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The customer‐led bank: how to retain customers and boost top‐line growth

Matt Symonds (Partner with the global consultancy, Bain & Company, London, UK.)
Tim Wright (Partner with the global consultancy, Bain & Company, London, UK.)
John Ott (Partner with the global consultancy, Bain & Company, London, UK.)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 6 November 2007

4313

Abstract

Purpose

Banks have worked hard to improve their bottom‐line performance by focusing relentlessly on cutting costs. The effort made banks leaner, but essential as those efficiency gains have been, they did little to reduce costly customer defections. This article demonstrates that banks' long‐term growth and profitability hinge on their ability to attract and retain loyal customers and describes the key disciplines they need to master to become customer‐led organizations.

Design/methodology/approach

The article is based on the results of a global benchmarking survey of senior executives and customers at 30 major retail banks serving 170 million clients in 15 countries to ascertain what factors they saw to be most important to the success of strategies to promote organic revenue and profit growth.

Findings

The study revealed that the best‐performing banks garner the highest marks across the entire spectrum of managing the customer relationship. On average, banks that excel across all dimensions of acquiring and retaining loyal customers outgrow their peers and boost their return on equity.

Originality/value

Putting customer loyalty at the heart of their growth efforts requires banks to nurture the faithful core of their customer base and hone their skills for spotting and attracting the right new customers. The article describes how banks can design the right propositions by identifying target segments and crafting experiences to delight them, deliver on these promises by focusing the entire company on them, and use customer metrics to refine their products and services and develop organizational capabilities to delight customers again and again.

Keywords

Citation

Symonds, M., Wright, T. and Ott, J. (2007), "The customer‐led bank: how to retain customers and boost top‐line growth", Journal of Business Strategy, Vol. 28 No. 6, pp. 4-12. https://doi.org/10.1108/02756660710835851

Publisher

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Emerald Group Publishing Limited

Copyright © 2007, Emerald Group Publishing Limited

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