Question

Think of a company with many customers with whom you have had experience. Based on what you know and have experienced with that company and their many customers, reflect on whether too many customers create a scenario where the company commits to being all things to all people, thus causing the company to potentially compromise its strategic success. What suggestions could you offer them to improve their strategy?

Answer 1

Solution –

This company that we are considering for analysis is a large commercial with various service divisions and operating both at the retail – Personal Public Client and Corporate – Large Organizational Client levels. The customer base is huge and the average customers per employee is around 19:1 in ratio so for every 19 clients of the commercial bank the bank has 1 employee. Apart from this the services suite offered to the client is so vivid that the employees in the client facing roles need to be skilled and comfortable to handle multiple queries and process information related to multiple areas. The regulation aspect also eats up the employee time. The overall strategy of the bank was to project itself as a premier service organization and offer the best in class services. Unfortunately with such a huge client base and mostly the common masses the premier clients sometimes refrain from approaching this bank for services due to the high turnaround time and non – personalized services.

The Bank has tried to overcome this by segregating their services point for masses and premier customers. This has been done to ensure that the Bank remains aligned to its original strategy and is able to attract premier customers. The other initiative that the Bank has taken is to project itself in two ways – One is the – People’s Bank and other is on the aspect of – Premium Services. This has ensured to attract both the common masses and also the premier clients. The bank has also tweaked its offerings in accordance with the segmentation and ensured universal acceptance.