What type of consumer specific products could a bank develop to meet the needs of the market and why?
A number of factors are forcing banks to develop customer centric approaches and provide products that suit the needs and demands of customers. Recent financial turmoil, the spread of internet & social media as discussion forums, cut throat competition and stricter regulations are some of the factors that brought about this change. This change in approach is targeted at retaining customers from serious poaching efforts by competitors and winning new customers.
Some of the customer centric products that banks can provide include:
- Customer specific communication: no one reads the communication that is sent to the masses. Personalized communication carries more weight and gets our attention as customers. So mass communication should be replaced with personalized communication.
- Customer specific executives: several banks are now providing personalized services in terms of dedicated executives to handle the accounts of high net worth customers. Such relationship managers or executives deal with such accounts and customers only talk to them and get the work done.
- Ease of banking: most banks are now providing easy banking through banking apps or wireless banking.
- Low margin products: banks can also launch low margin products to attract clients.
- Better customer experience: banks are also working at enhancing customer experience by shortening the wait period at banks, providing quicker and more dedicated services, etc.