Banking & Financial Institutions
- Leading European private bank
- Implementing a Pricing Excellence Program to boost revenues
Situation and Objectives
- Main focus was the "self-directed" business where the bank gives advice only to the clients on how to invest their money.
- While a typical price list in this area consisted only of tables, small-print and numbers, Simon-Kucher shifted its focus to value.
- Value offering and communication: Simon-Kucher packaged the services into bundles and created a brochure that describes to offering.
- Value pricing: Completely new pricing approach by introducing a fixed annual fee for each of the three packages.
- Value selling: Changing the bankers' mindset and prepare them for selling the new offering and price model to their clients.
- In the first year, the project increased the bank’s annual revenues by US$55m per year. It was therefore rolled out in other areas as well.
- Given the positive results, we also optimized the bank’s foreign exchange pricing, discretionary business and credit pricing. These initiatives yielded another US$45 million of additional revenues.
- Revenue increase of 10%
- Profit growth of 30%