pilot project in one country focusing on new product portfolios for (1) deposits and (2) mortgages
- Implemented a new holistic mortgage concept including new product innovations, new pricing, a new advisory approach and new ways of communication (e.g. interactive configurator)
- Introduced innovative differentiated saving accounts and carried out large training program to enable sales force to compete on value before price
Impact
- Successfully implemented “proof of concept” through pilot project
- Significantly increased margins by implementing value-based pricing concepts
- Large roll-out to several other markets took place after proof of concept
