Buying decisions for commoditised products not solely based on price
Shehan Wijetilaka, partner at Huthwaite Asia Pacific, feels that only banks that offer customers real value can more ahead of competitors. October 13, 2011 | Shehan WijetilakaBanking in Asia has become much more competitive. The mergers and acquisitions of the last decade, plus the legislative and policy changes brought about in the wake of the global financial crisis have changed the face of the industry. The result is that consumers now have more choice, but with so many banks offering similar (or identical) products, often because of legal restrictions, banking has become commoditised. What a bank needs to do in order to really differentiate itself from the pack is to create compelling value propositions and offer customers real value beyond the returns offered from the product itself. Strictly speaking, this falls under the ambit of customer relationship management (CRM). But where CRM may once have focused solely on customer behaviour and managing customer expectations, CRM strategists now look towards building value-based customer experiences, where customers bonds with the organisation for the longer term. To radically alter the relationship between banker and customer by recognising the customer’s buying mode. Customers in the transactional buying mode are looking at the banking transaction strictly in terms of rates, fees and terms, and are looking for the best deal. They may not even want to speak to a banker. Transactional buyers resent being “pitched”, are confident in their own knowledge and will not pay a premium for an offering they perceive as a commodity. These customers can be bought with the cheapest or easiest offering, or else need to be moved out of the transactional mode, by offering them more than information. Once transactional mode buyers receive genuine benefits besides just low cost, they can be eased into the consultative buying mode. Customers who are in a consultative buying mode want more than quality products and good customer service. These customers value access to the expertise and knowledge of the banker. They welcome the opportunity to build relationships with professi... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Customer Relationship Management, Trade Finance, Transaction BankingCustomer Relationship Management,Trade Finance,Transaction Banking, Customer Relationship Management,Trade Finance,Transaction Banking, Keywords:Huthwaite Asia Pacific, Value Drivers, CRM, Metrics, Buyer Insight Huthwaite Asia Pacific, Value Drivers, CRM, Metrics, Buyer Insight
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