RBC Financial group
LESAGE Quentin SUBIRANA Paul
[CUSTOMER PROFITABILITY AND CUSTOMER RELATIONSHIP MANAGEMENT AT RBC FINANCIAL GROUP (ABRIDGED). ]
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1) Evaluate RBC’s customer strategy.
Unlike most banks, RBC Royal Bank has well understood the need to leverage the economic value of customer information for many years. Since the late 1970’s, the bank has searched for and found innovative ways to use its customer data to improve its business performance and …show more content…
This new engine permitted once again to the financial group to develop a segmentation of its customers. This new segmentation was based on strategic predictive models (profitability client, risk, client vulnerability and lifetime value). The first objective of this segmentation was to create effective marketing campaigns.
To sum up.
RBC financial group based its customer strategy on several things. First of all, its segmentation strategy; the company developed during all these years a way to create different segments of customers. As we saw, the personal retail clients are segmented into different segments based on attitudinal and behavioral factor, current and potential profitability, expected purchasing behavior, vulnerabilities and channel preferences. This capacity to segment its customers allowed RBC to create a customized consumer relationship. The ultimate aim of this strategy is to be one to one marketing and to offer individual treatment.
Secondly the Company based its success on Data Storage Technology. In fact, during all these years the Canadian bank developed different tools and engines in order to collect consumer information to treat them and to transform them into useful elements for the company. For example the “current profitability calculating process”, this new engine permits to the group to anticipate the future investments and to know which of its segments are profitable for