INTRODUCTION TO CUSTOMER MANAGEMENT

On completion of the Customer Management module, candidates should be able to: 

  • Understand how a bank’s customer-centric business model, discussed in the Business Models module, is put into practice to deliver its strategy through a customer management target operating model;
  • Understand the importance of a customer-centric culture in delivering the operating model;
  • Understand key roles in a customer-centric retail bank;

Defining Customer Management

“Customer Management is managing the relationship between an organisation, its people and its customers that is aligned with its strategy and business model. This relationship defines its ability to gain, grow, and keep valuable customers. An organisation achieves this through a deep understanding of customer needs, behaviours and value with the ability to engage specific customers or segments in a way that optimises their satisfaction and develops a relationship of trust and loyalty.”

Smarter Way Mentors Limited 2021

In the Business Models module, different business models have a different outcome for the organisation. If a bank selects a customer-centric business model, then it must align the way it manages the relationship between itself, its people, and customers with its chosen strategy and business model. It cannot operate customer-centric in its Marketing and Customer Management departments and operate product-centric or channel-centric elsewhere and expect the results from a customer-centric strategy.

A product-centric or channel-centric strategy and business model requires a very different business alignment, and this module would be called ‘Product Management’ or ‘Channel management’ and have a quite different definition and content. The Business Models Module outlined some of the key characteristics of each of the strategy and business model.

CharacteristicProduct-centricChannel-centricCustomer-centric
OrientationDesign the best product on the marketOffer the most channels on the marketFind solutions to customer problems
MarketingPush via direct marketingPush via channel banners,Event & life-cycle trigger and a hierarchy of products within segments
ProcessesDefined product-by-productDefined by channel capabilityBalance between customisation and complexity through a matrix of actions and options based on the customer
Organisational structureRigid team silos, friction between teamsRigid team silos, friction between teamsCross-organisational teaming, low friction
MetricsProfit & market shareCost & channel efficiencyMutual value measures