Business Update Webcast: Growth through Speed and

Business Update Webcast: Growth through Speed and Innovation
July 30, 2009
Agenda
• Our Commitment
Sasan Goodarzi, President • Key Insights: Small Business
CeCe Morken, EVP
• Trusted Product Roadmap CeCe Morken
• Driving Deposits: Turbo Tax for Online Banking
Lou Anne Moody, VP of Key Accounts
• Client’s Perspective: Design for Delight
Cindy Huntley, Heritage Bank
• Accelerating Growth: Net Promoter Score
Lou Anne Moody • Driving Online Channel Growth
Anne Swank, Director of Marketing Programs
• Bottom Line Results
CeCe Morken
• Q&A
2
The Only Way to Grow is Through Speed and Innovation.
3
It matters now more than ever… Complex environment requires an offensive strategy
Consumers
Small Business
Commercial
Financial Institutions
Asset Quality Declines
Double digit unemployment
Increased self employment
Decreased confidence
Decreased Net Worth
Increased Personal Savings
Financial Management will
become mainstream
Decreased Sales
Decreased Earnings
Difficult Credit
High revolving credit cards
Co mingled personal and
business
Decreased Output
Decreased Revenue
Decreased Earnings
Difficult Credit
Increased complexity and
regulation
Earnings Pressure
Increased Loss provisions
Increased Regulatory Burdens
Focus on Deposit Accumulation
Focus on Efficiency
Focus on New Revenue Sources
Save Time and Money
4
Contribution per Relationship
Our Commitment to Speed and Innovation
Solving your customers critical financial management needs with ease….better that nay alternative so they buy more and tell their friends
5
20% improvement in customer profitability NP 10 pts better than any alternatives
Key Insights: Small Business
CeCe Morken
Leverage the full complement of Intuit resources…
The Intuit Future of Small Business Series
• Small Business United
• Intuit Labs
•
7
Opportunity Knocks: Top 10 Small Business Trends
1. The recession drives SB innovation….SB will focus on cash flow, cost Small Business
Decreased Sales
Decreased Earnings
Difficult Credit
High revolving credit cards
Co mingled personal and business
containment, customer retention and survival…which will lead to a focus on productivity, increasing customer value, product and process redesign….innovation will create new opportunities
2. Government will play an increasing role and SB will need to stay abreast of policy and program changes and their impacts
3. Global infrastructure spend …$850B recovery package will see increased federal spending either directly to SB or indirectly as they supply larger firms
4. Number of SB firms will increase in 2009 due to job losses and limited hiring… it is easier and cheaper now for SB formation
5. SB globalization will temporarily slow
6. Demographic trends…baby boomers retirement problems will lead to SB formation
7. Gen Y will turn to small business…as more entrepreneurial especially with limited employment options
8. Mobile computing will continue to be strong, notebooks have passed PCs, navigation services will have an impact on SB
9. Cloud computing continues to be strong as a lower source of costs
10. SB will expand online marketing tools because they are cheaper and enable DIY marketers
Source: Small Business Labs
8
Small businesses in the U.S. have a combined revenue of approx. $7.4T and employ 77M people
Focus on the owner, not just the business
Owner’s net worth
*Includes ~73K small businesses with revenues between $10mn‐20mn for which owners’ net worth not available
Source: Informa 2006
Save small business owners time and money
Improve SBs bottom line by 20% to help them achieve their dreams
Save Time
Save Money
Time (% of time spent in back office)
Money (% of spend by business1)
Track expenses
Insights
HW/SW
Financial Reporting
Budgeting / forecasting
Accounting
Get help from advisors
Office supplies
Other2
Marketing, printing
Mortgage, rent
Collaborate with accountant
COGS
Bank fees
& charges
Find/Manage accountant
Money Out
Utilities
Fix/Maintain the books
Tax preparation
Fuel, travel, auto
Find/Manage Vendors
Enter bills
Manage & Pay Bills
File / archive info
Services2
Money In
Create proposals/estimates
Create / send invoices
Get paid / deposit checks
Manage receivables
1)
Spend analysis based on 10,000 QBO SB represents SBs ; excludes some industry specific expenses (e.g., royalties)
2)
Other includes misc expenses, bad debt, donations, education & training
3)
Services includes accounting, bookkeeping, legal services, consulting, other services
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Salary
Taxes &
licenses
Insurance
Offensive Playbook: Small Business
1.
The time to go after this market is now.
– Increased fed spending
– # of firms increasing in ’09
2.
Refine your marketing strategy…
Think about the owner and not just the business
3.
We want to help.
– Leverage the full complement of Intuit resources
– http://about.intuit.com/futureofs
mallbusiness/
11
Trusted Product Roadmap
CeCe Morken
Saving time and money for your consumers and businesses… to grow your business
•
Solutions for Consumers, Businesses and Shared Services
– Usability Enhancements
– Adoption and Active Use Enhancements
– New products and new features
•
Summary of Solutions
•
Features and Benefits
•
Resource Planning
13
Driving Deposits and Accelerating Penetration:
Turbo Tax for Online Banking
Lou Anne Moody
TurboTax Integration
Securely pass account data for refund direct deposit
Ensure security and privacy regulations are being met Save time in filing taxes: TurboTax imports personal information from IB
15
Save time in filing taxes access data from prior year’s TurboTax returns
Creating significant impact with your customers/ members
TTOB research demonstrated opportunity for financial institutions to:
33%
8%
No
33%
•
6%
6%
No
94%
Yes
Strengthen relationships
– 68% said attitude toward FI was “extremely favorable” because FI offered TTOB
•
Recommend your financial institution
– 47% more likely because FI offered TTOB
•
Drive deposits
– 94% of TTOB users deposited IRS refund with sponsoring FI
– Average IRS refund = $2,683
16
Percent of TTOB users who deposited IRS refund with sponsoring FI
Use aggressive marketing to help drive adoption
340 %
TTOB FIs with Full Marketing had 340% Higher Adoption
Moderate
Full Marketing
Triple EU penetration rate because of aggressive marketing (in‐branch, 3 emails, large home page banners)
17
Offensive Playbook: Turbo Tax for Online Banking
1.
Learn more about TTOB
– Contact your Relationship Manager
– Product Roadmap
2.
Watch for your opportunity to sign up
– September
3.
Prepare for end user launch
– Late Fall
18
A Client’s Perspective: Design for Delight
Cindy Huntley, Heritage Bank
Sasan Goodarzi
Accelerating Growth: Net Promoter
Lou Anne Moody
Drive profitability through improved customer experience and increased loyalty
•
Studying your end users – “How likely are they to recommend you to a friend, family member or colleague?”
– What are the key drivers?
•
Intuit best practice
– Central to our growth strategy
– Over 80% of new sales for Intuit attributed to word of mouth. •
Recent Pilot Program exceeded expectations
– “Wildly wowed”
– 4/4 would definitely participate again. •
21
Expanding the program to you free of charge
Get ahead of the competition…
Overall DI Financial Institution Net Promoter scores very good and ahead of Wells Fargo
How likely are your to recommend (FI ) to a friend, family member or colleague?
Offensive Playbook: Net Promoter
1.
Get ahead of the competition
– How loyal are your customers?
– Where can you improve?
– How do you stack up against other financial institutions?
2.
Let us do the work… – No cost to you
3.
Contact your Relationship Manager TODAY
– Sign‐up period ends soon
23
Driving Online Channel Growth
Anne Swank
Marketing Programs Drive Adoption & Active Use
Our goal: create more active users for your FI, driving greater profitability
Loyalty
Acquire
Convert
Grow
Prospect
Customer
Active Customer
Best Customer Referring Others
Participating clients have seen 81% and 130% user growth in last 2 campaigns
25
Delivering Significant Results
“Even though we have lots of bill pay users already – we were still able to increase penetration by 43% during 2008! The only online banking marketing campaigns that we executed during this time were through Digital Insight Growth & Retention Services, so this growth is truly due to the onboarding and quarterly GRS campaigns we participated in.”
‐ Katrina Russell, Business Development Officer, GECU
26
Building on success to expand programs
• Expanding Onboarding:
− FinanceWorks − Turbo Tax Fall 2009 January 2010
• Future Quarterly Campaigns:
– Quick Spin Instant Win – Boomerang Bucks – Super Sleuth Decoder
– Bust the Bill Stack
– TurboTax September ‐ October 2009
December ‐ January 2010
March ‐ April 2010
June ‐ July 2010
Tax Time 2010
Success in the online channel impacts the bottom line
27
Offensive Playbook: Adoption and Active Use
1.
Learn more about our programs…
– http://diclientgateway.com
– Contact your Relationship Manager
2.
We want to help.
– GRS Adoption & Active Use programs work
– We fully fund and deploy these programs for you
3.
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Take advantage and sign up today!
Bottom Line Results
CeCe Morken
What’s the bottom‐line impact of increasing relevance in your relationships?
$$$$$$$$
$$$$$$
$$$$$$
$$$$$
$$$$
$$$
$$
$
All customers
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Avid users of personal Avid online and bankers
business accounting
Capturing the PFI Aggregation position
of the fragmented wallet share
Increasing services to small and commercial customers
Capturing tax relationship
Expanding Relevance
Process to achieve outcomes…
Objective
Process
Outcome
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• Measure the impact of integrating financial management with the financial institution on contribution per relationship across segments and time
• 5 Financial Institutions transactional, balance, demographic and channel data
• Assessing the impact over 3 time periods including base line data
•
•
•
•
Contribution per relationship changes by lever
Impacts by generation , geography , financial and educational status
Impacts by current level of relationship
Impacts on channel use and engagement
Questions?
32
Offensive Playbook
1.
Organizations who proactively leverage speed and innovation in this environment will be leaders of the future. 2.
Opportunities exist now.
3.
We want to help.
–
–
–
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Solutions
Processes
Insights