Successful SME Banking

Successful SME Banking

A wide-ranging blog series covering the many and varied aspects of successful SME banking and financial services, in general. The GBRW team will regularly update this blog with posts on some the successful approaches used and key lessons learned over many SME banking and finance assignments around the world.

Strategic segmentation of the SME banking market

Strategic segmentation seems a simple enough concept, but often banks can tie themselves up in knots over it. For banks used to serving large corporate customers in a relatively thin market, each customer can tend to be a segment of one. However SMEs are a large and heterogeneous market, and it's important to have a systematic approach to differentiating between clusters of customers based on the distinct risk-reward criteria that are important to your bank.

It's also important to distinguish between a segmentation strategy and the qualification criteria for different relationship and service models that forms a key element of the Customer Value Proposition (CVP). The segmentation strategy should drive the definition of the CVP, rather than allowing the CVP to be driven by competitors.

In upcoming posts we hope to explore lots of interesting aspects of strategic marketing to SME customers by banks. In the interim we have embedded a SlideShare presentation to introduce some of the key principles of strategic segmentation for the SME market from our perspective, with a view to 'setting out our stall'.

If you liked this post you might be interested in GBRW's 'SME Banking Customer Relationship Management' training course, from GBRW Learning.

Training Course: SME Banking Customer Relationship Management

This course is intended for those interested in how to develop and deliver a Customer Relationship Management based approach for SME banking customers. It aims to show delegates how to use SME customer relationships to underpin the Customer Value Proposition and to sustainably drive customer loyalty and profitability.

Download course outline »