Customer Relationship Management Strategies in Financial Services: Achieving High Performance and Profiting From Innovations in CRM

• Customer Relationship
  
• Management (CRM)
  
• Summary
  
• Introduction
  
• 21st century attitudes towards banks
  
• How marketing oriented is your company?
  
• Benefits of developing relationships
  
• Relationship marketing versus transactional marketing
  
• Eight major benefits of developing relationships
  
• Long-term profitability
  
• Lower costs
  
• Repeat customers often cost less to service
  
• Opportunities for cross-selling
  
• Defection less likely
  
• Employee retention
  
• Family influence
  
• Satisfied customers provide referrals and may be willing to pay a
  
• price premium
  
• A customer retention plan: reducing defectors and boosting retention
  
• rates
  
• Measure customer retention
  
• The crude retention rate
  
• The weighted retention rate
  
• Ascertain defection motives
  
• Price defectors
  
• Market defectors
  
• Are all customers the right customer?
  
• Identifying profitable customers for CRM
  
• First group of customers to target
  
• The middle group of buyers
  
• The final, less profitable, group of customers
  
• Implementing relationship marketing
  
• Defining the value proposition
  
• Case study: First Direct
  
• Meeting consumers diverse requirements
  
• Delivering superior value and engaging entire organisation
  
• Implications for practice
  
• Demonstrating trustworthiness
  
• Generalised trust
  
• System trust
  
• Personality based trust
  
• Process based trust
  
• Who owns the customer?
  
• Effects of merger activity
  
• The “customer is king”
  
• “Everyone owns the customer”
  
• Sharing information companywide is crucial to widening customer
  
• ownership
  
• How to evaluate your company’s success in offering customer satisfaction

Chapter 2 Creating Value for the

• Organisation
  
• Summary
  
• Introduction
  
• Developing a segmented service strategy that aims to deliver increased value
  
• to the customer and the organisation
  
• Step 2: Segment the customer base and determine segment value
  
• Step 3: Identify segments’ service needs
  
• Step 4: Implement segmented service strategy
  
• Finalise segment service strategy plan

Chapter 3 How To Tackle Customer

• Defections
  
• Summary
  
• Introduction
  
• Case study: Abbey
  
• Defection can be remedied
  
• Possible reasons for customer defection
  
• What are the factors that force customers to switch?
  
• Retaining customers in a competitive business
  
• Loyalty must start to count for something

Chapter 4 Achieving Customer Satisfaction

• Through Service Quality
  
• Summary
  
• Introduction
  
• Financial services characteristics and their implications for branding and
  relationship management
  
• Intangibility
  
• Implications for branding
  
• Inseparability
  
• Implications
  
• Heterogeneity
  
• Implications
  
• Perishability
  
• Implications for branding
  
• Fiduciary responsibility
  
• Two-way information flows
  
• Implications
  
• Impact of online delivery for service concepts
  
• Consumer empowerment
  
• Effective separation of production and consumption
  
• Service quality
  
• Example: customer care at the ANZ bank
  
• ANZ’s ‘Customer Service Charter’
  
• Researching service quality
  
• Research objectives
  
• The most common research objectives in financial services
  
• Research methods
  
• Regular customer surveys
  
• Customer panels
  
• Transaction analysis
  
• Mystery customers
  
• The SERVQUAL methodology
  
• What to measure
  
• How to measure
  
• Internet customer questionnaire

Chapter 5 The Implications of eCommerce
for CRM

• Summary
  
• Introduction
  
• How should financial firms respond?
  
• Example: internal marketing at Barclays
  
• How different companies are approaching eBusiness
  
• The reluctant approach of a life insurance company
  
• The integrated approach of a national retail banking operation
  
• The focus for change in an international insurance company
  
• The stand-alone Internet bank
  
• Key factors in developing effective strategies for eCommerce
  
• The role of senior management
  
• Capabilities required in a changing environment
  
• Critical success factors
  
• The threat of criminal activity on eCommerce
  
• Ways to help customers protect themselves against fraud

Chapter 6 Avoiding the Pitfalls in CRM

• Summary
  
• Introduction
  
• Peril 1: Implementing CRM before creating a customer strategy
  Example: Fidelity Investments
  
• Peril 2: Rolling out CRM before changing your organisation to match
  
• Peril 3: Assuming that more CRM technology is better
  
• Peril 4: Stalking, not wooing customers

Chapter 7 Appendix

• Example
  
• Part A

List of Figures

• Figure 1.1: First Direct customer communication preferences
  
• Figure 2.2: The customer profitability matrix
  
• Figure 2.3: A framework for developing a segmented service strategy that aims to deliver
  increased value to the customer and the organisation
  
• Figure 2.4: Market maps
  
• Figure 2.5: The segment competitor profile of an insurance company
  
• Figure 3.6: Consumers are more demanding than ever
  
• Figure 3.7: More consumers plan to switch in the next 12 months
  
• Figure 3.8: Factors that erode satisfaction and trust
  
• Figure 4.9: Reasons for customer loyalty
  
• Figure 5.10: Reasons for customer preference for face-to-face contact
  
• Figure 5.11: Complex products sell in the branch
  
• Figure 5.12: Newcastle Building Society’s virtual customer service assistant
  
• Figure 6.13: The imperatives of CRM
  
• Figure 6.14: The imperatives of CRM, continued

List of Tables

• Table 1.1: The contrasts between transaction and relationship marketing
  
• Table 1.2: Customer satisfaction exercise
  
• Table 2.3: Customer management stage analysis, problems and opportunities
  
• Table 4.5: A comparison of different online metric collection methods
  
• Table 7.6: Dimensions of Internet banking service quality
  
• Table 7.7: Expectations of an excellent online bank, Part A
  
• Table 7.11: Expectations of an excellent online bank, Part B