The Banking Industry and Customer Research

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The Banking industry and Customer Research Discussion Given the competitive atmosphere in banking and the need to interest and retain clients, banks rely strongly on client's satisfaction and customer loyalty. This is particularly so given today's slowing industry growth and tremendous pressure to maintain and hold onto one's business. Traditional banks also today face competition from online banks that can afford to offer customers attractive deposit products at low rates and that provide attractive interest rates. Aside from that, traditional banks face competition, too, from non-banks, such as a Wal-Mart, that open banks within their stores. For all these reasons and more, the reputation and success of traditional banks directly hinges on the extent to which they manage to retain their client's services and please him to the extent that he will refer others to the bank. The better then that the bank knows their individual clients and factors that they seek from the bank, the better then will the bank succeed in pleasing these clients and attracting others. Customer research, ipso facto, is a significant part of marketing in terms of enabling the bank to maintain and enhance its portfolio. Customer research is all the more effective when it characterizes an open door policy with the bank and when it uses inbound marketing to reach customers outside the bank. In fact, given that banks have a tough time to differentiate themselves from one another, they rely heavily on
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