Finding our market niche
survey results
The logic behind a market survey is perhaps obvious. At least, to gauge where
we are and how we're doing was the reasoning behind a recent initiative. This
involved consulting our customers for an entirely objective overview of a
successful relationship bank's most important qualifications. Here are some
major condusions which evaluate how we're faring so far.
Resounding results
Utilizing credit
Cross-selling focus
On track
Implementing conclusions
Tackling perceptions
il What'sNewS Issue 2 February 1999
The market survey, incorporating
frank responses from some 349 top
food and agribusiness (F&A), health
care and international corporate clients
in the UK, France, Germany and
Holland, encompassed all aspects of
commercial banking in Flurope.
Conducted by the external US-based
market research company, Greenwich
Associates, results are not only unbiased,
but are also, according to head
marketing Rabobank International (RI)
Roel van Veggel, 'very valuable.'
As Van Veggel observes, one of the
survey's conclusions was that RI
within the Netherlands is right on
track. 'Which came as no surprise,'
he continues. 'Historically Rabobank
is well positioned, known on home
ground, and seen as a leading
relationship bank within our chosen
niches. Where we do have a way to
go, is our international penetration.
Yet these results are also hardly
surprising. After all, globally we have
just begun. With our relatively small-
scaled operations it's always hard to
reach top tier positions with the bigger
companies in our focus areas, but the
outcome is promising. The survey results
are useful as a zero view, an instrument to
secure where we are in terms of
performance, to measure the market's
response and to determine future steps.
But all things considered, the overall
conclusion, at least within the countries
covered by the survey, is that we are
already reaching about one third of our
target market.' That such a relatively high
percentage has an active relationship with
RI is surely not bad for starters, although
Van Veggel also realistically concludes,
'we clearly still have some work to do.'
Another of the survey's conclusions was
the importance of credit as a product, lt
clearly states that customers, mostly in
the UK, value the strategie use of credit.
This was especially obvious in F&A
where over 60 percent agreed that the
amount of credit received influences the
decision to use the bank's services for
other products. In health care the impact
was a more modest 14 percent, but 58
percent of international corporates also
agreed credit was important. 'To both
enter into cliënt relationships as well as
strengthen existing ones,' says senior
relationship manager Robin Bargmann,
'the recommendation is for credit to be
offered as a strategie product. And this
means taking a proactive approach.
Within the regions analyzed - a strategy
also applicable to, say, North America -
we need to place an organized cliënt
management structure and professionaliz
it to effectively analyze and target clients
According to the survey, the relationship
between credit and cross-selling also has
great potential. 'Growth may depend on
credit to open doors for other products,'
continues Bargmann. 'A classic example
being foreign exchange. Many companies
allow the bank to sell if they commit to
credit support. Once we're in the door,
we can concentrate on cross-selling, on
providing integrated financial services.
But key to achieving that is to first be a
single product supplier, and that product
is credit. Once credit commitments match
cross-selling goals, clients will ensure a
high return on capital portfolio.'
A pat on the back is in order for being
knowledge-driven; clients unquestionably
appreciate it. Not content to settle for the
compliment, the survey recommends our
knowledge be developed further. 'It's fine
to claim to be knowledge-driven,' says
Bargmann, 'but customers want to know
what's in it for them. Knowledge should
be translated into added-value, tailor-
made financial solutions for their specific
needs. That is our future challenge.'
Not only were the survey results valuable,
global business managers are currently
thrashing out how to implement them.
Health care's Arnold Kuijpers says,
'in the past, credit opportunities
would naturally be grabbed. Now
instead we hope to concentrate on
actively targeting specific clients for
credit exposure. And health care
being a relatively young focus, we are
in a position to change our tack.'
F&A, being in another more
advanced stage of development, is a
slightly different ball game.
According to Peter Greenberg, 'our
F&A pan-European core marketing
push is aimed at strategie advisory
work in its various forms, including
advising clients on commodity price risk
management. Selective use of credit
should move us in that direction.'
As a monitoring tooi, such an
independent survey will be conducted
frequently, in fact next results are due
February 2000. 'Being the first in an
ongoing series, these results give us a
clear vision of where we stand now and
the direction we need to go,' continues
Van Veggel. 'It was based almost purely
on treasury products. Next time we'11
extend it to other services, such as M&A
and equity capital markets, which should
be up and running by then for clients to
comment on. As it is, RI outside Holland
is still perceived as a relatively small
player. Now we have a better idea of how
to tackle that perception.'
Robin Bargmann (left) and Roel van Veggel (right)
presenting the 'zero'issue market survey
