CUSTOMER CENTRICITY AT COMMERCE BANK

Click to edit Master subtitle style Ipsita Patel Sweta Agrawal Amit Biswas Saheba patel Tanujit

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INTRODUCTION

Commerce bank was one of the leading FI in USA. Total assets worth-over US$ 21 billion,270 branches located in New Jersey, New York, Pennsylvania and Delaware. In yr 2002-total income US$ 830million(39%more than previous yr),net profit: US$ 145 million(41% more than previous yr). In yr 2003 46 new branches opened and target to reach 500 branches and accumulating asset of US$ 50 billion by 2007. The main focus on high customer service.

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Continued.

They had opened physical branches aggresively.(opened 7 days a week from 7.30 am to 8 pm) and had a 10 min. policy. It offered free account varification,24 hr phone banking and award winning online banking service. Phone had been installed at the banks ATMs. Check view features had been added on its website and had installed Penny Arcades at branches. On rainy days, employees escort customer from their cars. It conducts fun filled events called retailment.

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Conti
To create more excitement it created 3 mascots:

Mister C Buzz Doctor Wow It has taken various steps to mantain and improve service quality:Set up commerce university

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Continu.

Traditions-(1700 courses & 15000 employees,150 hrs training program for 1-2 yr period) Red Fridays "wow teams "Wow" awards Kill a stupid rule program

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ACHIEVEMENTS

Its stock had grown by 2000% in past 10 yrs. In the 3rd quarter of 2003,it had a growth rate of 41% in deposits and 26% in EPS. Business week listed the bank in 50 top performing companies of the S&P 500. Received awards for online banking service. Its online service is best in Remote Banking and was striving to become Americas most convenient bank.

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CASE ANALYSIS

Commerce bank is involved in the financial service business. Customer access service quality by looking at

product features, price, location, personnel, symbols and branch environment etc.
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Commerce Bank has adopted a unique retail strategy to provide a tangible retail experience to its customers

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STRATEGIES

Premises:-All branches have a similar architecture, ambience and style. The building design and appearance used by Commerce Bank projects an image of a strong organization with contemporary views.eg: Steel exterior-image of strength Use of glass-contemporary image Concrete st.-low cost operation Brick st.-up scale image

1. 2. 3. 4.

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Conti.
Personnel:

The Bank has recruited well-trained personnel to provide high quality customer service. employees are perceived as customer care representative rather than bank personnel. Penny arcades provides dollar bills in exchange of coins and no charges for using machine Communication material:It has created 3 mascots:- Mister C, Buzz, Doctor Wow

Service:

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Deluxe Financial Services and Commerce Bank, a regional bank holding company with approximately 360 locations in Missouri, Illinois, Kansas and Oklahoma, recently announced they have entered into a new partnership to better serve customers.

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METAGROUP DEFINITION

CRM is a business strategy providing a systemic approach to customer life cycle management (CLCM). CLCM is a three domain business system, aligning business processes, technology and the customer life cycle. This business system must integrate sales, service and marketing process and the CRM technology environment with the customer.

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Why CRM is a big issue in bank?

Value consciousness & Intolerance for low Service Levels and commoditized products:
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Customers are becoming more demanding. The expectations are extreme for reliable products. They are intolerant to failures and demand continuously more customers compare their experience with best in class expectations. As the customers become more educated, their expectation level is increased. The customers will raise their bar each time their expectations are met

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Good product is not sufficient. Companies have moved away from transaction to relationships Competition - With globalization and e-commerce continuing to spread, corporate offerings are increasing and becoming commoditized. Differentiating products and services is becoming more and more difficult . In such a scenario, CRM shows a company the way to increase customer loyalty, earn higher margins and stronger branding Technology-The cost of CRM Technology has dropped, so it is easier to justify systems that consolidate your customers touch points. The separate and isolated systems traditionally used by Customer Service, Sales and Marketing can now be phased out.

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As commerce bank is a Financial service provider: It aims to

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Make its services tangible (Through Economic and functional value along with psychological value) Service value (Information value) Personnel value(Employee based value) Image value (Experience value) Relationship value

Kotlers way of Defining value :

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OPERATIONAL CRM IN COMMERCE BANK

The customer touch points are classified into :
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Face to face touch points Sales/Service/Channel/Events/stores/Promotions Database driven touch points Telephones / Email/Mail/SMS/Fax/Loyalty Cards/ATMS

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RECOMMENDATION

As in back office or strategic CRM, which involves understanding the customer activities that occurred in the front office. (Dyche 2002). It involves analyzing large amounts of cross-functional data using data mining and other methods and feeding the result (knowledge gained) back to operational CRM. It also studies customer behavior patterns that helps to know what products to position for cross-selling / up-selling and the level and kind of service to deliver to meet customer demand

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THANK YOU

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