Contents

Introduction

Defining Customer Management

Core Capabilities

Manage the relationship between the bank, its people and its customers

Customer-centric culture

            Key roles in a customer-centric retail bank

Ability to get, grow and keep valuable customers

            Organise around customers

Have a deep understanding of customer needs, behaviours, and value

            How a bank achieves a deep understanding of its customers

            Prospects and customers

            Customer Value

            Segmentation

            Gathering customer dreams, problems to be solved, and jobs to be done

            Insight to Hypotheses to New Propositions

            Using technology to gain a deep understanding of customers

Engage specific customers or segments

            Deploying resources

Optimise customer satisfaction and develop a relationship of trust and loyalty

            Trust and loyalty

            How a bank optimises satisfaction

Optimise Customer and Prospect interactions

Conclusions

Learning Outcome

On completion of this section, candidates will be able to:

1. 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;
2. Understand the importance of a customer-centric culture in delivering the operating model;
3. Understand key roles in a customer-centric retail bank;

You will be able to assess the operating model required to deliver a customer-centric strategy and identify a range of factors that would contribute to the success of a customer-centric approach.

In Customer Management Level I, we will lay the foundations by discussing what customer management is and the capabilities that a bank needs to put in place. In Customer Management Level II, we will discuss how the bank operates to deliver a personalised customer experience.

Introduction

The previous module, Business Models, described the differences between the three business models and showed how a customer-centric business model offers a solution for banks to build deeper, more relevant relationships with their customers to create mutual value for their customers and stakeholders. Strategically, it also builds a defence against changing customer behaviour and competition that keeps them relevant.

This Module will develop your understanding of how a bank’s customer-centric business model is put into practice to deliver the bank’s strategy.

In Customer Management Level I, we will lay the foundations by discussing what customer management is and the capabilities that a bank needs to put in place. In Customer Management Level II, we will discuss how the bank operates to deliver a personalised customer experience.