Customer Relationship Management. Mini-project on the Halifax Bank

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Student 02972746                CRM

Customer Relationship Management

Mini-project

Halifax Bank

By Student 02972746


Contents

1.1 Introduction                                                                        3

Background Information                                        

2.1 The Organisation                                                                        3

2.2 The Market                                                                        3

2.3 What is CRM?                                                                        4

3.1 What is in place at the moment?                                                        4

3.2 Using CRM for Sales in the branch                                                4

3.3 Building a “Relationship” with customer in the branch                                5

3.4 Using CRM to tailor products according to customer value                        6

Analysis

4.1 Sales – Acquisition v Retention                                                        6

4.2 Building Relationships with customers                                                7

4.2.1 Mystery Shop                                                                        7

4.2.2 What customers said                                                                8

4.2.3 Moving from Transactional to Relationship                                        8

4.3 Customer Value                                                                        9

5.1 Diagnosis                                                                                10

5.1.1 Being Product Focused                                                                11

5.1.2 Trust Issues                                                                        12

6.1 Recommendations                                                                13

7.1 Summary                                                                                14

References                                                                                15

Appendices                                                                                17

Customer Relationship Management

Mini-project

Halifax Bank

  1. Introduction

Looking at customer relationship management at the Halifax bank as a whole would be a big job for anybody, which is why this paper hopes to gain an insight in to how customer relationship management at the bank is really put in to place at the retail level.

This part of the organisation is the part that genuinely has contact with the consumers, physical/verbal contact; which is why it is an interesting part of the organisation to focus on. The research conducted will be the interviewing of 4 sales staff, 2 branch managers, 2 ex-employees and surveying approximately 20 consumers. This research will be the main basis for the knowledge built in order to construct this paper.

The paper will research current Customer Relationship Management (CRM) systems in place at the moment and weaknesses that affect the efficiency and effectiveness, more specifically looking at cross selling and the overall objective of customer relationship management and recommending ways that it could be improved.

2.1 Background Information – The Organisation

On the 19th January 2009 Lloyds TSB Group plc completed the acquisition of HBOS plc and became Lloyds Banking Group plc, making Halifax part of the largest banking group in the UK; a group by where 1 in 3 of people in the UK bank (Lloyds Banking Group, 2009).

On the basis of “reputation and recommendation” the Lloyds Banking Group aims to be the best financial services provider in the UK (Lloyds Banking Group, 2009). Despite this, both Lloyds TSB and HBOS will continue to operate as separate entities for the time being.

In 1997 Halifax was its own brand and operated as the UKs biggest building society. Halifax then demutualised and became a bank, before merging with Bank of Scotland in 2007 to become a brand name in the HBOS group (Lloyds Banking Group, 2009).

Halifax as a brand is still the UKs biggest provider of residential mortgages and savings, which is probably because they have maintained a good reputation as a specialist in these areas from their times as a building society (Lloyds Banking Group, 2009).

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2.2 The Market

Many blogs and Medias suggest that the public do not trust banks to fulfil their promises and in the current economic crisis there is a general fear of bank failure and as a result a loss of consumer funds.

In response to this the highly regarded ‘Which?’ magazine has been advising savers to spread funds over a number of different banks (Telegraph, 2009). The reasoning behind this will be because at the time the FSA (Financial Services Authority) rules stated that only £35,000 of consumers’ money will be protected in each bank. This £35,000 is protected in ...

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