Customer-Centricity at Commerce Bank

Details

Case Code : CLMM004
Publication date : 2005
Subject : Marketing Management
Industry : Banking and financial Services
Length : 04 Pages
Price : Rs. 100

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Key words:

Commerce Bank, Customer Service, Retail Strategy, 10-Minute Policy, 24 Hour Phone Banking, Online Banking Services, "Retailtainment", Mascots, Mister C, Buzz, Doctor Wow, Customer Convenience, Penny Arcades, Commerce University, Training Needs, 'Mystery Shoppers', "Wow Teams"

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

Commerce Bank is one of the leading financial institutions in USA. The caselet describes the innovative service differentiation of the bank. It discusses the customer service initiatives undertaken to give the customer a fast and convenient banking experience. The caselet examines the brand building strategies followed by the bank. The Bank has established a corporate university called Commerce University to meet the training needs of its employees. Finally, the caselet provides details about the steps taken by the bank to motivate the employees.

Issues:    » Product differentiation in service industry    » Importance of customer satisfaction and value    » Employee training and its impact on service quality    » Branding building strategies in service industry Introduction Commerce Bank is one of the leading financial institutions in USA. The Bank has assets worth over US$ 21bn and 270 branches located in New Jersey, New York, Pennsylvania and Delaware.

The total income for the year 2002 was at US$ 830 mn, a jump of 39% over the previous year; and net profit stood at US$ 145mn, a 41% increase over the previous year. In 2003, the Bank opened 46 new branches. It has set a target of opening 500 branches and accumulating US$ 50bn in assets by 2007. The Bank's success is attributed to its focus on high customer service. It has followed a retail strategy and even calls its branches 'stores'...

Questions for Discussion:

1. Services are intangible. How far Commerce Bank has succeeded in "tangibilizing the intangible"?

2. Services are highly variable as they are dependent on the person who provides them. Thus, maintaining service quality is one of the key challenges for a services company. To what extent has Commerce Bank succeeded in maintaining service quality?