The Jyske Group is Danish bank that is owned and operated as a business. The company attaches great importance to treating their three groups of stakeholders- shareholders, customers and employees – with equal respect. If the balance shifts in favor of one or two of the groups, this will be to the long-term detriment of all groups (Zeithmal, Bitner and Gremler 1996).
The bank's core values are its fundamental cornerstone. In the eyes of both clients and employees, the following traits are what make Jyske bank unique:
• Common sense
• Open and honest
• Different and unpretentious
• Genuine interest and equal respect
• Efficient and persevering
These same core values led Jyske management to re-evaluate how the bank did business with its customers. The managers knew that if they were to stay true to these values that they would have to change their conservative position of the past and become a service driven and customer innovative bank within the competitive banking sector. The bank managed to achieve its new customer orientated position based on three fundamental areas:
In a highly competitive banking sector, managers looked to the bank's core values and differences to establish its competitive position. The bank with the help of a consultant conducted market research into their primary target market. The research findings showed the target market consisting mainly of Dutch families (60% retail) and small Danish businesses (40% commercial), were favorable towards the idea of bank that had a persona and believed in what it stood for (Zeithmal, Bitner and Gremler 1996). Additional research was also conducted in more difficult areas concerning the banks 4P's- Product, Place, Price and Promotion from a customer orientated standpoint. In contrast, soft factors such as customer relationships with the bank, served as the bank's main point of competitive differentiation.
In addition, Jyske bank concentrated on service innovation and developing tools to support solution based service delivery. For example: IT systems helped employees take customers through processes to determine needs and find solutions.
To avoid higher costs of maintaining certain customers, Jyske bank utilized demographic segmentation to it benefit. They also charged a higher premium and targeted only customers less likely to be a credit risk.
Finally, the bank decided to embrace its own 'Jyske' persona and personality as part of its new competitive positioning even though they knew what price that came along with being purely Jyske.
Question 2: What changes did the bank make to get its new position? What effect did these changes have?
For getting the new position, the Jyske Bank changed its both tangible aspects and intangible aspects, which lead a positive change in the mind of customers.
Although the bank’s core products remained similar to other Danish banks, they way they delivered the service changed. This required significant changes to both tangible and intangible aspects of the bank.
The bank began offering a more personalized service to its customers by assigning each customer a branch employee. Overtime, managers saw that this created problems due to nature of the branch employee job to serve many customers and therefore could not dedicate individual attention to one employee. The solution was more efficient customer orientated account teams, where each customer was dealt with by a small team of branch bankers on an individual one to one basis.
In terms of branch design, the bank spend 750 million to physically re-design its branches, so it looked more like a advertising agency or a small hotel and changed the way customers interacted with bankers (Zeithmal, Bitner and Gremler 1996).
The smaller details is what differentiated Jyske bank the most....