Analysis of Credit Agricole Multichannel Mutual Bank - Assignment Example

Credit Agricole” – A Multichannel Mutual Bank Q1. How does Credit Agricole rely on its multichannel distribution strategy to keep growing? Credit Agricole Bank is the first banking group of France with 28% of the consumer market (Creditagricole, 2012). As the major financial collaborator of the French market and a key European player, the Credit Agricole support the projects of its customers in France as well as across the entire range of retail banking companies and related focused businesses around the globe, such as: insurance, factoring and leasing, asset management, consumer finance, investment and corporate banking. Two new innovations are videophone system and online virtual consultants (Efma, 2009). In its attempt to sustain the economy, the bank furthermore stands out by its innovative and dynamic environmental and social responsibility policy. Credit Agricole also features in top three of Novethic’s position of 32 largest insurance companies and banks in Europe in terms of responsible reporting and corporate societal responsibility. It serves 51 million customers and has its presence in almost sixty countries (Creditagricole, 2012; Eastnets, n.d.). The aim of the paper is to focus on the multichannel distribution strategy of Credit Agricole and also to evaluate whether the mutual organization of the bank is an advantage or a drawback for it. The multichannel distribution channels are the mechanisms through which the products are offered to customers either directly or through intermediaries (Chaffey et al, 2008). Direct distribution aided through the internet led most of the companies to implement a strategy of multichannel distribution by making use of both non-integrated and integrated channels concurrently (Geunes and Pardalos, 2006). Generally, companies pursue an approach to launch several distribution channels to distribute the market risk at extreme end. Though, this is not favourable, especially for those distribution channels which involve high volatility level. High volatility weakens the accurateness of forecasts which leads to high costs of supply chain (Sieke, 2008). Credit Agricole has an exceptionally active communication and multichannel distribution strategy. For example, 8 of its local banks, which were grouped collectively in GIE (“Groupment d’Internet Economique”, a group for developing business interests), have build up a common instrument in order to administer their multichannel campaigns of communication. The objective of this campaign is to send a modified message or commercial offer to the customers, which they can utilize through various appropriate channels such as mail, website, call-centre advisors, branch advisors, SMS or email. In order to keep growing, Credit Agricole rely on its multichannel strategy by offering the innovative service of ‘web call-back’ where the customers have just to click on the button on website in order to be called back through the bank. It also enables the consumers to make use of electronic signature which is a great advantage for the consumers. The multichannel distribution approach which is adopted by Credit Agricole bank is the “Click, Mortar, and Phone” model, aims to unlock these channels to provide customers the chance to communicate with their bank through the most adapted channel (Ireland, Hoskisson and Hitt, 2011). The branch should constantly be informed about the actions of customers to turn the contacts into trade/sale opportunities. The advancement of communication and information technologies also facilitates Credit Agricole to develop various distribution channels. Q2. Do you think the mutual organization of the bank is an advantage or a drawback? Compare this with other banks you know. The mutual organization of the Credit Agricole Group faces many drawbacks. Given the shared organization of the bank, all products and services which are sold in regional banks are not identical. Moreover, when the customers go on a trip or holiday in other area of France, they discover that they often become nonexistent. Since the bank do not encompass the similar information system, the Credit Agricole customer of France may face problems in withdrawing cash from the Credit Agricole Midi-Pyrenees branch, if they do not have the card which is to be used in the ATM of Credit Agricole Midi-Pyrenees branch. This situation was taking place over the past, as the total number of local banks in Credit Agricole Group drastically declined i.e. from ninety four in the year 1988 to thirty nine in 2007. Multichannel was originally regarded as a basis of cost reductions and productivity. The multichannel distribution of the Credit Agricole Group faces many drawbacks. First drawback is that most of the customers were complaining that the new channels mainly the call centres mean to reduce their communications with their area office and same reaction is also for the ATMs, because it prevents the clients and customers from coming into the branch. Second drawback which is associated with the development of multichannel is the increasing use of internet by the customers in order to compare the prices, which raise the stress on service and pricing quality. When customers judge their individual bank with the competitors, then at that time relationship is not chosen over enhanced prices. In order to keep rising and face the behavioural evolutions of customer, Credit Agricole Bank began to provide new types of services to foster its relationship with the customers. As a result, it launched agencies of real-estate under a fresh brand named Square Habitat. Lloyds Banking Group is situated in United Kingdom which provides retail as well as financial services (Llyodsbankinggroup, 2014). The incorporated multi channel approach is based upon three main components: good communications, adaptable technology, and excellent accessibility. It has developed various channels in addition to contact centre facilities and the branch network. It offers kiosk, ATM, online, and mobile banking and also an express banker capability. Customers can also use the facilities of web-banking. So, it provides advantage to the customers through its multichannel strategy. In addition to this, the Lloyds Banking Group also assures to refund the money of customers in case they experience any fraud with their services of internet banking (Llyodsbank, 2014). Therefore, the mutual organization as well the multichannel distribution of the Credit Agricole Group faces many drawbacks whereas both the approach of Llyods Banking Group is an advantage for them. Q. 3. Analyse the problems Pauline and Louis encountered. How would you solve these dysfunctions? Based on this example, what can you say about customer satisfaction in a multichannel context? (i) Analyse the problems Pauline and Louis encountered. Pauline and Louis were the employees of Credit Agricole bank and Pauline is working for over twelve years in the bank. They planned to purchase a house and therefore Pauline scheduled a meeting with her financial advisor. She was disappointed when she came to know that he left the branch three months ago but was also quite relaxed because of the service quality of the bank and thus decided to meet the new financial advisor. So, she called the call centre to fix the appointment with Bernard; the new financial advisor. The employee in-charge of call centre had not properly scheduled the conference and Pauline had to wait for three days to meet Bernard. When they finally met, he asked her to come with the documents the next day but again he was not present the next day and Pauline learned that she would not get him for three days. After three days also she gets to know from the adviser of call-centre that Bernard was having a meeting with other customer and after knowing the situation of Pauline also, call-centre adviser rejected to help her. When she ultimately put through Bernard, she was a bit disheartened by the rate of interest. Louis and she tried to bargain but they could not have less than 5.2% plus insurance. Pauline thought that being a devoted customer would make some difference but it didn’t help. After some days, Pauline received a call from call-centre consultant of Credit Agricole on Bernard’s behalf that she intended to buy the residence in the coming months. She was astonished, first because the call-centre consultant didn’t know that she is in the procedure of taking a loan and second he was offering a rate of 4.8% plus insurance. She called Bernard and was very angry of being cheated by him but he explained that the 4.8% was reserved completely for the outbound promotional campaign of call-centre. However, provided the situation, Bernard has been allowed to propose the offer to her and also authorized to reduce 50% from the charges of loan management. This relieved Pauline, who was considering of leaving the bank. (ii) How would you solve these dysfunctions? Keeping myself in the place of Pauline and Louis I would not keep on waiting for so long to have a meeting with the bank financial adviser because it’s his responsibility to guide the customers regarding their loan procedure and would also oblige him to meet on the scheduled date. In case of cheating, I would file a complaint for his fraudulent practices. (iii). Based on this example, what can you say about customer satisfaction in a multichannel context? The adoption of “Click, Mortar, and Phone” strategy by banks brings the multichannel consumers to shift from store to website or vice versa throughout the various phases of their choice making process (Patricio, Fisk and Cunha, 2003). Most of the time, the multichannel context provide satisfaction to customers and sometimes it does not. Adding internet facilities to the usual physical channels lead to more accessible services for the clients or customers and also easy access towards the service. The combination of channels for example, the call-centres and internet provides the benefits of proximity to customers because it is used at home and also the advantage of availability and immediacy (Lefebure and Venturi, 2005). The only drawback is that sometimes the customers do not find it comfortable to do the conversation on phone if the call-centre advisers do not clearly recognize the problems of customers. Credit Agricole adopted the multichannel distribution strategy to provide customers the chance to communicate with their bank through the most adapted channel. The mutual organization of the Credit Agricole Group faces many drawbacks. Since the bank do not encompass the similar information system, the customers of one branch faces problems in withdrawing cash from other branch. However, the multichannel strategy as a whole provides satisfaction to the customers as it leads to more accessible services and also easy access towards the service. Reference List 1. Chaffey, D., Chadwick, F.E., Johnston, K. and Mayer, R., 2008. Internet Marketing: Strategy, Implementation and Practice. New Delhi: Pearson education India. 2. Creditagricole, 2012. Update A01 of the 2012 Registration document: Credit Agricole Group Financial Statements 2012. [pdf] Available at: < www.credit-agricole.com/en/content/download/.../Actu+A01+VA.pdf> [Accessed 27 Nov 2014]. 3. Eastnets, n.d. Credit Agricole Case Study. [pdf]. Available at: < http://www.eastnets.com/Libraries/PDFs/Credit-Agricole-CaseStudy2.sflb.ashx> [Accessed 27 Nov 2014]. 4. Efma, 2009. Innovation in the Multi-Channel Management. [pdf] Available at: < /Microsoft-EFMA%20Report%20-%20Innovation%20in%20Multi%20Channel%20Management.pdf> [Accessed 27 Nov 2014]. 5. Geunes, J. and Pardalos, P., 2006. Supply Chain Optimization. Heidelberg: Springer Science and Business Media. 6. Ireland, R.D., Hoskisson, R. and Hitt, M., 2011. Understanding Business Strategy Concepts Plus. United States of America: Cengage Learning. 7. Lefebure, R. and Venturi, G., 2005. Gestion de la Relation Client. Paris: Eyrolles Publication. 8. Llyodsbank, 2014. Llyods Bank. [online] Available at: < http://www.lloydsbank.com/online-banking/home.asp> [Accessed 27 Nov 2014]. 9. Llyodsbankinggroup, 2014. Llyods Banking Group. [online] Available at: [Accessed 27 Nov 2014]. 10. Petricio, L., Fisk, R.P. and Cunha, J.L., 2003. Improving Satisfaction with Bank Service Offerings: Measuring the Contribution of Each Delivery System. Journal of Managing Service Quality, 13(6), p.471. Read More