Recommendations

Recommendations

• Direct marketing campaigns have to be developed, in which we can educate customers with more benefits they get out of particular product.
• Personal assessment in case of exceptions, as they occur rarely. Should try to fit them in to the existing system by analysis. (Such as niece’s case)
• No switching cost for customers will be there if a new platform of bill payment system is introduced with no fees, so that it will also reduces burden on bank’s ABMs. The customers can be incentivized to go for a cheaper channel to pay bills.
• The volume of transactions should help in deciding the pricing of fees. It can be divided into groups such as Low, Medium and High.
• Create groups for relatives and calculate profitability and CLV on group level rather than individual.
• To avail the service of ABM, there should be a minimum balance requirement in the account.
• RBC can acquire new customers by building new offerings based on the new customer’s preferences and Incentivize existing customers for referrals.
• The bank needs to keep the customers engaged with continuous product offerings that will satisfy the latent needs of the customers after acquiring the customers, and thereby increasing the profitability for the bank.
• RBC can provide a personalized solution by launching a campaign – “Always with you” to register the feedback of the customers who have faced any problem with the bank. Customer just has to send a “Sad Smiley” to a toll free number from his/her registered mobile number.
• For flat rate vs. fee per transaction:-

• Low volume customers should be given the product on usage fee basis to at least cover the costs
• The medium volume customers should be suggested to pay one time flat charges calculated based on total costs in providing product and services. However, this should be limited up-to a maximum usage of value (x). Above which they pay fee per usage.
• The high volume customers get a premium but flat one-time charges, which are usually higher than what medium level customers pay.