Increase in liberalization of interest rates has intensified the competition. Bank’s wish for increasing profit: Banks have to increase their profits to create new markets, to protect and develop their market shares and to survive on the basis of intense competition and demographic chance levels...

UNIT 1 ? INTRODUCTION TO MARKETING A . Marketing ? Define marketing -Marketing is more than just selling and advertising activities -Marketing is the process of planning and executing the conception (product), pricing, promotion and place (distribution) (4 Ps) of ideas, goods and services to create exchanges (with customers) that satisfy individual and organizational objectives (needs)...

• Major losses in the bank’s personal checking accounts • Increasingly wanted value and personal service • Fierce industry responded to deregulation and new niche market entrants • Changes in banking regulations • Smaller banks changed their focus away retail banking or were acquired by larger banks • Deregulation of the financial industry allowed crossover between banking, trust, securities, and insurance which had been kept separate • Internet banking and lowering of protections for domestic banks allowing foreign banks to enter the market 2) • CRM system could allow its personal bankers to access a customer’s transaction history • Address, age, and account balances • All contacts the customer had at any company location, phone center, or Internet site • What level of service the customer qualified for, based on current and future profitability • What products the customer held at the time of the call • What products the customer was targeted/approved for by sales and marketing • How the customer responded to targeted direct marketing campaigns • Call centers, branches, and direct mail are critical to the customer experience • The consolidation of the regional sales and marketing groups meant that instead of calling regional offices for lead lists, branches received lists from the sales and marketing office in Toronto • Everyone had access to the “lead” list and it was available electronically • Account manager work was done more efficiently because they knew the customers needs 3) Why? • Needed more robust profitability measurement • Helped align the sales force around customer profitability and planted the seeds for the new customer-centric organization • To better understand customers for better decision • To find out about Lifetime value individually How? • They used aggregate information rather than actual data • Bank analyzed its customer base and distributed the customer profit over deciles • 20% accounted for 100% of its profit • Used 3 model “A” customers made the most profit, “B” customers made some and “C” customers broke even or lost money What? •

WAMU wants to provide their customers with the best customer satisfaction; therefore, they are giving instant deliveries to all the customers exactly what they want when they want it...