Royal Bank [formerly Royal Bank of Canada] employs sophisticated analytics as it pursues its business strategy of customer relationship management (CRM). Given the size and breadth of the bank, analytics provide a firm foundation that allows bank employees to gain insights into what consumers want and need from their financial institution.
This case study looks at how Royal Bank has enhanced its analytical capabilities while pursuing its CRM vision. Financial services institutions reading this study will gain an overview of how Royal Bank uses analytics to make the bank more responsive to customers-enhancing the customer interaction regardless of touch point.
The Research Note reviews the general CRM framework at Royal Bank and then hones in on the business drivers that have helped the bank refine its analytical capabilities. Since analytical techniques have varying degrees of efficacy depending on the business problem under consideration, the Note also reviews the major techniques currently in use at Royal Bank.
Additional Information
Highlights
Royal Bank [formerly Royal Bank of Canada] is committed to a customer relationship management (CRM) business strategy that seeks to maximize the value of its customer base through the strategic use of information. The bank has sought to mine customer information aggressively in an effort to create tailored product and service recommendations while assuring a high-quality customer experience.
Managing the quality of the customer interaction is no small task. The bank is one of the first financial services institutions (FSIs) that committed itself to a CRM strategy that would give equal emphasis to service and sales. For Royal Bank this means providing customer contact personnel with the information that allows for appropriate decision making. In this case, the bank seeks to ensure that service decisions are standardized.
Sales and service strategies for individual customers are currently distributed to desktops in the call centers and branches. It was the manned channels that Royal Bank first sought to include in its relationship management capability. As a result, the bank is making strides toward providing individual staff members with the customer knowledge that enables them to provide a tailored, consistent customer experience irrespective of points of contact—in effect creating an enterprise-wide organizational memory.
Royal Bank demonstrates some of the critical success factors that are often identified in organizations with well-implemented CRM projects. Aside from a multidisciplinary approach to CRM, the bank has: visible and vocal support throughout executive management; a robust data warehousing environment; an evolving corporate culture that shifts focus from business units to customers, and a willingness to take risks to improve its CRM capability.
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![CRM Case Study: The Analytics That Power CRM at Royal Bank [of Canada]](/images/productcover.ncp?productid=375500)
