ctions / SAVING
Employee Saving: A three step sales strategy Dedicated solutions at every level
NSWERS / experts
Social networks: a new working tool?
Joint interviews with the JV SBI MF, the ICICI network, the NH-CA JV and Crédit Agricole’s holding group CASA
nalysiS / stratEgY / marKETS
/ The 1.5 Leverage product: a winning combination / The Student Challenge: a new generation of client relations
assets_AMUNDI NETWORK PARTNERS NEWSLETTER No. 3 / juNE 2012
his third edition of Assets is dedicated to new techniques in communication and marketing. We would like to thank Mr JeanLuc Catherine, Deputy CEO of Crédit Agricole Nord de France Regional Bank, for providing us with an editorial, enlightening us on the cutting-edge marketing strategy they have put in place.
The Nord de France Regional Bank has sought to be a front-runner in emerging communication channels, recruiting talent equipped with the necessary experience and intuition from the internet and social networking world. We have been investing in innovation since 2009 and as a result now have the largest fan-base of all Regional Banks, rivalling even leading national banks. Developing version 2.0 of the client relationship
By integrating social marketing into our overall strategy we have realigned the approach of the bank, gradually moving the
“We have sought to be a front-runner in emerging communication channels.” focus away from products in order to be more centred on the client. The Bank’s combination of expertise in both the interpretation of CRM information and the effective application of this CRM intelligence, allows us to carry out powerful online actions, particularly via social networks. The reliability of this client information base is key to building our market intelligence, which in turn benefits our clients!
Jean-Luc Catherine Deputy CEO CRCA Nord de France
a ctions / SAVING
With over 35 billion AUM, equivalent to 40% of the entire French market, Amundi is a leader in the industry of employee saving, employee share schemes and diversified asset management. Its role is to help employees build their savings in the most favourable fiscal and economic conditions, with the financial and infrastructure support of the company. Overview of a pragmatic and effective marketing and sales methodology.
O One target: Businesses reached either directly by responding to RFPs, or via our partner networks LCL, Crédit Agricole, Crédit du Nord and Société Générale. One aim: building a trusting relationship with our partners.
The active animation of retail networks
Xavier Chevallier, Head of Marketing and Communication at LCL BEGF and Grégory Siesse from Amundi, describe their collaborative working relationship. In the pursuit of developing their employee savings business, the relationship between LCL and Amundi has evolved into a true partnership. The quality of LCL’s corporate clientele and their large market share for this segment, representing over €50M of funds, provides the ideal
opportunity for Amundi to increase its presence in this high potential, attractive sector. According to Xavier Chevallier, the professionalism of the Amundi collaborators and the quality of the processes put in place, have turned employee saving into a real asset, favoured by corporate advisors as a means of capturing client loyalty. The comprehensive sales and marketing processes developed by Amundi have made it a reference brand consisting of: - innovative products; - a team dedicated to LCL made-up of developers (supporting existing clients) and hunters (that support the advisors in their prospection activities); - branch reviews, resulting in a plan of action tailored to each advisor. This allows the corporate advisors to easily identify targets and to take the appropriate actions, thus increasing efficiency. The corporate advisors organise an initial meeting
A three step sales strategy
“Finding products that increase customer loyalty, offering them low risk, long-term products, increases the visibility of LCL advisors.” Grégory Siesse, Head of Amundi Corporate clients
“Our core premise is that a good collaboration should satisfy the interests of all parties.” Pierre Schereck, Head of employee savings at Amundi
introducing Amundi to the client and write this up in a report. The account is then taken on by Amundi which applies distinctive, innovative procedures (conference calls, webconferencing or visits) in order to work with the client. Accurate reporting (tables of activities and events carried out) keeps the bank up-to-date with everything that happens in relation to the client. The success of this partnership has been proven by excellent results and these continue to improve. Amundi regularly visits LCL to supply it with the latest news (regulatory, fiscal etc.) and also organises internal seminars on the evolution of products. It offers training for the sales teams and collaborates with them to organise client events in order to reinforce their privileged relationship with corporate clients. LCL for its part promotes Amundi’s employee saving business on its website,
Xavier Chevallier, Head of Marketing and Communication, LCL BEGF*
Amundi: €35Bn assets under management, more than twice that held by the industry’s No.2, more than 4 times that held by its No.3 and more than 8 times that held by its No.4.
Click here to see the last retirement pack that was produced by Amundi to promote its products among businesses.
providing promotional product campaigns on its homepage, direct links to the Employee Saving website and access to the spec sheets for their products. Finally the network advisors are driven by annual quotas for signing new clients and in recognition for the business they have brought in throughout the year, the highest achieving candidates are put forward to win awards. Actions carried out in the corporate sector
The company plays a significant role and signs a partnership agreement directly with Amundi. Its total backing is essential which means convincing, not only the company representatives and managers but also the union representatives and staff, of the benefits and desirability of such a collective agreement. Amundi’s success will depend on the level of conviction and involvement shown by the company and the effort invested in ensuring that employees perceive the scheme in the best light. Of course Amundi is on hand to ensure that the company has all the means and expertise
Pierre Schereck, Head of Amundi Employee Saving and Socially Responsible Investment (SRI), in an interview with the economic journalist Jean-Marc Sylvestre. necessary at their disposition to do this, providing pedagogical documentation adapted to the company brand. Amundi seizes every opportunity to create positive “buzz”, for example using the creation of the “employee saving barometer” as an opportunity to organise conferences and events, inviting both existing and prospective clients. Regular presentations for different companies allow Amundi’s corporate team to promote a wider range of services.
A direct relationship with the client
The third actor in this 3-way relationship is of course the employee, who benefits from a package especially tailored to his or her company. In this case Amundi’s primary objective is to meet the needs of the employee, working with the company to offer them a clear, complete and easy to understand offer, through a comprehensive set of communication channels: Mail; call centre; internet site; and mobile app. These different tools can
40% Amundi’s share of the Employee Saving industry.
then be used to carry out simulations, to help them better evaluate their needs and manage their accounts. Amundi also visits the companies in order to explain to the employees in person how employee saving works and answer their questions with regards to all the supports available to them to facilitate the investment process. * LCL BEGF: Banque des Entreprises et de la Gestion de Fortune (LCL Corporate and Wealth Management).
Click the star to see the interview with Pierre Schereck.
Amundi corporate clients.
employees hold funds managed by Amundi.
The Employee Saving market in France • Market size: €85.2 Bn, of which €5 Bn invested in PERCOs (retirement funds with fiscal advantages) • Market evenly split across: – Employee share schemes with the regulatory, fiscal and social structure to encourage the purchase of company shares. Applies to all employees of a company whether or not they reside in France.
Strategic point for the company (free issue of shares to employees and stock options). - Employee contributions to mutual funds, for employees resident in France only. Source Amundi, as of 2nd March 2012.
a NSWERS / expertS
With 4 out of 5 internet-users worldwide visiting social networks and blogs, common ground-rules for businesses wanting to partake in this new media phenomenon have been established but their context and use differ among countries. SBI MF, Amundi’s asset management joint venture with State Bank of India, and their retail bank partner ICICI compare experiences with Amundi and NH Bank’s joint venture, NH-CA Korea and Credit Agricole Group’s holding company, CASA France.
Social networking sites: a new working tool? Joint interview on this 2nd generation of digital media
Are SNS communication channels important for your industry ? SBI MF: India is a young country with a population average age of 25 which makes SNS a major communication channel with huge potential. Six or seven asset management companies have put in place some kind of online presence for their company, either in the form of a Facebook page, a twitter account, or a Youtube channel. Currently our most successful competitor is Reliance Mutual Funds who have so far managed to attract 356,000 Facebook fans and counting. NH-CA: Basically Korea is a good test bed for online marketing thanks to high rates of internet coverage and smartphone penetration. Web communities and portal sites have become a good infrastructure for sharing investment information. For instance, a couple of websites provide objective evaluations of all the mutual funds in Korea, including relevant information on the funds. Major fund distributors, mostly big banks and securities companies, have also developed sophisticated internet banking sites where clients can access services tailored to meet investor needs.
“Social media hold considerable influence.” Abhishake Mathur, Senior Vice President Financial Planning & Service, ICICI Securities
“Our aim is to make them educated on Fund Management.” Srinivas Jain, Chief Marketing Officer, SBI Funds Management
What role does this channel play in your marketing strategy? CASA: In France social networks are the main arena for the exchange of ideas and opinions. Therefore, it was crucial for Crédit Agricole S.A. to be able to tap-in to this conversation and to make its own voice heard. Web-users hadn’t waited for us to initiate these dialogues but we could help fuel them and use them to create new relationship opportunities. The “community manager” is central to this, monitoring the e-reputation of the Crédit Agricole brand across all the networking sites and summarising the key trends in weekly reports. The team also animates the communities and promotes the brand by distributing information on the group
(financial results, career opportunities, sponsorship, corporate social responsibility etc.) As a result, this creates a unique medium for discussion, becoming a real lynchpin in Crédit Agricole’s communication strategy. ICICI: We currently use social networking largely as a listening tool: actively looking on all prominent social media sites for trends, comments and leads with respect to our business. However, we also use it for communication purposes, with a personal finance page on Facebook, ICICIdirect Money Manager, which we use to engage with customers and the community at large on issues pertaining to financial planning and investment planning. In any decision making process, the first stage is “creating a disposition” or “thoughts” around a subject. This is followed by evaluation and action. Because social media is being used extensively by many to express their thoughts, this channel has great potential to engage with an individual or a community at the early stages of their decision making process. Even for those individuals who do not actively communicate themselves, the comments by others induce a thought process.
Is the number of times “Crédit Agricole” appears on the web everyday and is flagged by Digimind, whilst Twitter will register on average 150-300 mentions per day.
150 WHAT AUDIENCE are you trying to reach through THIS CHANNEL?
What techniques do you usE to captivate these audiences?
CASA: We communicate at a corporate level, that is to say not targeting clients in the narrowest sense of the term but several audiences: public opinion generally, clients, prospects, shareholders, opinion drivers, partners of the group, even students etc. in short, all those with some kind of a stake or potential stake in Crédit Agricole.
CASA: Twitter is a unique medium. It allows information to be communicated in an informal way and very rapid response to possible attacks on the company. What is more, Twitter is an on-line communication channel which gives us access to the “influential leaders” of the media i.e. journalists and bloggers, whose opinions are read and shared by hundreds of people. We launched our first campaign via this media recently. It was a successful and enriching initial experience: a dozen or so “digital influencers” attended one of our events and for the most part gave a positive appraisal in their blogs. In quantifiable terms, over 500 new subscribers joined our “corporate” Twitter account (www.twitter.com/1creditagricole) between November 2011 and the present day.
NH-CA: In Korea, much SNS usage is for personal communication, with any investment information usually considered by users as advertising. Unlike investment portals where questions and answers are exchanged, NH-CA’s twitter account has acquired few followers. This led us to concentrate our online marketing efforts on major, investment-related websites, visited by people specifically looking for investment information.
“Savings websites are our main target.” Seongsu Lim, Retail Marketing Department, NH-CA Asset Management
“It is also important to hold sway with the leading influencers on Twitter.” Denis Marquet, Head of Communication, Crédit Agricole S.A
SBI MF: As we have such a large, young audience, our aim is to educate them on Fund Management for example via a Youtube channel with educational videos. We are in the process of launching a Facebook campaign called Start by Information (SBI), which again has the aim of educating this segment by broadcasting information on mutual funds. However, in order to do this, we first need to increase the number of fans and traffic to the SBI MF Facebook homepage. That is how we arrived at the idea of attracting web users with more engaging, general knowledge facts unrelated to banking, for example “Who was the creator of jeans?” and becoming the go-to-guys for this kind of information.
a nalysIS / stratEgY / marKETs
Since its inception in June 2009, NH-CA’s 1.5 Leverage Index Fund has been a huge success in Korea. In large part this can be attributed to the fund’s unique characteristics. However, online marketing activities have also been a significant contributing factor, with online subscriptions making up 22% of the fund’s total AUM as of end of 2011.
The 1.5 Leverage product: a winning combination What is the NH-CA 1.5 Leverage Index Fund and how does it work?
The fund is a simple index fund that seeks to provide 1.5 times the KOSPI 200’s daily return, utilizing KOSPI 200 stock price index futures. When daily 1.5 multiples are accumulated this creates a compounding effect. In bullish periods this makes the fund rise by a multiple greater than 1.5, whilst in bearish periods the fund declines by less than 1.5, with the compound effect working in reverse. From simulations with various multiples NHCA concluded that 1.5 was the optimal multiple for the Korean stock market, working especially well during a bull market or with regular savings plan investments. Is there any specific reason why NH-CA launched its online marketing?
The mutual fund market is al-
Woo-il Jung, General Manager of Gangnam Private Banking Center, NH Bank
Seongsu Lim, Retail Marketing, NH-CA Asset Management
ready flooded with around 800 domestic, equity based funds. Although the 1.5 Fund had a good initial performance **, retail investors paid little attention to this unfamiliar product. We had to find a way to communicate with retail
clients more directly so we started to provide performance content to a web community and a portal site daily, whether the fund’s performance was good or not. Then, people started to post questions and so we also started answering these every day. This prompted more traffic to those sites and drew people’s interest to the fund.
* KOSPI 200 consists of 200 companies selected from those listed on the KOSPI and is used as the underlying index for futures and options. ** Past performance is not an indicator of future performance - this fund represents a risk to capital.
What have been the results of NH-CA’s online marketing venture?
First of all, the 1.5 Fund has become the biggest online fund in Korea. The second player is far behind us and our fund’s lead continues to grow. Using our online advantage as leverage, NHCA launched a micro-site, dedicated exclusively to the 1.5 Fund. Its purpose is first, to create and promote interactive communication with clients; and second to
70% only of holdings need be allocated in the fund to get 100% equity exposure returns, allowing for greater diversification.
expand its content to smartphone users and fund-related online communities. In time we expect it to become a key online hub for investment related internet communities.
“Although the 1.5 Fund had a good performance, initially retail investors paid little attention to this unfamiliar product.”
Click the star to watch the product’s video presentation.
What has been NH Banks’ experience of the 1.5 Fund? “We find the product useful for clients investing in equity. Clients can be exposed as if 100% invested in equities but allocate only 70% of their total investment in the fund, whilst the other 30% can be used for liquid assets like MMF or deposits. This allows the flexibility to adjust the portfolio according to market evolutions. In addition, the fund is easy to explain
as it is a simple index product which follows market movements. Although the fund is more volatile than pure index products, we have advised that clients should turn their investment into a virtuous cycle, helping them take realized profits from the fund and reinvest.”
On 7th February 2012, Crédit Agricole Nord de France launched its latest Facebook campaign, “The Student Start-up Challenge”. In partnership with local associations dedicated to young enterprise, the bank conceived this concept as a means of promoting entrepreneurial spirit among students in the region.
A new generation of client relations “The Student Start-up Challenge” The challenge: to promote the bank’s image among young people and to enhance its reputation as a partner of creative new businesses. Going viral and increasing visibility
Within three weeks, the bank had received 54 start-up proposals, submitted by students on its Facebook homepage. Ten have already presented their business projects to a jury-panel of professionals in the hope of being awarded a prize of €5000, €3000 or €2000. In parallel, the public voted via Facebook (voting closed on 19th May) to award a prize of €5000 to their favourite of these entrepreneurs, with online videos of the candidates presenting their project to help them make their selection and a mobile app for iphone and android to easily cast their votes. In addition, both 1st prize winners from the professional and public votes will have access to a loan from the bank at a preferential rate, subject to their financial plan satisfying requirements.
as a learning experience and opportunity to develop their understanding of this new media. This allowed them to define the four pillars on which their strategy is founded: version 2.0 of the client relationship; brand management; new-client prospection; and knowledge of both existing and potential clients. The overriding objective is to build a strong community, sharing the values of the bank and with a regional identity.
are potential clients! Therefore through The Student Challenge a lot of students get to discover a new side to the bank that shares their values and via a media that they are familiar with: Facebook. As a matter of fact social networks integrate well into the bank’s overall strategy which is centred on the client.”
“Our objective is to use this media to be closer to our clients, turning them into actors and content creators. What is more, it is a powerful business tool as 40% of our fans
Social marketing: at the heart of the strategy – the client
Via these kinds of campaigns the Nord de France Regional Bank has built-up its experience in the “social marketing” field. Many methods have been tried and tested since the launch of their Facebook page in 2009. The first year served
“After a week 5,000 votes had already been registered and since the start of the campaign the Student Challenge homepage has been viewed 500,000 times.”
David Zielinski, Head of Multichannel Marketing at Crédit Agricole Nord de France Regional Bank and a pioneer in the use of social networks in the banking industry
Click here to see The Student Challenge Facebook page and the Youtube videos of the candidates making their presentations. Two candidates from the “Student Challenge Initiative” presenting their project for a website helping artists try to start their career.
a T A GLANCE
Chinese and Greek delegations: Sharing Amundi’s expertise Last April, Amundi organized a training session for ABC-CA, our Chinese Joint-venture with Agricultural Bank of China (ABC). A wide range of topics were covered: the AM-network partnership, client segmentation, governance and the product offer. To conclude there was a visit to a local bank branch. Amundi was proud to receive for the second time a delegation from Eurobank, Greece, who met with strategists and product specialists from our Paris teams. Some of the topics presented included Amundi’s perspective on fixed income and equity markets, as well as insights into two of our specialised areas of expertise: volatility and emerging economies.
Amundi, French joint stock company (“Société Anonyme”) with a registered capital of €578,002,350 and approved by the French Securities Regulator (Autorité des Marchés Financiers -AMF) under number GP 04000036 as a portfolio management company, 90 boulevard Pasteur -75015 Paris- France – 437 574 452 RCS Paris. The editorial board, composed of Marie-Pascale Bonhomme, Éric Dubois, Licia Goldoni, Victoria Pateman, Mylène Renier-Schram and Florence Terris, would like to thank all the people who contributed to this edition. Crédits: Fotolia, Getty images. Design and production: (AMUN003) This material is provided for information purposes only and does not constitute a recommendation, a solicitation, an offer, advice or an invitation to purchase or sell any fund, SICAV, sub-fund, (“the Funds”) described herein and should in no case be interpreted as such. This material, which is not a contract, is based on sources that Amundi considers to be reliable. Data, opinions and estimates may be changed without notice. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material.The information contained in this document is deemed accurate as at June 2012.