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