Commonwealth Bank CRM - Case Study Example

Commonwealth Bank CRM Name: Course: Institution: Date: Executive Summary This report offers an analysis of consumer relationship management systems. As such, the report seeks to explore the extent, nature and approaches through which the consumer relationship management theoretical aspects are applied in current global market. As such, the report adopts the Commonwealth Bank case study, as one among the large and most influential Australian banks. The report analysis establishes that the organizational consumer relationship management system relies on the consumers buying behaviour as well as their decision making model. Among the established approaches include technology application, consumer niche focusing, as well as acquisition expansion strategy. In summary, the report offers key strategic recommendations through which the organization can increase its overall consumer relationships management systems. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Consumer Relationship Management Systems 4 2.1 Technology Application 4 2.2 Consumer Niche Development 6 2.3 Acquisitions 8 3.0 Recommendations 10 4.0 Conclusion 10 References 12 1.0 Introduction The Commonwealth Bank of Australia, in one among the largest banks in the economy. Over the years, the bank has evolved both in its operations, management as well as ownership structures. Initially, the bank was a statutory corporation under the Australian federal government. However, in a bid to increase its efficiency as well as promote its expansion strategy, the Commonwealth restructuring Act of 1990, converted the bank from a statutory entity to a public entity. The organization privatization process was completed by 1996. Subsequently, the organization revolutionized its operations both in consumer service, technology adoption and incorporation as well as geographical expansions to strategic areas with banking market gaps such as Asia. Currently, the organisation categorizes its consumer relationships and services as one of its key strategic competitive edges (“Commonwealth Bank”, 2014). This report evaluates the organizational consumer relationships and management system outlining its key features and merits to its overall market objectives. 2.0 Consumer Relationship Management Systems 2.1 Technology Application Increased global changes in the market have in the past increased the overall financial industry competition levels. As such, organisations have been required to apply innovative operational structures. One among them is efficiency and reduced service wait time for the consumers. Such an approach is applied through technology use. Chuang, Nakatani and Zhou (2009) conducted a review, to establish the nature and extent of technology application on global organisations today. The review established that organisations with increased technology application through systems such as enterprise management systems and the consumer management systems, registered increased performance and success in the market. As such, the review established that technology application has a direct impact and relationship to consumers’ management in the market. As such, the study concluded with a recommendation for technology application in consumer management programs. The Commonwealth Bank of Australia applies this concept through increased technology use in its operations. One of the key strategic applications of consumer management through technology was the centralization of the organizational consumer database. In this regard, the organization centralized its consumer’s information such that the consumers could access services from across any of the organizational branches. The development of this electronic consumer data transfer was an imperative step towards increased consumer satisfaction. Therefore, this report concludes that the centralization and integration of the back office processes served as a critical and vital consumer relationships establishment and establishment tool (“Commonwealth Bank”, 2014). In addition, the Commonwealth Bank automated a majority of its services. For instance, some of the strategic and revolutionary automation services were the introduction of the Net Bank, an online banking platform. Through the platform, the organization increased its overall consumer service through the 24 hours service platform. In addition, as Pikkarainen, Pikkarainen, Karjaluoto and Pahnil (2004) argued on the merits of online banking platform, consumers’ convenience and satisfaction is increased through banking and accessing of the associated services at their own convenience. In this regard, the bank increased its overall consumer satisfaction and relationships enhancement through their increased services convenience and flexibility. Moreover, the adoption of the online banking platform enabled the organization an opportunity to acquire consumers’ data through the established log in profiles, it is based on these profile information that the organization could email and inform the consumers on the existence of organizational products they could be interested in. The establishment of communication channels with the consumers is one strategic relationships management aspect. In this case, consumer communication plays a significant role in establishing their needs and the subsequent development of ideal organizational consumer management strategies. Through appropriate communication and channels, consumer satisfaction and relationships improvement is enhanced. Therefore, through the application of this approach, the Commonwealth Bank increased its overall success possibility opportunities in managing its consumers both domestically and internationally. As such, this report concludes through the application of profile data and cache use technology on its online platform, the bank improved its consumer management systems through appropriate strategies development such as the development of the delivery of total capital services to the bank institutional consumers, an emerging yet volatile consumer segment. 2.2 Consumer Niche Development Consumers decision making model is influenced by arrange of external factors. In this regard, the process has five distinct stages namely the need recognition, information search, alternatives evaluation, purchase and post purchase stages respectively. In order to influence consumers as well as establish lasting consumer relationships, they should appropriately identify the respective consumer decision making stages and subsequently develop matching consumer management systems. In this regard, Bell (2011) conducted a study evaluating the relationship between organizational consumer relationship and management systems to the consumers’ decision making stages. In its analysis, the study argued on the existence of a relationship between the two test variables. In this regard, it held that the consumer decision making process served as the independent factor, while the relationship and management model emerged as the dependent variable. In this regard, the study concluded that for organisations to develop relevant and appropriate relationship and consumer management models, a review of the consumer decision making process and stage was imperative (Hoffman, Bateson, Elliot & Birch, 2010). An evaluation of the Commonwealth Bank of Australia establishes that the organization applies this theoretical perceptive. In this regard, the organization has over the decades, especially since its ownership change in 1990 changed. In this case, the organization manages and retains its consumer base through the development of innovative products. Consequently, the organization applies the push demand approach to market the products. In essence the corporation focuses on the need recognition decision making stage. Under this approach, it conducts and evaluates market analysis surveys, reviewing the existing and potential market trends. Consequently, the organization develops appropriate proactive products that the market is likely to demand into the future. Then, a fierce marketing campaign is rolled out to introduce the products into the market as well as initiate the products demand. Instances of the application of this approach in customer management and relationship development and retention are the famous organizational 2004 restructuring. Through its restructuring, the organization developed a unique bank from the previous private client service function. The unit was developed in a proactive approach to cater for the high net customers. Through the establishment of such an independent unit in the market, the organization proactively introduced its net consumers into increased exclusivity in their financial services delivery. Moreover, through the diversification, the organization ensure that the regular consumers received their desired attention and care form the employees rather than focusing a major organizational workforce to the high net consumers. As such, the corporation increased its overall focus and consumer satisfaction through increased consumer concentration and attention to both high net and regular consumers alike (“Commonwealth Bank”, 2014). The proactive approach served as an imperative tool into enhancing and promoting organizational consumer satisfaction and subsequent relationship management enhancement. 2.3 Acquisitions One of the approaches and practices adopted by the bank to expand its consumer base and services to their consumers, the bank adopted the expansion strategy. Milner and Rosenstreich (2013) argued on the role of organizational expansion strategies to increased market performance in the market. In this regard, the study established that through expansion strategies, organisations expanded their resources and capital bases, thus promoting their ability to retain and support their competitive edges (Hoffman, Bateson, Elliot & Birch, 2010). The Commonwealth Bank of Australia was cognizant of this fact when it initiated its expansion potential. In its strategy, the organization has expanded its influence into the Asian market through business and corporate oriented products and services. Moreover, the organization has specifically expanded through acquisitions. One major example for the Commonwealth Bank of Australia acquisition is in the case of the Colonial group of companies’ acquisition. Through this acquisition, the organization acquired increased capital resources as well as products diversity. On one hand, increased capital base enhanced the promotion and elevation of organizational services standards in the long run, a virtue aimed at improving their respective consumers’ satisfaction. On the other hand, the organization acquired products diversity through the acquisition of the investments and insurance ventures and services under the acquisition company group. With increased consumer products, diverse from the banking service products increased the organizational influence on the consumers through products diversity. Day (2002) argued on the merits and role of consumer diversity products and organizational business models. In this case, the study established on the existing proportional relationship between organizational products diversity and consumer satisfaction. As such, it established that organisations with diversity programs in the market encountered increased consumers satisfaction. This can be explained through the meeting of consumer needs as well as supplying them with additional services instead of consumers seeking the services elsewhere (Hoffman, Bateson, Elliot & Birch, 2010). In this regard, the Commonwealth Australian Bank applied concept under acquisitions of the colonial company group. Later on, in 2002, in a bid to tap into the gains of the diversity program, the organization renamed the investment and insurance decisions as the wealth management. Through the renaming and the associated management and administration changes effected, the organization successfully integrated the products with its core banking services. Therefore, based on this analysis, it is apparent that through acquisitions, rebranding restructuring and re-orientation of organizational services, the Commonwealth Bank attained increased consumer satisfaction levels. As such, this report concludes that the organization applied and continues to apply the acquisition approach a consumer management system for satisfaction and long term relationships establishment tool (“Commonwealth Bank”, 2014). Evidently, the approach gained the corporation an increased consumer base, as evidenced by the support services and products returns on investment levels. 3.0 Recommendations Based on the established consumer management and relationships management strategies and approaches, this report concludes that despite their success, the strategies remain insufficient. Consequently, this report recommends a series of strategic consumer relationship management approaches. The recommended initiatives through which the Commonwealth Bank of Australia can improve its consumer systems are as listed below: Develop a consumer management system to track consumers operations both physical and manual-the current system mainly focuses on the electronic operations Share established information with the respective consumers to facilitate feedback flow in the relationship management. Ensure increased market survey to establish consumer behaviour changes and subsequently develop appropriate relationship enhancement strategies Apply unique relationship management systems for diverse consumer segments in order to increase overall consumers’ loyalty 4.0 Conclusion In summary, the report focuses on the concept of consumer relationship management system. In this regard, the report evaluates the various features, application and functionality of the relationship management system. As such, in order to offer a practical approach on the topic, the report evaluates the Commonwealth bank of Australia. The bank, initially a statutory organ, was offered for public ownership in 1990, a move that radicalized its change and adaptation system. In this regard, the bank initiated a range of strategies and management practices aimed at establishing and retaining existing consumer base relationships. As such the report evaluates concepts under technology application, consumer niche development and acquisitions as among the key adopted consumer relationships management systems and practices. On one hand, a review of the technology application outlines the establishment of a consumer management system role n increased and improved organizational communication. On the other hand, an evaluation of niche establishment and focus reveals the role of specificity in consumer needs concern addressing. In this case, the report establishes that the development of innovative products proactively eliminated consumers segregation and discrimination based on financial capabilities. Finally, an acquisition analysis establishes that the organization has diversified its product base form the traditional banking services in a bid to increase its consumer’s loyalty and satisfaction. References Commonwealth bank, (2014). About Us. Author. Retrieved from Ta-Tao Chuang, Nakatani, K., & Zhou, D. (2009). An exploratory study of the extent of information technology adoption in SMEs: An application of upper echelon theory. Journal of Enterprise Information Management, 22(1), 183-196. Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online banking: An extension of the technology acceptance model. Internet Research, 14(3), 224-235 Bell, H. A. (2011). A contemporary framework for emotions in consumer decision-making: Moving beyond traditional models. International Journal of Business and Social Science, 2(17) Milner, T., & Rosenstreich, D. (2013). A review of consumer decision-making models and development of a new model for financial services. Journal of Financial Services Marketing, 18(2), 106-120. Hoffman, D., Bateson, J., Elliot, G. & Birch, D. (2010), Services Marketing: Concepts, Strategies and Cases, Cengage Learning Australia Day, E. (2002). The role of value in consumer satisfaction. Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 15, 22-32. Read More