Implementing Relationship Banking Strategies and Techniques and Improving Customer Value

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Abstract

This paper identifies strategic concepts and practical techniques in relationship-banking and explores how customer value was improved and how relationship-banking performance was measured and linked to relationship managers’ compensation. Grounded theory was adopted to collect and analyse data. 25 interviews have been conducted with relationship managers and corporate banking directors in 11 case banks and case banks’ quantitative data was used to support the propositions. It was found that customer relationship was seen as a valuable asset. Relationship Orientation and Customer Focus were evaluated by undertaking internal surveys and relationship management objectives were formulated and actions were proposed to improve Customer Value to the case banks. In the case banks Customer Information was collected through multiple customer touch points and integrated and analyzed. Customer Knowledge was accumulated and sustainable Competitive Advantages were built. Customer Perception and Customer Loyalty were measured externally. Customer Value and Risk Adjusted Return on Asset (RAROA) were employed to measure relationship banking performance and reward relationship managers ac-cordingly. The interviewees perceived that relationship-banking performance could be improved in this dynamic learning process.
Original languageEnglish
Pages (from-to)-
Number of pages14
JournalFinance and Market
Volume2
Issue number2
DOIs
Publication statusPublished - 31 Dec 2017

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