This week’s discussion is a little different from what we’ve done so far.
This week, you will analyze a scenario and some related information to come up with solutions to a problem. There are no correct answers here; however, some answers may be better than others. I encourage you to be creative in your ideas and feel free to do research beyond the class materials.
Case Analysis 1 – Strategies for Customer Development
Customer development is the process of growing the value of retained customers. Companies generally attempt to cross-sell and up-sell products into their customer base while still having regard for the satisfaction of the customer.
Cross-selling, which aims to grow share-of-wallet, can be defined as selling additional products and/or services to an existing customer.
Up-selling can be defined as selling higher-priced or higher-margin products and/or services to an existing customer.
You’re the new Chief Revenue Officer for a mid-sized bank and you’re tasked with developing strategies for growing the share-of-wallet of your existing customers. Revenues from your customer base have remained flat for the past 3 years and you’ve been hired to find ways to reverse this trend.
Some Relevant Facts
The customer profile of your bank is:
- 60% Boomers
- 30% Gen X
- 10% Millenials/Gen Z
The market profile is:
Highly competitive, with low switching costs. All banks in the market offer similar products and services.
(Remember: Growing existing customers is cheaper than acquiring new ones.)
Your current value proposition is:
Come to us for all your financial needs!
How do you grow share-of-wallet in these circumstances?
Review the CRM technologies listed in Chapter 4 of your textbook.
- Which of those technologies might you use to implement customer development strategies to help increase revenue from your existing customers?
Explain your choice of technologies and how you would use them.
When responding to this post, consider the problem. Use your imagination and creativity to add more context to the problem if you like. You can make some assumptions in your response if it helps you answer the prompt, but please clarify what those are. This allows the rest of us to follow your logic and thought process when reading your response.
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