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Institute of Management

Nirma University

Course: Customer Relationship Management

Individual Assignment-2
Citibank CRM Practices

Submitted to:
Tripurasundari Joshi
CRM (B)

Submitted by:
Avishek Mukherjee (161212)

Date of Submission: 26th February, 2018

....................................................... 5 Conclusion and Recommendations .................................................................................... 4 Customer Relationship Marketing (CRM) in Citibank .......................................................... Objectives............................................... 2 Citibank’s Value Proposition ........... and Achievements ........... 5 Customer Complaint Management in Citibank ..... 4 How Citibank Attracts Customers . 7 1 |C R M ........................................................................................................................Contents Introduction to Citibank ........................ 3 Customer Centricity in Citibank ............................................................................................................ 6 References ................................................................................... 2 Citibank’s History...........................................................................................................................................................................................................................

according to its website. the US. scattered throughout Asia. and private banking. the GTR Leaders in Trade Award (2013) for the best trade finance bank in Asia.Introduction to Citibank Citibank. After about eight decades of steady operations. 2015). trade finance. in 1976. creative and responsible” (Citigroup. Objectives. Citibank has about 300 international locations in over 40 countries. Today. Citibank has developed a robust corporate image over the years with its expertise in banking. and took the initial steps toward globalization by establishing new branches in Shanghai and Manila in 1902. e-commerce. personal loans. is a global commercial bank based in the US. 2 |C R M . the bank changed its name to Citibank. and the TFR Excellence Award (2014) for the most innovative trade bank. mortgage lending. institutions. Finally. In a study conducted by Socratic Technologies in 2005. (2) responsible finance.. it was found that Citibank and Bank of America own the greatest market share of financial institutions in the US. and Central and Eastern Europe. and governments with a wide range of banking products and services. In 2007. the company changed its name to The National City Bank of New York in 1894. (3) ingenuity. Citigroup Cards is currently one of the world’s largest providers of credit cards. and it has remained the same ever since. It provides consumers. Latin America. Citibank’s History. including consumer finance. which made things much more convenient for consumers. Inc. Citibank’s headquarters is in Las Vegas. and that one-third of Americans report being a customer of Citibank. investment banking. student loans. are (1) common purpose. and (4) leadership. managing over 150 million accounts. Citibank introduced and launched new mobile banking services in the US. According to its website. a subsidiary of Citigroup. These awards include the Visa Highest Average Card Spend Award (2012). and Achievements Citibank was first established as Citi Bank of New York in 1812. this company has 200 million customer accounts and operates in over 160 countries and jurisdictions. Citibank has been the recipient of numerous awards in the past few years. corporations. Citibank describes its objective to be the following: “to create the best outcomes for our clients and customers with financial solutions that are simple. retail banking. The company’s core principles. cash management.

000 MEPS ATM networks.000 Citibank ATMs. Free instant fund transfer to Citibank accounts worldwide. A “Call Me” service especially useful for travelling customers. 24-hour electronic chat or e-chat responsiveness service to customers. Full suite of global banking service 1. Access to over 11. 20-seconds pick-up by Citiphone officers. 3. and (3) personalized products and services. The company’s newly-launched value proposition has three main elements: (1) increased convenience and responsiveness. 2. 24/7 phone banking service with rapid. Free account opening assistance for clients relocating overseas. 4. Personal products and services 1. Element Services/Values Increased convenience and 1. 3. Citibank conducted extensive research across seven Asian markets – Malaysia included – which focused on “clients’ banking preferences. 2. financial needs. A consolidated view of multiple Citibank accounts overseas.000. 3. The i-Wealth Goal Planner service which allows clients to calculate their wealth and understand their current financial needs. The purpose of the research was to develop a new value proposition.000. (2) full suite of global banking services for all clients. Free overseas cash withdrawal at 20. through which the company could capture emerging affluent market shares in the coming years. A dedicated personal banker for clients with minimum balances of RM50. 4. 3 |C R M . Preferential pricing and benefits on selected services for clients with minimum balances of RM50.Citibank’s Value Proposition In 2012. and lifestyles”. 2.

classifies customers into four tiers in terms profitability. which remember users’ preferences. as a leading global bank. Chinese. Citibank launched over 2. customer-centric ATMs in the US. The Customer Pyramid is a tool that enables an organization to utilize the differences in customer profitability tiers to boost its profits. thereby enabling its customers to explore their needs through interactive experiences. the company’s longstanding rewards program that 4 |C R M . and speed up the process of checking balances. The customer pyramid. Spanish and Korean. as well as determine the optimal allocation of scarce resources. needs to have a few distinctive strategies for turning potential customers into profitable.900 upgraded. making deposits. offer directions in English. in 2014. loyal ones. Polish. the company could use a management tool known as the Customer Pyramid. Greek. and withdrawing cash. Citibank has implemented many such strategies. For instance. Citibank could use this tool to strengthen the link between service quality and profitability. one of them is Private Pass. In order to devise these strategies. the customers that belong to each category are expected to deliver different levels of profit. How Citibank Attracts Customers Citibank. which is illustrated below. As is illustrated above.Customer Centricity in Citibank Over the years. Citibank has moved from a product-centric organization to a customer-centric one. That implies that Citibank’s marketing strategies have to be different for each of the categories in order for them to be effective.

According to the instructions. effective complaint handling can increase customer satisfaction and loyalty even more than preventing defects and failures. found that CRM increases customers’ loyalty. for instance. 5 |C R M . and so forth. then. (2014) on Nigeria’s banking industry. Stone and Foss define customer relationship marketing (CRM) as the “methodologies. the Citi Mobile app. technologies. Citibank engages in complaint handling in many ways. A study conducted by Saka et al. there is a section named Grievance Desk which provides instructions regarding customer complaints and inquiries. for instance. promoting its latest banking products. service personnel. On the website of Citibank India. Customer Complaint Management in Citibank In a study conducted by the firm Technical Assistance Research Programs (1980). that promoted the bank’s equity loans and ran from 2001 to 2006. customer preferences. Customer Relationship Marketing (CRM) in Citibank In their book Successful Customer Relationship Marketing (2001). to determine market trends. including Citigold. and others. enhances banks’ financial performance. it was found that. Citibank would need an effective customer complaint management system in order to build a satisfied and loyal customer base. named Live Richly. Another study found that. “Platinum” tier customers.” Typically. and that customers’ loyalty could be increased through customer complaint management. service and maintenance requested by customers. Programs like Private Pass help Citibank to appeal to high-spending. customers could make complaints by submitting their inquiries online or through the company’s 24/7 CitiPhone helplines.organizes events and gifts tickets to Citibank credit card and debit card users. the company organized a customers-only Alicia Keys concert at New York City’s Lincoln Center. and increases their market share. companies gather information about customers and store them in a database. salespeople. In 2012. ironically. Citibank launched a national marketing campaign in the US. An example of Citibank’s CRM efforts is its advertising campaign. which is then used by the management. complaining customers show a higher degree of loyalty comparing to noncomplaining customers. Considering the existing literature on this topic. In 2014. and e-commerce capabilities used by companies to manage customer relationships. and the Citi ThankYou® Preferred Visa card. costing the company about $1 billion.

CitiPhone helplines. The company’s competitive advantages were identified to be its capital adequacy. And finally. or the company’s website. customer relationship marketing has to be integrated throughout the organization. specialized individuals are in charge of its customer service. This way. diverse product and service portfolio. and strong brand recognition. and Citibank could prevent that by adding to the promptness of its service delivery. Citibank’s newly-launched value proposition was. Customers have been observed to “[leave] the waiting line without being attended to”.A section analogous to Grievance Desk could be found on the website of Citibank Bahrain as well. Citibank could establish a consistent. It was demonstrated that Citibank has gradually become a customer-centric organization. and Citibank has to overcome that. Citibank runs customer relationship marketing (CRM) programs – mostly advertising campaigns – as well. it was shown that. As for the second recommendation. One of them is for Citibank to ensure that only well-trained. also. There are a number of recommendations to be made regarding Citibank’s relationship marketing strategies. 2014). wealthy customers. Citibank has established a strong market position over the years. And finally. Early in the paper. and has about 200 million customer accounts. or perhaps upgrade. and has already developed procedures for customers to make complaints and inquiries. instructing customers to make complaints through emails. By providing personalized service. which is aimed at high-spending. the company could deliver greater value to its customers and add to their sense of satisfaction (World Market Intelligence. for instance. Citibank also makes use of the 4 tier Customer Pyramid to identify different categories of customers and develop marketing strategies specifically directed to them. discussed in detail. it was shown that Citibank recognizes the need for an effective customer complaint management system. customer-friendly image of itself. and that it continues to grow exponentially. for instance. Citibank could also enhance. Private Pass. with all the departments engaging in CRM activities. increasingly providing customers with interactive experiences – via its customer-centric ATMs. Another recommendation for Citibank is to ensure that customers are attended to promptly. by launching 6 |C R M . Conclusion and Recommendations Citibank is a giant corporation in the banking industry which operates in more than 160 countries and jurisdictions. its personal banking services. There is a natural tendency for financial services companies to assign non-experienced individuals to customer service positions. An example is the company’s rewards program.

programs – rewards programs. [Online] Available at: http://www. Rankings and Recognition. 6. References 1. 7 |C R M . for instance – that are specifically aimed at its not-so-wealthy customers. 5. Inc. Citigroup. N.thefreelibrary. 7. Banks. London: 2.com/tts/about_us/awards/ [Accessed 17 May 2015].. The Economic Times.citigroup. Citigroup.S.html [Accessed 17 May 2015].citigroup.indiatimes. [Online] Available at: https://www.-a0137867963 [Accessed 20 May 2015]. [Online] Available at: http://www. History.com/citi/about/history/index.citibank. 2014. Citibank.com/Citibank+Enjoys+Largest+Market+Share+Among +Major+U. Progressive Media Group. Citibank Enjoys Largest Market Share among Major U. [Online] Available at: http://economictimes.com/citi/about/citi_at_a_glance. World Market Intelligence.citigroup. 2015. Definition of "Positioning". 2015. 2015. 2015. [Online] Available at: http://www. 2015.com/citi/about/mission_principles. Farlex.html [Accessed 17 May 2015]. Citibank could create a pleasant experience for all of its clients across the wealth continuum.A. Citigroup.htm [Accessed 17 May 2015].S. 2005.: Company Profile and SWOT Analysis.com/definition/positioning [Accessed 19 May 2015]. [Online] Available at: http://www. Awards. Citi at a Glance.+Banks. Citigroup. 3. 4. Citi's Mission: Enabling Progress.