Customer Relationship Management in financial services

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Abstract

Today, financial establishments seem to compete with another to stay on top with try to use the best technology, good product and services to satisfy customer needs. Among another banks which are trying to do similarly ways. Customer satisfaction becomes crucial. Customer Relationship Management (CRM) has been using by many companies to have long lasting relationship with customer while maintaining and increasing revenue in business. This paper will focus on Lloyds TSB Bank which being on top bank in the UK since 1995. Lloyds TSB Bank still maintain customers by give customer a good services and also analysis data from both sides, internal and external that relate to CRM implementation. Therefore, it will be using The QCi custumer management model to analysis how Lloyds TSB apply CRM.

Literature Review

Customer Relationship Management is used by many companies and businesses to gain the number of customer and customer satisfaction. This paper is focusing on Lloyds TSB Bank experience which the bank has done so far. First view is provided by Lloyds TSB Bank official website. The contents are focused on the developing customer relationship which many articles that attention of CRM, for example, Understanding the Antecedents to the Adoption of CRM Technology by Small Retailers: Entrepreneurs vs Owner-managers. ( Peltier, J.W.;2009, Schibrowsky, J.A.;2009,Yushan, Z;2009) This article mention on adopting CRM technology in small business. Another interesting article is Building a CSF framework for CRM implementation by Rahimi, I and Berman,U. in 2009. The article represent success and failure of CRM system. This project analysis of questionnaires and study of 20 companies. These articles are useful and help to understand how does CRM work. A number of online articles have studied in order to widen the view, for instant, www.crm2day.com, www.wikipedia.com, www.inc.com and www.smallbusiness.com

The text book named Customer Relationship Management second edition by Buttle,F. is mainly used as a core reference book for this paper. Many critical points of view such as why companies want relationship with customers and Value from channels.

Introduce of Customer Relationship Management:

Undeniably, one of the most important parts in business is customers. Every company tries to satisfy customers, keep observing for customer behaviour to analyse what customers need. CRM is one of the strategies that help company retaining and increasing the number of customers. Retaining customer for long time is crucial. Organizations are interesting in CRM and have been using in many firms. CRM is the way to maintain and attempt to attract customer value and build to long life time customer value, therefore CRM is learning to build a relationship with customer. CRM is a strategy of business and also client which strategy is not for high cost of technologies. Business is not necessary using exceed of technology if they have technology that can adopt to use in the future because it will increase the cost of asset. The business should think about adopting more than changing to new technology. CRM is part of everyone in company and utility. And also anticipate share market price. Company should take a good care of internal and external customer. Developing CRM efficient system has basic of services is realized that every customer is important and not all customers are equally. CRM strategy is that company be able to change customer from general customer to be loyalty customer. It will help business success in long term.

The definition of Customer Relationship Management:

Customer Relationship Management is the planning that company decides to reduce cost of expense and increase profit by solidifying customer satisfaction. CRM brings information from customer in real time. This allows customer facing employees in such areas as sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and up selling opportunities to target marketing strategies to competitive positioning tactics. (www.destinationcrm.com)

The QCi Customer Management Model

(http://www.dmu.ac.uk)

According to The QCi model, first of all, companies have to get all information from every customer to make it easy to contact with customer. In that way when company receive information they need to have a technology to support the system to run in the processing of management. Company set up employees to organise what customer need or how to satisfy customer as much as company can. When the planning exists to the market, company has to focus on how to retain the customer as a royalty customer.

Lloyds TSB bank background

As an international bank, Lloyds TSB Bank expanded in many countries with a strong connection in around Europe and South America and Lloyds TSB Bank also has their owned business- Abbey Life Insurance. By now, Lloyds TSB Bank has offices more than 30 countries, such as Argentina, The USA and New Zealand.

In 1765, John Taylor and Sampson Lloyd set up a private banking in Birmingham, England. After that the sons of the original partners followed by establishing a bank in London. Finally, this became into the Lloyds Banking Company. In over the year, Lloyds Bank expanded and made some fifty take over. From 1917, two companies in France were run jointly as Lloyds and National and Provincial Bank. Lloyds bank bought full ownership and it became Lloyds Bank Europe in 1955. With a strong connection with South America, Lloyds Bank bought the controlling of interest in Bank of London and South America (BOLSA) in 1918. In 1995, Cheltenham and Gloucester joined the Lloyds Bank Group in the same year in December, Lloyds Group merged to TSB Group to form Lloyds TSB Group plc and in September 1996, Lloyds Abbey Life became a wholly-owned of Lloyds TSB Group.

( www.lloydstsb.com)

Lloyds TSB bank’s Customer Relationship Management:

Lloyds TSB bank increased the way that can help customers contract with bank and also try to keep looking at relationship with customers. Not only that, the number of social-media and digital has increased which means the bank provided a good value for customer. Lloyds bank continues to employ the campaign which purpose to transfer to consumer that they can rely on the brand during the hard time. Lloyds bank also advert which highlight the way in which bank can help customer, such as mobile banking and text alerts. They will also open on Saturday. Lloyds bank spent money to buy software to manage and consolidate customer communication. It is shown that Lloyds TSB bank focused on CRM strategy to develop customer service. Lloyds TSB has signed a $24m contract for electronic customer relationship management technology from Chordiant software. The technology will be deployed throughout the bank’s offices and used to manage and consolidate all customer communications over its WAP, digital TV, Internet and call centre channels as well as through its branches. (www.silicon.com) Lloyds TSB bank also has another channel to service customers such as online for business to your finance. The service available from early morning until midnight and seven days a week which customers have plenty of time to contract with Lloyds TSB bank. The other option is Lloyds TSB bank serve customer by send customer a balance account to customer’s mobile phone. These services show that Lloyds TSB bank has many options to be chosen by customer. The more channels that companies have, the more customers they will get. Among the competing with the other banks Lloyds TSB bank has a good opportunity to maintain and increase revenue by given many choices for Lloyds bank’s customer. Lloyds bank also use camera software to investigate the problem with long queue. Lloyds bank installed the camera to moniter customer queuing at branches. Branch personal reported that they saw result of their improved customer servicing has around a 10 point increase in customer satisfaction and 7 point improvement in customer retention in additional to improved branch sale and marketing activities. (Tower Group Take Away research). Lloyds bank also promotion when customer buy home insurance they will get cash 50 pounds back. For persuade customer goes online they provide discount for customer who buy insurance form online. The customer who like to travel, Lloyds bank offer Airmiles Duo Credit Cards which when customer buy or balance transfer with the card they might get free flight in three months. Lloyds bank constantly send leaflet to customer every months which they can alert customer to use their product.

Conclusion

In this Customer relationship management study that has chosen Lloyds TSB bank as a model as it has been running business by using CRM strategy planning. The result shows increasing of customer satisfy which relate to maintaining revenue. The bank is following theory of CRM strategy planning. The most outstanding task is Lloyds TSB bank tries to develop technologies to facilitate customers. As the result below show the increasing of relationship with customer.

( http://www.lloydstsb-annualreport.com)