Hong Kong and Shanghai Banking Corporation - Case Study Example

Running Head: RELATIONSHIP MARKETING AND HONG KONG AND SHANGHAI BANKING CORPORATION Relationship Marketing and Hong Kong and Shanghai Banking Corporation in APA Style by Student's Name Course Name University 1) HSBC has a slogan. It is 'The Worlds Local Bank'. Explain how this can be justified. In other words, is this statement true If you were asked to act in HSBC's defense to justify their slogan, what would you say In 250 words, write your answer, linking it to Relationship Marketing. During 2002, Hong Kong and Shanghai Banking Corporation (HSBC) launches a new positioning strategy which is encapsulated in its slogan "The World's Local Bank." Recognizing the diversity of culture in the nations where it operates, HSBC ensures the satisfaction of every customer wherever he/she is in the world by launching its commitment in providing the products and the services that he/she needs. Through its ardent thrust in being "The World's Local Bank," HSBC highlights its devotion in building mutually beneficial partnerships with customers worldwide regardless of their nationality, race, belief, and culture (HSBC 2007). Supporting the international bank's new positioning strategy is its quest in understanding and delivering customer needs. In order to know this, HSBC asserts: "To truly understand a country and a culture, you have to be a part of it" (HSBC Website 2007). Having numerous branches scattered globally, HSBC opts to personalize the services being offered by opening up local banks all over the world, which are manned by local people. In doing this, the company establishes a lasting relationship with the customer as the international bank provides its clients with bank personnel who shares the same culture, value, and situation with them making it relatively easy for them to understand and relate to each other. It should be noted that conflicts in values and clashes in culture can hamper the emergence of a good relationship with a bank and its clients. HSBC puts a strong emphasis in local knowledge and uses it as a competitive advantage in attracting and retaining customers. Being a local bank doesn't mean that a branch is isolated from the HSBC system. Each of the company's local bank shares the innovation and ideas in the network. All of these advancements are geared in providing customer satisfaction all over the world (HSBC Website 2007). 2) HSBC manages to attract and retain their customers very well on a global level. How do they manage to do this Link your answer to the way they advertise (to attract) and to Relationship Marketing, specifically the topic customer retention. Attracting and retaining customers has been in the core of HSBC's operation which is highlighted in the company's high retention of customers in the global market. HSBC's effort in attracting and retaining their customers is in part because of their effort in localizing the products and services that they offer. The international bank manages retain customer because of its customized services which are tailored specifically to each of its client's needs. Retaining customers has also been possible because of the company's investment in a customer relationship management database which can be accessed by bank personnel when dealing with a client. The use of customer relationship management allows the bank to record the profile of a customer together with his or her potential banking needs. With this, the international bank retains customer through the identification and provision of his financial needs. HSBC has been able to employ a more targeted marketing approach because of its knowledge of its customer. The company also allows customers to access their account through different means by maintaining an extensive ATM facility, website, and telephone (HSBC Website 2007). Customer retention is also made possible by the employment of personnel which are very much attuned to customers' satisfaction. HSBC's recognizes that its products have an intangible component which is the quality of service that its staff offers. Thus, in order to retain customers, the bank trains its employees on how to build relationship with the customers from the time they inquire about the company's products, enter the bank premises, and after the product has been provided. The relationship continues as each staff still calls customers regarding their potential needs (HSBC Website 2007). 3) How does HSBC stand out from their competitors in retail banking Talk about some of the services/products they have to offer such as Premier Banking. The success or more survival of a business organization is first and foremost a factor of the product or service that it offers to its target market. In the banking industry, HSBC stands from its competitors not only because it is able to market itself efficiently but due to its commitment in bringing products of high value to its customers. An example of HSBC's products which has gained wide recognition and acceptance by clients is its Premier Banking. Premier Banking has been launched as the company's premium financial product which allowed clients to get a universal service wherever they are located. This product features the following: "internationally portable HSBC credit history; international account opening before leaving home; dedicated global personal relationship manager; pre-approved mortgages for overseas property; a single-view of accounts in all locations; free global money transfer between HSBC accounts; emergency help including cash at over 245,000 outlets across 200 countries; single global 24-hour helpline for customers and their families; banking services and lounge facilities across 35 countries and territories; and access to international wealth management products and professional investment information" (HSBC 2007). With the quality of product and services that premiere banking offers in the international market, HSBC makes its distinct which is left unmatched by its competitors. It should also be noted that HSBC is widely recognized because of its ability to think out of the box. The company has been in the forefront of offering Islamic banking in the United Kingdom in recognition of the profitability of Muslim clients. Also, when all its competitors have pushed for interest rate rivalry, HSBC offers interest rebates instead which has become very profitable. 4) How successful is HSBC's Corporate Social Responsibility programs and how does it relate to Relationship Marketing. The importance of being a socially responsible business organization is now stressed in the current global business arena. Each company now recognizes that its aim should not only be to maximize its bottom line but also creates a reputation of being socially responsible. Thus, HSBC currently enhances its corporate social responsibility efforts by engaging in activities and programs which boosts the well being of the community where it operates. This primarily covers growing sustainably, that is, pursuing profitability and business growth without harming the nature and society but instead promoting the quality of the environment and uplifting living conditions. HSBC highlights its global resourcing a positive contribution to social and economic development because it is able to hire local employees thus, lessening the problem of unemployment. During the year 2005, the company accomplishes three CSR thrusts including carbon neutrality, environmental risk guidelines, and primary and secondary education. HSBC in its CSR report in 2005 stresses its success in these programs. Being socially responsible business organizations is now a key in relationship marketing. It should be noted that in the present business arena, customers concerns have shifted from the products of the corporation but in their image as well. This is especially true in more affluent nations where customers prefer to do business with more socially responsible business entities. Thus, maintaining relationship with customer also means understanding their perceptions and doing what is important to them. HSBC has been right in pursuing projects which makes it more socially responsible. 5) Write a conclusion on the above. Relationship marketing has been in the specific objectives of HSBC as stressed by its certain strategies and operations. The company ensures that it builds a long-term relationship with its clients by capitalizing on its local knowledge and its information about individual customers. Part of this is HSBC's investment in customer relationship management through advanced technology. The international bank stands out from its competitors due to its superior products, excellent service, and thrust for corporate responsibility. The analysis above shows that relationship marketing is multi-faceted and the company's success in it is through its effort in aligning its current resources and investing in resources to create value for customers throughout their lifetime. References HSBC 2007, Wikipedia: the Free Encyclopedia, Retrieved 21 May 2007, from http://en.wikipedia.org/wiki/HSBC HSBC Corporate Social Responsibility Report 2007, HSBC Website, Retrieved 21 May 2007, from http://a248.e.akamai.net/7/248/3622/de0b031c518c46/ www.img.ghq.hsbc.com/public/groupsite/assets/csr/hsbc_csr_report_2005.pdf HSBC Website, 2007, Retrieved 21 May 2007, from www.hsbc.com Read More