Harvard Fiserv Case

Topics: Marketing, Electronic commerce, Payment systems Pages: 6 (1154 words) Published: April 24, 2013
Fiserv Case
Marketing stretegy MBA 2012-2013 -  -  -  -  -  Valentino De Girolamo Eleonora Stentella Matteo Turchetti Vincenzo Di Lecce Filippo Antonio Pisano

Goals to reach
•  Make a good market segmentation to define how to invest and to which customers •  Understand consumers perceptions and modify their approach to e-billing •  Implement an effective communication strategy without increasing the budget and maximizing the results.

Customers definition
•  Direct customers : billers and banks •  Undirect customers: end users

Market potential and prevision
We estimate that the realistic market potential, in USA 2009, is $ based on the fact that the onliners population is 86M •  € 60.200.000,00 (70% of “online consumers”) use electronic bill payment •  less then 20% use e-billing to watch bills (€ 17.200.000,00) •  frequency (recive bill): 10 times a month MARKET POTENTIAL AS A WHOLE è OUR FUTURE GOAL: Growth scenario: comparison between electronic payment systems and e-billing penetration. Trends assumptions according to first possible scenario after the new customization strategy. 120% 100%

e-billing penetration


80% 60% 40% 20% 0%
e-billing penetration after new strategy (assumption of minimum scenario) electronic bill payment penetration










10.320.000.000 $

Identification of clusters

Managerial evaluation of clusters
range 1-5
E-Savvy Maximisers Self Improvers Convenience Seekers Desperates Paranoids


5/5 5/5 4/5 4/5

3/5 5/5 5/5 5/5 18/20

4/5 4/5 4/5 2/5 14/20

2/5 2/5 4/5 3/5 11/20

1/5 1/5 4/5 3/5 9/20

1/5 1/5 4/5 1/5 8/20





Targeting the clusters
•  E-Savvy
-  -  -  -  ( 19,7% market share of bank transactions ) Identified as possibile early adopters and pioneers Already users of financial software Seek fast and efficient ways to manage bills Main Implication: less costs in switching from paper billing to e-billing, high growth opportunities ( 27,1% market share of bank transactions ) Comfortable with new technology Highest percentage of Market Share Main implications: highest growth opportunities, identified as possible market influencers.


We identify 3 effective segments of market for our business: E-Savvy Planners, Maximizers, Self Improvers.

Percentage of clusters over total onliners population
Paranoids Convenience Seekers Maximisers Desperates Self Improvers ESavvy

•  Maximisers
-  -  - 

8,90% 12,30% 16,90% 13,70% 27,10% 20,60%

•  Self-Improvers
( 13,3% of bank transactions ) -  Do not believe they have a good system for bill management

Communication problems to be solved according to focus group QUESTIONS •  “Who sends the e-bill? The bank or the company I have to pay?” •  “Can I sign up for e-billing through my bank or do I have to ask alla the individual companies?” SOLUTIONS •  All the campaign will be driven by banks and billers using e-mail or outbound marketing trougth call centers. •  Customers can subscribe the service by just signing an e-mail contract with the bank. •  Show the economic benefit of ebilling increasing also the price of paper billing in order to increase the spread between the two. •  Create a specific price for mix end-users to reduce time of conversion.


“What exactly is the benefit of ebilling?”

COST ANALYSIS: all paper end users
•  •  •  Total onliner population: 89M E-billing mix users (20% of tot. Onliners): 17,8M Paper bill cost each bill 1,25 $

Assumption: We consider just the variable cost according to the Case. We estimate the markup must be at least 15%, the minimum value at which we could cover the risk and parts of the adverstising cost (not yet defined in the case but important for future evaluation). •  •  •  Bank/billers tot unit cost per end-users a month: 12,5 $ Minimum monthly price for...
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