Bank of Canada using CRM and customer profitability tools to gain a competitive advantage in Canada’s increasingly crowded financial services market. Key Issues: RBC financial‚ a full service bank in Canada is facing fierce competition from leading financial institutes and new niche-market entrants after deregulation‚ the bank is also struggling with its 7th ranking out of 8 among financial institutions in the bank’s internal value for money study. Mr. Mclaughlin‚ the VP of CRM and information management
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Successful CRM: Turning Customer Loyalty into Profitability By Bob Thompson CEO‚ CustomerThink Corporation Founder‚ CRMGuru.com [pic] October 2004 Compliments of: [pic] Copyright © 2004 RightNow Technologies. All Rights Reserved. Executive Summary Customer relationship management (CRM) gained recognition in the mid-1990s‚ primarily driven by its perception as information technology (IT). However‚ not enough attention has been given to the fundamental drivers of CRM success:
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2/8/2014 Situation – The RBC Financial Group was the largest bank in terms of asset and market capitalization and a huge customer base but was not doing well in terms of profit‚ talking about the scenario of that time is Canada’s finance industries in flux from changes in banking regulations‚ many smaller banks changed their focus away from retail banking or were acquired by larger banks. Internet banking was a threat as it made a way for foreign banks to enter the domestic market. Non-traditional
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Topic Gateway Series Customer profitability analysis Customer profitability analysis Topic Gateway Series No. 55 1 Prepared by Jasmin Harvey and Technical Information Service January 2009 Topic Gateway Series Customer profitability analysis About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition‚ a brief overview and a fuller explanation of practical application. Finally they
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in determining the cost of serving customers and as a basis for evaluating the profitabilty of a specific customer or group of customers. Why is this important? Most managers agree that 80% of their profits come from the top 20% of their customers and most important‚ the bottom 20% of their customers are unprofitable. For example‚ to compete with Walmart‚Best Buy works hard to attract profitable customers and equally hard to discourage the unprofitable customers which those that are price shopping
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CUSTOMER PROFITABILITY ANALYSIS Customer profitability analysis (CPA) can be defined as a method used to compare the costs of all the activities used to support a customer or a customer group with the revenue generated by that customer or customer group. It is the analysis of the revenue and costs that relates to the customers which can be determined by considering the similarities and differences in customers’ buying behaviours and customer preferences. From the definition‚ it shows three features
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A customer profitability analysis is an evaluation process that focuses on assigning costs and revenues to segments of the customer base‚ instead of assigning revenues and costs to the actual products‚ or the units or departments that compose the corporate structure of the producer. Approaching profitability from this angle can sometimes provide valuable insights into how each step of the process of designing‚ manufacturing‚ and ultimately selling a good or service incurs cost and generates revenue
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RBC Financial Group Case 1. At the start of the 21st century‚ RBC was Canada’s leading bank and largest bank in terms of assets and market capitalization. It was a full-service bank with five main lines of business: personal and commercial banking‚ insurance‚ wealth management‚ corporate / investment banking‚ and transaction processing. The commercial bank of RBC (Royal Bank) accounted for nearly 50% of the company’s net income and had an extensive delivery network with branches‚ Automated Banking
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CUSTOMER PROFITABILITY ANALYSIS: CHALLENGES AND NEW DIRECTIONS Summary This article presents the concept of modifying cost accounting system in order to provide measurements from a customer profitability viewpoint. Most management accounting systems focus on products‚ departments or geographical areas‚ which have little to do with customers. A questionnaire was sent to marketing managers and marketing controllers and interviews with respondents. Much of this article draws on qualitative responses
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Royal Bank Canada is a financial institute that owns and operates RBC Insurance - a Canadian owned financial institute headquartered in Mississauga‚ Ontario. Operating globally‚ RBC Insurance has over 5 million clients in the United States‚ Canada‚ and in international markets. Through its operating entities‚ RBC Insurance provides a wide range of travel‚ life‚ health‚ home‚ auto‚ wealth and reinsurance‚ as well as creditor and business insurance services‚ to individual and group clients (Royal Bank
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