Title: The establishment of appropriate service strategy for banking industry customers with different value

Authors: Shun-Hsing Chen, Chen-Kuo Pai, Fei-Yun Chen

Addresses: Department of Marketing and Logistics Management, Yu-Da University, No. 168, Hsueh-Fu Rd, Tan-Wen Village, Chao-Chiao Township, Miao-Li County, 361 Taiwan. ' Department of Management Information Systems, Chin Min Institute of Technology, No. 110, Syue-Fu Rd, Tou-Fen Township, Miao-Li County, 351 Taiwan. ' Department of Marketing and Logistics Management, Yu-Da University, No. 168, Hsueh-Fu Rd, Tan-Wen Village, Chao-Chiao Township, Miao-Li County, 361 Taiwan

Abstract: This study classifies banking customers basing on customer|s value for businesses through the customer|s value diagram (CVD). This diagram divides customers into three levels: premium customers, general customers and static customers. Furthermore, the diagram integrates the performance control matrix (PCM) to selectively propose different service strategies to the customers. The service strategy proposed by businesses should take into consideration resource efficiency. From the matrix, the three strategies adopted are as follows: 1) increasing resource and enhancing quality; 2) maintaining current service quality; 3) decreasing resource and avoiding wastefulness. Through different service strategies, they can satisfy the requirements and enhance the satisfaction from different customers. In addition, the corporation improves services to the customers who contribute highly to the business incomes. Finally, customer|s loyalty is strengthened with newly created customer value. The businesses then can manage to optimise resource allocation and to utilise the resource more efficiently through this service strategy.

Keywords: customer relationship management; CRM; customer value; value diagrams; performance control matrix; service strategies; banks; banking; premium customers; general customers; static customers; resource efficiency; quality enhancement; increased resources; service quality; decreased resources; waste avoidance; wastefulness; business incomes; customer loyalty; resource optimisation; Taiwan; services technology; services management.

DOI: 10.1504/IJSTM.2011.041979

International Journal of Services Technology and Management, 2011 Vol.16 No.1, pp.91 - 106

Received: 21 Aug 2009
Accepted: 11 May 2010
Published online: 21 Feb 2015 *

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