Marketing Financial Services: Marketing Financial Services Presented by Doug Case & Leigh Bohmfalk Wells Fargo March 2003


About Wells Fargo – History : About Wells Fargo – History Since 1852 The history of Wells Fargo is the history of the American West Established as service company for prospect camps during the Gold Rush Coast-to-coast transport: Stagecoach! Storied in Hollywood


About Wells Fargo – Today : About Wells Fargo – Today Doubled in size via merger four times, most recently with Norwest $315 Billion in assets 130,000 team members 13 million customers 3,000 stores in 23 states #1 in small business lending, agricultural lending, home equity lending, online financial services


Wells Fargo Culture: Wells Fargo Culture Vision: To Be One of America’s Greatest Companies Goals: Grow Market Share, Revenue, Profit Focus Customer What are their needs What do they use What are their choices Employees “People as a Competitive Advantage”


Doug’s Background: Doug’s Background Wells Fargo USF MBA Marketing background Former owner of SF marketing agency Experience in Lifestyle marketing


Small Business Cash Management: Small Business Cash Management 1.6MM customers $28B in deposits


Wells Fargo Marketing Structure: Wells Fargo Marketing Structure Corporate Marketing Brand Advertising Marketing Research Consumer Collateral Consumer Merchandising


Wells Fargo Marketing Structure: Wells Fargo Marketing Structure Small Business Cash Management Business Direct Lines & Loans Marketing Communications Business Banking Other Product Groups


Marketing Communications: Marketing Communications Advertising Market Research Segment Collateral Merchandising Communications Public Relations Ethnic Marketing & Financial Services Programs


Store / Banker Channel Marketing: Store / Banker Channel Marketing Training / Learning & Development Liaison to Regional Marketing Management Program Communication Program Implementation / Development Sales Tools


Product Management: Product Management Product Management Rates & Fees Process Enhancements / Changes Systems Development / Changes Develop Offers New Product Development Product Collateral & Disclosure Acquisition / Retention Marketing Programs Channel Management (Store, Phone, Internet) Direct Marketing (Mail / Telemarketing) Product / Customer / Segment Analysis Segment Data Development


Regional Marketing: Regional Marketing Liaison to the stores Liaison to the Corporate marketing and LOB/SBU marketing Implement marketing programs Develop local / regional marketing programs Local advertising Facilitate Line Management decision making Pricing and product changes New product development New product introductions


How Decisions are Made: How Decisions are Made Factors to consider Competition Business Case ($) Strategic Fit Systems Complexity Regional Interest Competing Priorities Develop idea and business case


Key Areas of Net Gain Marketing Strategy: Key Areas of Net Gain Marketing Strategy Retention Cross-Sell Customer segmentation Predictive Attrition Model development Proactive Contact Acquisition Market dominance (market share/wallet share) Product / Pricing Competition


Case Study – Free Checking: Case Study – Free Checking What are risks of doing nothing? Shifting of market share Competitor(s) get bigger Wells Fargo gets smaller Loss of price-sensitive current customers Never get a chance to sell to new customers


Case Study – Free Checking: Case Study – Free Checking What are risks of competing? Loss of brand positioning Attracts low-value, unprofitable customers Price war – What’s next to be free?


Leigh’s Background : Leigh’s Background Wells Fargo since April 2000 USF MBA Financial services marketing background Semi-reformed “dot-commer” as well as traditional company experience


Wells Fargo Marketing Structure: Wells Fargo Marketing Structure Small Business Cash Management Business Direct Lines & Loans Marketing Communication Business Banking Other Product Groups Internet Services Group Business Internet Services


Business Internet Services Vision: Business Internet Services Vision To be the leading provider of online financial services to small businesses.


Small business website: wellsfargo.com/biz: Small business website: wellsfargo.com/biz Bank Online for FREE and Pay Bills Online Research and apply for financial products and services Access free tips to manage your business Access free tools to determine the best product


Marketing Goals : Marketing Goals Acquire new ACTIVE online banking customers Acquire new ACTIVE Bill Pay customers Cross-sell online services (such as cash management!) Retain existing online customers


Marketing Strategy/Metrics: Marketing Strategy/Metrics


Key Determinants of Campaign Strategy: Key Determinants of Campaign Strategy Business Goals Individual Product Goals/Seasonality Customer Profile Budget Channel Performance


“Online” Campaigns : “Online” Campaigns Integrated into overall campaigns across available channels: Keyword Buys Emails Wellsfargo.com Site Advertising Advertising within the Online Banking Session These campaigns are trackable via the same technology….provides instant results!


Keyword Buys: Keyword Buys


Sample Email Newsletter: Sample Email Newsletter Main Feature articles Economic & Market Outlook Online Banking Quick Hint


Wellsfargo.com Site Advertising: Wellsfargo.com Site Advertising


Advertising within the Online Banking Session: Advertising within the Online Banking Session


Slide29: DEMO of Tracking Technology


Thanks and Good Luck!: Thanks and Good Luck! Doug Case (415) 396-7845 casedr@wellsfargo.com Leigh Bohmfalk bohmfale@wellsfargo.com