Red carpet treatment for privileged customers

Andi M. Sadat, Contributor, Jakarta

Although the national economy has not fully recovered, some businesses are thriving. The country's major banks are one example.

As noted marketing management expert Rhenald Kasali said at a seminar held by Bank NISP: "You shouldn't mope around or be drowned in pessimism caused by the news in the media. That will only make your competitors happy, as they will actively make the best of the situation. They are the optimistic type who can always find unique solutions even in the worst situation."

This optimism was further confirmed by the result of a survey carried out by business magazine Warta Ekonomi two years ago, which indicated that the country had premium customers with funds totaling some Rp 450 trillion. "This fantastic amount of money, owned by about 600,000 people here, is close to one-third of the money in circulation in Indonesia," said Agoes Soebektie, director of consumer banking at Bank Negara Indonesia.

The existence of super-rich customers in Indonesia has apparently triggered a special kind of service -- priority banking -- that is provided not only by foreign banks operating here, but also by most major domestic banks, such as Bank Negara Indonesia (BNI), Bank Central Asia (BCA), Bank Niaga, Bank Mandiri, Bank Danamon and so forth.

These privileged customers -- high net worth individuals (HNIs) in bankers' lingo -- are provided with specially designed products and services that are also extremely customized and personalized. "It's like royal treatment for kings and queens," said Lynna Muliawan, head of consumer banking development at Bank Niaga.

Personal bankers are also on hand to give them personalized professional service in a luxurious private room, not only for routine banking needs but to assist them as investment and financial consultants.

Bank Mandiri also throws in safety deposit boxes at no extra charge. Next to special interest rates for savings and deposits, this bank also provides them with a special card -- Kartu Bank Mandiri Prioritas -- as an identity card that entitles its holder to pampered treatment, not only at Bank Mandiri branches, but also in the executive lounges at most major airports in Indonesia. They are also given priority by airport handling services and special facilities at numerous star-rated hotels and restaurants. Free invitations to seminars sponsored by Bank Mandiri are also offered them.

Meanwhile, PrimaGold Banking, launched by Bank Danamon in August 2002, also provides similar services. Its personalized relationship officers are available in the bank's offices in every major city in Indonesia. Along with professional financial planners, they assist their clients in how to invest their money based on up-to-date financial information.

PrimaGold customers automatically get gold or platinum credit cards with an enormous credit limit. Specially high interest rates for deposits in rupiah and dollars are also enjoyed by premium clients.

Bank Lippo offers its privileged customers VIP banking. A combined balance for both savings or deposits and current account is set at Rp 200 million as the minimum for a customer to be included as a VIP client of the bank. Such customers are then given one-stop banking services in special de-luxe rooms, banking and financial assistance that includes investment guidance from relationship officers and credit cards (Visa Gold and Master Gold), that provide a huge credit limit without annual fees. Their Visa Electron cards for cash withdrawals at automated teller machines also carry higher withdrawal limits than are extended to ordinary customers.

Bank Lippo VIP customers are covered by VIP Home Care, an insurance policy for protection of their homes at special rates, and huge insurance coverage. Other insurance provided is VIP Motor Care, for their vehicles, and Hospital Refundable Insurance, which pays up to Rp 500,000 per day for hospital charges.

Although extremely lucrative, many bankers admit that apart from fierce competition, super-rich customers are highly demanding and fickle. Winning their hearts, therefore, is not an easy job.

In today's era of access, personalization and maintaining relationships are key factors, said Rhenald. The days are gone when transactions were considered as one-off occurrences. A "one- night-stand" attitude is definitely not helpful to maintaining loyalty and eventually making long-term profits for either party, the customer or the bank.

While taking care of a client's money, a bank manager or relationship officer must keep in mind all the time that it is the owner of the money: The human factor, in this case, is far more important. Just like the saying, "There's a child in each of us ... ," Rhenald said merely giving customers delightful surprises, for example, gifts on their birthdays or the like, cements the relationship further. Often, even inexpensive items on the right occasion work better than raffles.

With such huge wealth each has tremendous bargaining power; matching the needs of each privileged customer in order to retain their business is an art in itself, concluded Rhenald.