Open AccessImplementing Relationship Banking Strategies and Techniques and Improving Customer Value
Author(s) -
Yongsheng Guo
Publication year - 2018
Publication title -
finance and market
Language(s) - English
Resource type - Journals
ISSN - 2424-8401
DOI - 10.18686/fm.v2i2.980
Subject(s) - business , customer equity , customer intelligence , customer retention , customer relationship management , customer advocacy , marketing , customer to customer , customer delight , asset (computer security) , customer profitability , loyalty business model , customer satisfaction , customer lifetime value , computer science , service quality , computer security , service (business)
This paper identifies strategic concepts and practical techniques in relationship-banking andexploreshow customer value was improved and how relationship-bankingperformancewas measured and linked to relationship managers’ compensation. Grounded theory was adopted to collect and analyse data. 25 interviews have been conducted with relationship managers and corporate banking directors in 11 case banks and case banks’ quantitative data was used to support the propositions. It was found that customer relationship was seen as a valuable asset. Relationship Orientation and Customer Focus were evaluated by undertaking internal surveys and relationship management objectives were formulated and actions were proposed to improve Customer Value to the case banks. In the case banks Customer Information was collected through multiple customer touch points and integrated and analyzed.Customer Knowledge wasaccumulated and sustainable Competitive Advantages were built.Customer Perception and Customer Loyalty were measured externally.Customer Value and Risk Adjusted Return on Asset (RAROA) wereemployed to measure relationship banking performance and reward relationship managers accordingly. The interviewees perceived that relationship-banking performance could be improved in this dynamic learning process.