Customer Relationship Management Case ROYAL BANK OF CANADA
Developing and Implementing CRM Strategies Royal Bank of Canada
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A GLANCE LOOK OF RBC (Royal Bank of Canada) The Royal Bank of Canada is the leading financial services provider in Canada. It has a $ 165 million asset, $ 1 billion profit. The service from this company relates with a huge amount of customer, for their customer base reach over 10 million and 1.3 million of them already use alternative banking channel like internet or telephone as well. To deliver the service for RBC customer, they operate nearly 1400 branches and 4200 ATM. To satisfy their customers, RBC made an approach of developing new metrics and analytical techniques to provide one-to-one service. The approach started from 1978 when RBC decided to collect customer data while the first step of one-to-one marketing was taken during 1992 as the IT application was already at place. RBC new system s goal is to align sale, service staff and improve retention. In practice, the system was used by both back-office and front-office functions. After having reviews from the customer, RBC found some gap between their new systems with the customer e pectation shown as follows: System s Weaknesses 1) Not precise enough for relationship pricing, 2) Not providing measure of potential use, 3) Unable to measure performance. Customer Expectation 1) Being treated as individuals, 2) To have their needs anticipated and 3) To have the value of their business reflected.
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Therefore, new approach was needed in order to improve system s ability so it will fulfill the customer needs. To be able to deal with this issue, RBC especially Cathy Burrows was challenged on how to change the system and make it capable enough to deliver satisfying service. The approach should be made flexible, so it will allow profitability to be aggregated to user-defined levels as follows: y y y y Product and