Commerce Bank
Executive Summary
Commerce Bank was founded in 1973 by Vernon Hill II who took his experience in operating fast-food restaurants and applied it to banking. He decided to call his branches "stores" and developed a business model focused on maximizing customer convenience and delivering consistently great customer experiences.
Commerce Bank invested heavily in store facilities and personnel to make the customer experience great and did not focus on having the best rates. To increase convenience, stores were kept open seven days a week and hours were extended in the mornings and evenings. Also, customers were able to get instant ATM cards, and funds from their deposits would be credited either the same day or the next day. For fun, the bank offered free coin counting machines and gave customers free merchandise such as pens and even dog biscuits. Employees were carefully recruited and trained and competed for WOW! appreciation awards. Through all of these efforts, the bank has been able to reduce the costs of acquiring and retaining customers and deposits as well as its staffing costs. In a highly competitive industry, Commerce Bank created a value proposition with mass customer appeal and a business model based on some of the best practices of speed, convenience, and friendly service from the fast-food industry.
Background
Commerce Bank was founded in 1973 by Vernon W. Hill II with nine staff and $1.5 million. From the onset, Mr. Hill decided that Commerce Bank was not in the banking business but in the retail business, and created a business model that revolved around becoming a power retailer. Drawing heavily from his retail experience in fast food franchising, he leveraged important lessons from retailers that had transformed their own industry such as Starbucks and Home Depot. Best practices from these non-financial services companies offered unique insights to help Commerce Bank set itself apart in the financial services world.
Taking a different
Commerce Bank was founded in 1973 by Vernon Hill II who took his experience in operating fast-food restaurants and applied it to banking. He decided to call his branches "stores" and developed a business model focused on maximizing customer convenience and delivering consistently great customer experiences.
Commerce Bank invested heavily in store facilities and personnel to make the customer experience great and did not focus on having the best rates. To increase convenience, stores were kept open seven days a week and hours were extended in the mornings and evenings. Also, customers were able to get instant ATM cards, and funds from their deposits would be credited either the same day or the next day. For fun, the bank offered free coin counting machines and gave customers free merchandise such as pens and even dog biscuits. Employees were carefully recruited and trained and competed for WOW! appreciation awards. Through all of these efforts, the bank has been able to reduce the costs of acquiring and retaining customers and deposits as well as its staffing costs. In a highly competitive industry, Commerce Bank created a value proposition with mass customer appeal and a business model based on some of the best practices of speed, convenience, and friendly service from the fast-food industry.
Background
Commerce Bank was founded in 1973 by Vernon W. Hill II with nine staff and $1.5 million. From the onset, Mr. Hill decided that Commerce Bank was not in the banking business but in the retail business, and created a business model that revolved around becoming a power retailer. Drawing heavily from his retail experience in fast food franchising, he leveraged important lessons from retailers that had transformed their own industry such as Starbucks and Home Depot. Best practices from these non-financial services companies offered unique insights to help Commerce Bank set itself apart in the financial services world.
Taking a different