China Construction Bank merchant installment business means that cardholders use CCB credit cards (excluding commercial cards) to purchase goods or services at Construction Bank installment partner merchants (hereinafter referred to as "merchant"), through the China Construction Bank installment system Installment transaction, after the transaction is successful, the corresponding transaction amount is divided into several installments, and the cardholder repays the money monthly within the agreed period. The corresponding handling fee is paid by the cardholder, or according to the agreement between our bank and the merchant, the merchant subsidizes part or all of the procedure. fee business.
The profit model of merchant installment is mainly that customers bear handling fees and merchants discount interest.
gt; 1. High yield: The annualized income is as high as 8.1, which is an important way for various banks to make money (one-year loan interest rate is 4.35)
2. Low risk: visible Same as ordinary consumption
3. Low cost: The cardholder does not need to apply for a special application, and the bank staff does not need to be accompanied. The merchant's cashier completes the operation directly without additional investment.
4. One-stop: consumption, payment and credit are completed simultaneously.
5. Rejuvenation: in line with the consumption behavior characteristics of young customer groups.
6. Easy entry: as an entry point for cooperation with merchants that are difficult to acquire orders
1. Client
a. Increase customers' purchasing enthusiasm and promote the growth of consumer transaction volume.
b. Fee income is direct income and has no other costs.
c. Can increase customer stickiness and loyalty
2. Merchant side
a. Stimulate consumption, increase merchant transaction volume, and increase merchant stickiness.
b. Obtain higher profits and enhance the comprehensive value of merchants
c. Bring deposit income to our bank.
At present, our bank's pricing level is quite competitive in the industry. As can be seen from the figure below, our bank's installment fee rate is only slightly higher than that of ICBC, especially for installments above 6, and significantly lower than that of China, Rural, and Agricultural Bank of China. Bank of Communications can make full use of this advantage in the marketing process. At the same time, in an economic environment where market interest rates are rising, taking into account the interbank rate situation, installment fee rates should be raised for some industries and customer groups. The increased portion can be used by merchants to expand resources if necessary; at the same time, they must be good at flexibly using multiple business models , there are models such as merchant interest discount, cardholder interest payment, mutual payment, merchant profit sharing, cardholder profit sharing and other models for branches to choose from, truly realizing one policy for each account.
4 N promotion model: Based on the head office’s early analysis of the consumer market, the four major industries of mobile communications, home appliances and digital appliances, education and training, and automobile life were selected as key expansion areas, and all banks were required to achieve this by the end of 2017. The installment business of 100 merchants in 4 major industries is fully covered. On this basis, we will deploy and promote it to N industries including department stores and supermarkets, fitness and beauty, mother and baby parent-child, travel and leisure, gold and jewelry, medical care, etc., to achieve the "4 N" industry coverage goal.
According to statistics, in the first half of the year, more than 92% of our bank’s merchant installment income came from mobile communications. Once I saw that our bank’s merchant installment business was overly concentrated in the mobile phone industry, and the installment merchant structure was seriously unbalanced. Later, In the half-year work, we should increase our marketing efforts in the other three industries
We should dig deep into our own location advantages, develop popular nearby merchants, sort out the popular nearby merchants that meet the requirements, and include them in the phased target customer list of key merchants, and actively strive for To organize cooperation projects; for large-scale high-quality cross-regional merchants, we must be good at discovering them and take the lead in organizing cooperation projects as the host bank, and actively coordinate the implementation of projects.
Payment methods have begun to promote their own Internet transformation. While mobile payment is changing traditional consumption habits, it also leads the transformation and upgrading of merchants and consumers' consumption concepts, providing a good development environment for merchants in installments. Branches can actively connect existing offline high-quality acquiring merchants with online sales channels, such as online malls, outlets, mobile APP applications, etc., as well as e-banking merchant lists, and carry out installment business cooperation with online merchants to achieve online sales. be fully deployed, and technical support can be provided through external agencies when necessary.
The service characteristics of installment merchant business and preferential merchant business have a high degree of overlap. Their simultaneous development is conducive to the integration of customer resources. It can not only promote installment transaction volume and merchant operations, but also improve the satisfaction of Dragon Card credit card holders. Card use experience and improve customer satisfaction.
Make full use of the cooperation resources of our bank's co-branded parties, especially the four major industries in the major expansion areas of cooperation, and activate the installment payment function on the official website of the partner. For various co-branded card projects that have online payment channels and meet the conditions for merchants to start installment business, the merchant's installment payment function will be activated simultaneously.
Heilongjiang Daqing Branch: From January 1 to April 15, 2017, it cooperated with the price shopping mall of Daqing New Mart, a leading local commercial enterprise, Dashang Group to carry out a 30% off credit card installment promotion. Launch a 5% discount campaign for Long Card Hot Purchase Card and Oilfield Trade Union Card. ***Carry out 15 activities and achieve an installment transaction volume of 15.6087 million yuan.
Liaoning Shenyang Hunnan Branch: In the local Xinglong Outlet Mall, we seize the opportunity of the merchant’s own membership day promotion activities, use the merchant’s membership recharge and cashback resources as incentives, and use the opportunity to superimpose our bank’s 0 interest and 0 procedures We paid for the promotion in installments and achieved an installment transaction volume of nearly 30 million yuan within 25 days with less resource investment.
Hebei Branch Beiguo Electrical Appliances Installment: During the 3-day activity period, 728 transactions were successfully completed, with the installment transaction volume reaching 3.498 million yuan, and a profit of 70,000 yuan was achieved. The unit price per customer is about 4,800 yuan.
Shanghai Branch Kaidun Children’s English: During the 71-day activity period, 97 transactions were completed, with a transaction volume of 1.98 million yuan, and a profit of 49,600 yuan. The unit price exceeds 20,000 yuan.
Xining Baoguang Gold Store of Qinghai Branch achieved an installment transaction volume of 900,000 yuan during the 30-day event, with 176 transactions and an income of 15,400 yuan, accounting for the installment transaction volume and transaction volume of the branch’s merchants that year respectively. The number of transactions, the fee income is 72, 73, and 51, and the unit price per customer is about 5,000 yuan.
Shandong Branch’s Dezhou Department Store installment business achieved an installment transaction volume of 9.77 million yuan in the first quarter, with 1,902 transactions, an income of 195,400 yuan, and a unit price of approximately 5,000 yuan.