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Filipescu Anka Eirini
some recommendations are provided along with a CRM strategy plan for developing and implementing the strategy.The following paper is an overview of the Beta Bank case study and it aims to identify the challenges and problems faced by Beta bank due to various changing factors. Further down the conlcusion follows. In addition after pointing out the problems and challenges . The CRM strategy plan is analyzed in steps and explained. Table of contents . in an attempt to help Beta bank regain its competitive advantage.
..4 3.1. companies are starting ........8 5.... Introduction Today many industries have realized that the only way up to success is to focus more on the customer’s wants and needs.2 CRM strategy plan………………………………..... Literature review………………………………...p..p......6 4....... In other words.................p.....p....2 3............. References ………………………………..p... Problem statement………………………………............p.....4 3....p..2 2..1 Recommendations……………………………….... Introduction ………………………………........9 1. Conclusion………………………………..........
In addition a CRM strategy plan is included so as to help the bank’s marketing and management system. which has opened all borders for business. To begin with. such as more branches. Problem Statement The case study provides a brief review on the past and current situation of Beta Bank having the main problems pointed out. Moreover. the main focus of the bank was to acquire new customers rather than retaining the already existing ones and that seems to be a problem even now. the banking sector in UK has been facing many challenges. It was then that Beta bank introduced the three principle routes of banking to its clients. the manager recognizes. and they are a click away from checking out the competitors offers. and internet. due to globalization. One challenge that Beta Bank faces is the fierce competition of the new entrants on the market but also the competition from the already existing players. 300 years ago and since then holds a strong position in the financial institution elite of the country. This paper aims to point out the various problems that the bank faces now and that are presented in the case study and to recommend further actions. they have far more choices.to shift from transactional marketing to relationship marketing. However over the past two decades the bank started to face various challenges which acquired certain changes to be done in order to sustain the existing position in the industry. it’s harder than ever to keep a customer. Such a case is presented below. But still. by gaining more clients because of the innovative and attractive products it offered.” So the internet besides bringing opportunities of expansion has brought more competition. 2. too. which is an overview of how Beta bank conducts business in the new challenging environment and how the bank deals with certain changes. Beta bank was established in the United Kingdom. The bank has grown significantly over the years. telephone. Another problem that the bank faces is the internet channel. As Reichheld (2003) says “With the arrival of the internet. Beta bank has to keep up with all the technological changes that occur and implementing various technologies and programs so as to compete and survive. However the e-manager explains that the internet .
the results were not as expected. This would retain customers by nurturing them more. an implementation of CRM is required and moreover an e-CRM approach also as to attract e-customers and keeping them from clicking to another competitive web-site. their needs and their wants. and customers are not yet well informed and fear that the internet is not secured enough for serious transactions. But in order to approach the customer more. without even aspiring to identify customers or build a loyal customer base. The management of Beta bank acknowledges that in the future the success will rely mostly on retaining and sustaining e-customers by offering them competitive and efficient products and services. the challenge of the e-business or more precisely one challenge of the e-CRM is to promote the Internet transactions to customers that have already trusted the bank and subsequently will not fear the usage of the web application. According to Renart and Cabre (2008) a number of companies start from a situation where they are pursuing a basically transactional marketing strategy . by creating one-to-one relationships mostly on the e-business part. However as Fairhurst (2000) said. But how well is an organization prepared for a CRM implementation? And if there are benefits . meaning that every customer will be exclusively served in the case of purchasing a loan or other. are there any risks involved? In order to implement a CRM strategy there are some key characteristics than an organization should have before applying CRM. According to Fairhurst (2000). because the main focus of the bank was to acquire new customers rather than retaining the existing ones although this strategy according to Dawson et al (2003) is time-consuming and it costs so much to acquire new customers that many of these relationships are unprofitable over the early years. that is.usage is not so broad yet when it comes to making decisions and transactions for a loan and other transactions that require important personal information. This seemed to be the case in Beta bank also . People are not trained well. one focused almost exclusively on acquiring new customers. So the bank started to realize that the solution to the problem would be the “single customer view” approach. to . Although Beta Bank decided to redesign everything from branches to the internet web-site. as the “single customer view” is a more personalized CRM approach. to have company-wide acknowledgement about each customer. the key characteristics are to regard the CRM as a set of activities that bring value to the customers and the business. Beta bank nowadays has its main focus on the WAP banking regarding the fact that more and more people use the internet for their daily transactions.
Moreover these years have been characterized by many foreign bank entries despite the findings that foreign banks are not as profitable as the domestic ones ( Kosmidou . learn their needs and wants and . timing and content and finally to tailor and promote other products and services to customers in the way that they want and prefer and at the time that they need it. as a result the management of Beta bank should get more involved into knowing the actual customers of their company . Beta bank’s problem is the internet usage which seems to appear a difficulty on both sides: the employees side and the customer side also.2005).Beta Bank . there is a broad acceptance that relationships are becoming increasingly important. although still holds a strong position in the UK financial sector.2004) . Therefore the management of the bank should be aware that building strong relationships and gaining trust can widen up the opportunity of competitive advantage over the internet.According to Kapoulas et al (2002). Therefore some recommendations are provided below of what the bank should do to keep up with the trends. but still seem to struggle in retaining customers and keep up with the competitors. Literature review During the last two decades a number of changes have occurred in the banking sector .1 Recommendations Managing relationships with customers is challenging for many firms because they engage in many different types of transactions and their customers vary considerably as to their wants or needs (Arnett . the deregulation of the banking system. seems to struggle to retain customers and at the same time overcome the above challenges.as a domestic bank. Kapoulas et al (2002) also stated that managers started to accept the fact that using EMN and RM to communicate with clients can create a relationship dialogue and therefore can lead to a more intimate and mutually beneficial e-customer relationship. such as institutional changes . So. Beta bank has realized this . The above characteristics can also be viewed as opportunities that have occurred. 3.personalize all communications to fit each customer in terms of tone. 3. the technological progress as well as the liberalization of capital flow between domestic and foreign residents.
client services . Moreover . 2000). As Gronroos (2000) stated it is time for firms to focus on creating a relationship dialogue with the customer. Beta bank should implement as mentioned also in the case study a “single customer view”. armed with a proliferation of choices demanding that every interaction they have with a company leaves them fully satisfied (Wu. Therefore Beta bank should look more into sustaining and nurturing the already existing relationships with the customers rather than chasing new opportunitiescustomers. Nonetheless. it is way to run the business (Fairhurst. according to Renart and Cabre (2008): Does their company have the .apply a more customer-focused approach when it comes to tailoring products and services. operations and business strategies”. With this approach Beta will be able to consistently collect customer information at the point of sale. 3.2 CRM strategy plan Customer Relationship Management (CRM) has become one of the key business strategies of the late 20th century and the early 21st . The SCV is a IS platform which will change the operations of the banks and enable it to be more customer-focused since this is the case of Beta bank lack. Beta bank’s multi-channel approach to banking needs integration. However nowadays customers are smart. As Ian Beaumont (2009) said “A well implemented SCV delivers benefits across marketing . 2005). When implementing a CRM strategy companies have to ask themselves three questions. enabling thus both the customer and the firm to “reason ” together and eventually develop a knowledge platform which will add value to the customers as well as forge the relationship between them and the firm. it firstly has to change and enforce the CRM strategy. 2008). highly informed. Based on these facts . powerful. meaning that the management realized it’s time for closer relationships with customers. There are many different definitions of what CRM means but the most important thing to remember is that CRM is not only a technology solution. in order for Beta bank to seek the SCV approach. track customer habits and preferences and afterwards this data will be updated crosscompared and ready to provide valuable information about tailoring products and services (Sun Microsystems.
will be analyzed and valued as to whether and where should the changes take place. e-management. The departments or the areas that have problems will be identified and each department will set an array of goals and objectives that should be considered. According to Kumar and Reinartz (2006). Gaining enterprise commitement In the first step all the departments of an organization should be brought together so as to join forces and information to create valuable inputs. provide information and recommend actions to the whole organization. which will make decisions. actions that are . Furthermore. The group preferably should be consistent with personnel from all departments such as management. 2. the company should assign to a group of people to be the CRM team . In this process every department should be informed as to what benefits and opportunities the implementation of this strategy will include. marketing. In the case of Beta bank this should be very helpful hence there will be a team from all departments that will cooperate on a better web-site and better e-CRM strategies. However there are four steps that implicate the implementation and adoption of a CRM strategy.necessary realtionship potential? Are customers likely to want to have a relationship with the company? And Is a low-intensity CRM strategy appropriate? Once a company has answered all three questions and found that a CRM strategy is feasible can then start designing and implementing the strategy. Analyze business requirements In this step the current situation of how the business is done. sales. 3. the four steps are: 1. financial and CRM experts from outside the company. Build a CRM team When the first phase of the implementation is achieved and enterprise commitment is achieved. In the case of Beta bank this should be very helpful as the management and the various employees will be better informed how to use CRM.
and enables effective and efficient business processes integrating people and technology. the location and others. Therefore if implemented correctly CRM will help Beta bank gain a successful competitive advantage and help I their “success future”. continual learning and dynamic application of customer intelligence to further the business. The real wants and needs of the customer and the real offers by the company. E) and the final one is the relationship management of stakeholders. Define the CRM strategy In the fourth step there are five other areas that should be considered and covered extensively: A) the first one is the value proposition which is the products and services offered to the customer. C) the third one is the customer strategy which is a package of the customer understanding. according to Lassar(2008) studies have shown that successful CRM improves both revenue and profitability of the organization. customer affiliation . how competent is the management when it comes to customers. 4. B) the second one is the business case which connects the customer value with the shareholder value. the technology infrastructure. which focuses on the training of the employees providing them with the knowledge to handle the new system. the process of business. 4. by developing a 360-degree understanding of the client . and covers areas such as the organization. However though there some risks involved like alienating potential customer or existing one by overzealously seeking . D) Enterprise transformation is the fourth one.harmful for the organization will be eliminated as to develop an efficient and effective CRM strategy. Conclusion To conclude with.
p. Computer Weekly. Arnett. Paul (2000) e-CRM. Applied Financial Economics. 25 (4).personal information or by using the customer information in wrong purposes (Seminerio. Journal of Database Marketing. Denis and Badrinarayanan. (2000) Service Management and Marketing: A customer Relationship . These risks need to be talen in consideration when interacting with customers because you never know how much information retrieved will be positively viewed. 5.557-571 5. 8 (2).329-343 3. C. Leigh (2001) Effieciency and productivity change in the UK banking.12-12 4. Drake.6-6 2. Fairhurst. 2000). Beaumont . p. p. Christian (2006) Alliance onerhaul gives single customer view. 11.137-142 6. Gronroos. Journal of Personal Selling& Sales Management. Precision Marketing. p. Vishag (2005) Enhancing Customer Needs Driven CRM Strategies. References 1. Annesley. Ian (2009) Matrix Data. p.
68-73 11.Management Approach.22-24 15. Kosmidou. et al (2002) Say Hello. p. Business Monitor International. M. John Willey& Sons. Wave Goodbye: Missed opportunities for electronic relationship marketing within the financial services sector? International Journal of Bank Marketing. W. p. p.61-77 13.W (2005) A hybrid technology acceptance approach for exploring e-CRM adoption in organizations. United Kingdom Commercial Banking Report Q2 (2010) UK Banking Sector Outlook. Renart. 7. L. L. and Reinartz. W. p. Computational Management Science.J (2006) Customer Relationship Management : A databased approach. p. 24 (4). p. 10. et al (2004) Foreign versus Domestic banks performance in the UK: a multicriteria approach. A. Lassar.303-316 .1. et al (2003) Winning Customer Loyalty id the key to a winning CRM strategy.L and Wu. Journal of Accountancy. 20 (1). Inc. Kapoulas. Ivey Business Journal. and Cable Carlos (2008) Paths to continuous improvement of a CRM strategy . Wu.302-310 8. (2000) E-CRM: The right way. K. et al (2008) Developing a CRM strategy in your firm. K. Trziste/Market. p. Reichheld. Behavior & Information Technology.329-343 9. Sevvinerio. p. F.1-5 12. Inc. A. 20 (7).71-80 14. eWeek FastTrack 100. Kumar. John Willey & Sons.
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