Knowledge driyen -
ASSET IN ASIA
10
customer value
What's NewS Issue 8 August/September 1997
Customer
value
around
the table.
In the third round table discussion for our occasional series on insight into
customer value around the network, we ask Maarten van Alkemade (Rl-China),
Paul Beiboer (Rabobank Duta, Indonesia) and Roel van Veggel (Marketing,
Utrecht) how the concept is being tackled in Southeast Asia and how they
perceive the role of support departments at head office.
WNS: When you call on a customer -
specifically a customer in your region -
how easy is it to get across the customer
value message? 1 understand it has been
quite tough to convince many relationship
managers here that making money is only
one aspect of RI's banking style.
Pauklt is tough. Without generalizing, I
Maarten van
Alkemade
(Rl-China)
think it's fair to say that people here are
certainly relationship-oriented. They
appreciate the message we're sending: 'We
care about our relationship', 'We put our
customer first'. They like that part. But
they are also very much into the business
of making money. They will hardly
understand that there's actually a bank
out there that puts them first without
looking at potential financial gain in
advance.
Maarten: These people all understand
marketing, so they all say: 'Customer
value, yes'. But the average Asian
company is out there to make money; it's
all about making money. They accept your
story, but they don't believe much of it.
Paul: Don't forget that we're talking about
a region where, on average, companies are
growing 15 to 20 percent a year, and in
many cases that's a conservative estimate.
They're in a growth mode and in a major
money-making mode.
Maarten: The most obvious translation of
customer value is the fact that, in the end,
you're not there only to make money. But
you can combine those two things.
Clearly, you have to make money, to have
a win-win relationship with the customer,
and the customer understands that.
Pauklf customer value means you can
enhance their earning capacity, they will
agree with you. They hear it as: 'Can you
help me make more profit, or make my
company more efficiënt? If so, then let's
have a relationship.' You can talk about
high ideals, but what most customers in
this present environment are truly
interested in is pretty basic: making money
and building power. People are very, very
ambitious, not least for their kids.
WNS: But whatever happened to
traditional values? People are concerned
their own norms and values are being
engulfed by Westernization.
Maarten:The older generation is
concerned. The younger people have
grown up with fast food and CNN. Their
values are certainly changing and their
parents, grandparents, regret that. Just
look at Japan. Not so long ago, this was a
nation of workaholics. Today, the young
people say: Tm not working 12 hours a
day, then commuting for another four, 350
days a year. I want time for leisure and
other things.'
Pauk It's funny you say that after we've
just said that everyone is into making
money - clearly, young Japanese want a
good Standard of living, but they also
want personal space and time.
Maarten (laughing): Maybe we're talking
the 'Asian Dream' as opposed to the
'American Dream'.
Roel: Okay, you've said that customer focus
will be taken on board if it serves the client's
strategy. But what about the knowledge-
driven side? Does that make an impact?
Paukl think customers appreciate it. Other
banks are still in product-selling mode.
But, honestly, I don't think we're good
enough at providing the solutions or
anticipating needs. We're doing some of it,
but not enough - yet. We very much apply
the knowledge-driven element here. If you
can step into the client's world and be very
knowledgeable about their industry, how
they operate, how they operate in their
domestic market, what their world is like,
then they relate to you and you get the
business.
WNS: Do they believe you when you walk
in and say: 'We're not like other Western
banks, not hit and runners'?
Maarten: It's not a matter of whether they
believe you. It is more that they believe the
relationships we have with other
customers. In spite of saying that
traditions are changing, the Asian culture
is still very much relationship-based.
Personal contact, personal referral - that
counts here. If a prospect knows someone
who has benefited from our relationship-
orientation, then he will automatically be
interested. That is what convinces them.
We rely on word of mouth. That way, we
don't need to convince them, someone has
already done it for us.
Pauk We've just done this great palm oil
deal. Last year, these guys walk into the
bank and say: 'We've heard of you and
about your agri know-how. Would you be
kind enough to arrange a transaction for
us.' So we did. Another positive side to this
kind of deal is that our name will attract
other banks into the syndication. I know
they see our involvement as a kind of seal
of approval. It means the business is okay.
WNS: So if we had never decided for the
customer focus strategy, it would have
made no difference to our business here in
the region?
Maarten: Absolutely not - all I'm saying is
that because of the ways things are
organized in this part of the world, we
were already customer focused. For me,
that is natural. I don't think anyone would
believe you can run any kind of business
without it. What is new and what is
important is the knowledge-driven aspect.
I was very pleased to hear an intensive
course has now been developed to increase
F&A know-how. We call ourselves a
