Crm Rbc Financial Case Analysis

CIBC has focused its core business on retail and business banking, wealth management, and whole sale banking. They have shown a proven track record of providing there customers with financial services and advice through a group upwards of 1100 branches worldwide. Strategies CIBC has portrayed is to continually find new ways to enhance the experience of the client and to stimulate safe revenue growth. CIBC has put emphases on creating deep meaningful relationships with all clients, constantly trying new ways to improve service and sales prospects and to create relationships with new clients while retaining existing clients for a long period of time (CIBC).

The first step of developing a profitable customer relationship is to understand what factors may affect customers’ final decision making. As we known, the factors include previous experience, quality of objectives, the salesman, sale strategy, service, price etc.

A customer profitability analysis, when done right, shows the customers that are not only profitable but also those that are

Following the segmentation process, a target marketing strategy was implemented to select the most valuable customer segments.

In today’s competitive market, all customer facing organizations (including banks), have realized the importance of customer insight, to grow further. A good CRM strategy is a key factor to differentiate with competitors and create good branding among customer base. Any Bank that cannot leverage CRM, have failed to improve revenue and customer satisfaction.

In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing

The final group of strategically significant customers we call ‘cost magnets’. There are customers who absorb a disproportionately high volume of fixed cost, thus enabling other, smaller customers to become profitable. One oilseed processor, for example, has two major customers, a manufacturer of snack foods which buys oil in bulk and a retail multiple which buys consumer packs. Although they account for 60% of oil-seed processing time, they absorb 85% of fixed costs between them. Five steps to profitable relationships The five steps in the CRM value chain are customer portfolio analysis, customer intimacy, network development, value proposition development and managing the relationship. Although we don’t discuss them here, at each stage of the value chain there are concepts, tools and processes to help create and implement successful strategy. 3

The most important aspect of any company that is involved in medium to big projects, is the company’s relationship with its clients. It is so important that companies like BNSF Railways, which was awarded Customer Relationship Management Excellence Awards in 2006 by Gartner Inc. (Schwalbe, K., pp 56, 2010), boosted its sales by simply investing more in customer relationship management. To reinforce the importance of CRM, studies conducted by HUFS College of Business, Korea, suggests that implementation of a good CRM positively impacts the customer satisfaction (Adalikwu, C., pp 6684, 2012).

Another benefit the CRM software provides to the B2B company is that this tool can provide assistance with cost-saving solutions for the user and its company (Meredith, 2004). The I-CRM (intelligent CRM) system has the ability to report and tracks marketing trends and spending, which allow for the company to itemize and remain informed of the needed information to distinguish monetary occurrences (Spiller & Baier, 2012). The fact that the system is also useful for it timely and rapid service effects gives the company foreseen savings with a potential future issue with customers and the loss of their business. “It is shown that on average a customer acquisition cost can be higher than that of a customer retention cost (Santoso & Erdaka,

The cumulative impact of Customer Relationship Management (CRM) strategies throughout enterprises continue to illustrate how effective these processes, systems and technologies are for bringing the customers' concerns, preferences and needs into the center of a company's operations. The value of CRM is in changing how companies measure their performance from their customers' expectations, also quantifying the preferences and requirements (Mukerjee, Singh, 2009). Gaining customer insights through the use of CRM can also give companies greater insights into how they can continually improve e-commerce, Web-based self-service and better integrate their existing systems into new Web-based ones (Xu, Walton, 2005). With so much potential value to be attained through the use of CRM and its related technologies, there are a multitude of businesses adopting these technologies.

When we think about customer relationships, we have a tendency to think more on the lines of building a rapport with the customers for profit, but our ultimate goal should be for longevity profit and sales growth. In order to manage customer relations successfully, we should focus on the experience of the customer from start to finish. A process should be carefully thought out, and implemented to attract, interact and retain customers.

The paper on CRM roadmap introduces ten articles and describes the essence of each of those. The author presents eleven propositions on the known facts and potential pitfalls of CRM and also lists six recommendations [1]

Customer Relationship Management (CRM) systems allow companies to have an integrated view of each of their customers’ relationship so they can consider the best way to service them. All departments in the company have access to the same information because the CRM software combines all legacy information that creates silos in companies into one database. Laudon and Laudon (2015, p. 362)) state that a good CRM helps companies answer critical questions such as who their most profitable customers are, and what they purchase. This information can be used for marketing purposes to help companies reach their sales goals. The Bank can benefit from the operational side of CRM with the customer-facing application and the ability to service

study and rationale of the study are discussed in the first half. Then this chapter goes

4. Analyse critically how Customer Relationship Management (CRM) system can play an important role to increase profits for each of the organization.