Questions 2: It is often claimed that CRM can create competitive advantage.

Does
CRM create competitive advantage for Capital One? If so, how?

CRM create competitive advantages for Capital One:

Capital One's approach focuses on managing its connections with consumers.

There are several connected corporate functions. As management of Capital One

often tell "all divisions operate in an integrated way and the corporation has no
offices."

How:

Capital One adapts its activities to the need of its consumers.

The company aims to customize and flexibly its consumers.

Model Big Yellow Square:

Four measures are key element in the "Big Yellow Square" model: low cost
efficiency, high quality client service, flexibility and associated satisfaction (BYS).
The BYS states that the views of Capital One on managing a contact center are
different from most other firms in particular in terms of the weighting of "associate
happiness," as "quality of service" and "cost effectiveness" are equally essential.

People are educated to deal with unforeseen demands and services in one or more
fields.

Profitability of clients

Leverage your capacity in many sectors in the credit card business and elsewhere

Online presence retail banking

4 of the top five credit card businesses (Exhibit 7) have a retail banking presence,
providing them with access to inexpensive cash. This enables the organization to
go to a brick and mortar sector and implement a comprehensive online banking
solution.

Partner with a large retail chain in order to enhance sales.

Capital One may connect to a large retail chain and use your Point-of-Sales data to
identify trends and offer consumers personalized promotional schemes