Crm Rbc Financial Case Analysis

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Background: The Royal Bank of Canada using CRM and customer profitability tools to gain a competitive advantage in Canada's increasingly crowded financial services market. Key Issues: RBC financial, a full service bank in Canada is facing fierce competition from leading financial institutes and new niche-market entrants after deregulation, the bank is also struggling with its 7th ranking out of 8 among financial institutions in the bank’s internal value for money study. Mr. Mclaughlin, the VP of CRM and information management have several questions in his mind – • Having the real customer profitability numbers and using CRM tool, RBC know clearly about the customer preferences and needs, issue is what should RBC do with this…show more content…
How customer profitability is used for marketing decision making? After profitability and lifetime values are determined, these measures are included for determining customer decisions for - Customized Marketing Campaign Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy. Establishing Service Levels RBC also determined a set of customer treatment strategies using the customer segment categories, customers category would determine the length of wait and type of customer service representative the customer talks to. Product Design & Pricing The CRM system used customer profitability and future potential calculations to give pricing parameters to account managers to determine how to price products depending on the customer. Packages vs. Fees Another use for customer profitability data was to inform in the debate over whether to change for services using a flat rate package or charge fees based on the amount and type of transaction the customer was generating with the bank. Q3. Explore alternative decisions and guidelines for Riech and McLaughlin? Calculation of future LTV and profitability: (page8, para after exhibit4) 1) Assume that current
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