banking services. Here, the profitability of products can be understood, but not the
profitability of the client segments.
3. Concentration on the client - the activities are organized behind the "factories"
of products and distribution channels. The organization concentrates on the quality of
contacts and products, but contacts with customers, as before, are treated as separate,
one-time events. Contacts initiated by the bank are almost always aimed at selling.
Evaluation of the profitability of products and customer segments should become
standard practice.
4. Concentration on relations - few organizations in the world have completed the
transition to this stage, and no bank in Ukraine has yet reached this level. In fact, at this
stage, the organization is vigorously engaged in the quality of interaction between the
product and the client and considers the client as a whole, and each contract considers
part of a broader and longer relationship. At this stage, the bank actively identifies
opportunities to appeal to customers, except for contacts aimed at selling, in order to
maintain relations with them. As a result of the development of these relationships, the
customer feels better and becomes less sensitive to the price of individual products,
since it considers the added value derived from long-term relationships.
In addition to the profitability of products and the client segment, the bank
determines the value of various customer segments throughout the life-period and
develops separate activities (other than sales and service products) to strengthen and
improve customer relationships.
Management model. Transformation in the organization of operations and
approach to business should correspond to the changes in the bank’s management
model. Often banks try to "cram" the new practice into existing management models
created for earlier evolutions of their stages, practically guarantee the appearance of
difficulties, if not lead to complete failure.
Another common problem is the developer / manager syndrome. When banks go
through operational and business transformations, there should be a division into those
who develop and improve the bank, and those who manage its daily or current
activities. Sometimes managers responsible for business and operational activities are
too busy with their daily business to create something other than generalizing their
work. In most cases, this leads to a very slow development, and for many banks in the
world becomes the cause of competitive advantages loss, if other banks develop and
innovate more rapidly.
Given an elaborate organizational structure and management model suitable for
the relevant stage of the bank's development, as well as a market strategy and a detailed
tactical plan for its implementation, it is much easier for banks to win the market and
a competitive advantage through an accurately coordinated chain of improvements and
innovations.
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