Customer Satisfaction management systems: Managing the customer profitability dynamics
- Most banks track the ‘CNR’-customer net revenues-of their customers as opposed to the profitable opportunity for patronage they provide.
- By adopting a one-size-fits-all approach to engaging with customers, the front-line executives often end up with fewer ‘Apostles’ who could otherwise provide more referrals and offer a larger share of their wallet to the bank.
- One Nationalized bank caused greater synergy within the policies, supporting their program for wealth management that yielded higher and more profitable customer relationships.
- By reorienting the customer engagement strategy to yield more ‘Apostles’, the bank raised the per capita profitability from the current base of customer relationships and minimizing the ‘non-performing ‘relationships and NPA’s (Non performing assets) to the few that were considered permissible.
