TD Canada Trust
After the completion of a mega-merger, TD Canada Trust seeks to reposition the brand in order to retain customers and realize steady revenue growth. To examine the investment return of the new brand campaign “comfortable banking”, Executive VP Armstrong led his team developed a “linkage analysis” system and proposed a new branch incentive plan. This essay aims to evaluate the “linkage analysis” model and its effectiveness, also to comment on the incentive plan based on results of “linkage analysis”. The Merger between the Green and the Red
In 1999, an $8 billion mega-merger between TD Bank and Canada Trust lifted the former fifth-largest commercial bank to its third largest place. The former sales-oriented bank, combined with customer experience-focused brand it acquired realized significant profit growth of 37% in the following months. In addition, TD Canada Trust’s customer base keeps expanding. Early signs indicate that the merger deal has been a success. An effort to link “Comfortable Banking” Positioning with Measurable Performance Result The TD Canada Trust management team is highly concerned with the bank’s ability to retain customers in the long run, for only a consistent and ever-growing customer base is the key revenue driver, making the merger worthwhile for the investment. To minimize customer attrition rate and build up a strong brand, the company had launched a lavish advertising campaign immediately after the merger, called “banking can be this comfortable”. To achieve the new branding goal, the bank’s integration and marketing teams developed the customer satisfaction index (CSI) system, aiming to measure brand experience effectively and accurately. However, the CSI system alone couldn’t clearly prove the merits of the “comfortable banking” brand positioning. To solve this problem, Chris Armstrong initiated the “linkage analysis” study to determine which key service behaviors were linked to customer...
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