Crm Rbc Financial Case Analysis
Background:
The Royal 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 have several questions in his mind –
• Having the real customer profitability numbers and using CRM tool, RBC know clearly about the customer preferences and needs, issue is what should RBC do with this information?
• How can they turn unprofitable customers into profitable ones?
• Is there a way to enhance the Bank’ value in the eyes of the banking public?
• How can they put the while picture together and make decisions that work for both the Bank and their customers?
Reorganization around CRM
As given in exhibit2, segmentation done based on customers life stages and complexity of their financial needs –
[pic]
Key Grp: Low current value but many within these sub segments have potential to provide higher level of profit
Growth: Still growing their assets, and have high credit and financial advisory needs. Strategy – to retain, grow and consolidate the relationship.
Prime Grp: More mature customers in accumulation and preservation phases with significant potential for RBCFG offerings.
Q1. What are the key elements of CRM at RBC financial Group?
Initially RBC mktg team deployed a tool, the model worked as follows -
Customer Profitability and Potential Measurement
Aggregate Information rather Actual Data
For Customer Profitability measurement, the tool used personal banking data to measure the profitability that used aggregate information rather than actual data. Then using this data(of
The Royal 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 have several questions in his mind –
• Having the real customer profitability numbers and using CRM tool, RBC know clearly about the customer preferences and needs, issue is what should RBC do with this information?
• How can they turn unprofitable customers into profitable ones?
• Is there a way to enhance the Bank’ value in the eyes of the banking public?
• How can they put the while picture together and make decisions that work for both the Bank and their customers?
Reorganization around CRM
As given in exhibit2, segmentation done based on customers life stages and complexity of their financial needs –
[pic]
Key Grp: Low current value but many within these sub segments have potential to provide higher level of profit
Growth: Still growing their assets, and have high credit and financial advisory needs. Strategy – to retain, grow and consolidate the relationship.
Prime Grp: More mature customers in accumulation and preservation phases with significant potential for RBCFG offerings.
Q1. What are the key elements of CRM at RBC financial Group?
Initially RBC mktg team deployed a tool, the model worked as follows -
Customer Profitability and Potential Measurement
Aggregate Information rather Actual Data
For Customer Profitability measurement, the tool used personal banking data to measure the profitability that used aggregate information rather than actual data. Then using this data(of