MARKETING OF BANKING SERVICES IN RURAL AREAS

Banks today are operating in a highly competitive and rapidly changing environment. n the changing
economic scenario, a professional approach to business development is essential and the survival of a
banking institution depends on its ability to take up challenges coming up in the environment. Developing
business through marketing of bank's services is one of the crucial areas which need attention of the
bankers to ensure profitable survival.
MARKETING : CONCEPTS : The role of marketing in an organisation's existence and growth need not
be overemphasized in today's competitive environment. According to Peter Drucker, "marketing is so
basic that it cannot be considered a separate function. t is the whole business seen from the point of
view of its final result, that is, customer's point of view. Survival of an organisation depends upon its ability
to acquire resources necessary for its sustenance. One of the modes of survival, as observed by Philip
Kotler, is "exchange, whereby an organisation creates and offers goods and services that are able to
attract and satisfy the purchasers, in exchange of its value. This option can be gainfully exercised only if
the organisation develops the capacity to produce the needed goods and services. The organisations
should be geared to identify the customer needs and preferences which are subject to change over a
period of time.
One of the policy issues discussed in marketing is the ultimate objective of the marketing efforts of an
organisation. The general belief is that the objectives of marketing is to maximise the market's
consumption of your products and services. However, it would be desirable to set the goal at maximising
consumer satisfaction, rather than consumption. The organisation, in the long run, is likely to benefit from
a customer oriented approach to marketing. The approach, in other words, should ensure strong
foundation for the institution's existence, because the concepts of marketing has its origin on the premise
that man is a creature of needs and wants. And there is constant effort on his side to satisfy his needs.
Further, his needs and wants keep changing with time, circumstances and the immediate environment in
which he is operating. Marketing management essentially involves the efforts to achieve the need
satisfaction of the target group the institution is trying to serve.
There are various philosophical aspects which can give conceptual orientation to marketing personnel's
approach. The "selling concept assumes that the consumers will either not buy or not buy enough of an
organisation's products unless the organisation makes a substantial effort to stimulate their interests in its
products. This becomes all the more relevant when the organisations are functioning in a rich
environment of competitors. "Product Concept in marketing philosophy assumes that the consumers will
favour those products that offer best quality for the price, while "production concept assumes that
consumers will favour those products which are available and affordable. An organisation's task,
therefore, should be to serve target markets in a way that produces not only want satisfaction, but long-
run individual and social benefit as the key to attracting and holding customers.
The need for a well defined institutional framework within the organisation to manage the marketing
efforts should be reckoned by any business concern. t is, therefore, essential that the institution
constitutes a marketing wing which will take care of the marketing function of the organisation. This
compartment has to work smoothly with other segments of the organisation. Acquiring modern marketing
orientation requires support from top management, a committed task force, constant review of strategies
and a consultant's help if considered necessary. The marketing wing should be adequately supported by
a "Marketing nformation System, which is a critical element in effective marketing. The information
system is the channel linking external environment with the executives of the institution.
BANK MARKETING MarkeLlng phllosophy ln any conLexL refer Lo Lhe need saLlsfacLlon of Lhe lnsLlLuLlon's
cllenLs 1he baslc sLep lnvolves ldenLlfylng Lhe needs of Lhe cusLomers and developlng producLs Lo sulL Lhelr needs
or modlfylng Lhe exlsLlng producLs accordlngly lL also requlres Lhe need for foreseelng wanLs of Lhe cusLomers ln
fuLure and developlng sulLable producLs of Lhelr requlremenL ueryk Weyer of 8arclay's 8ank aLLempLed a
comprehenslve deflnlLlon for 8ank MarkeLlng Accordlng Lo hlm lL conslsLs of ldenLlfylng Lhe mosL proflLable
markeLs now and ln fuLure assesslng Lhe presenL and fuLure needs of cusLomers seLLlng buslness developmenL
goals and markeLlng plans Lo meeL Lhem and managlng Lhe varlous servlces and promoLlng Lhem Lo achleve Lhe
plans all ln Lhe conLexL of a changlng markeL envlronmenL Successful markeLlng ln a bank calls for commlLmenL aL
all levels Lo Lhe Lask deflned ln Lhls regard Achlevlng hlgher buslness sLandards and operaLlonal performance
Lhrough markeLlng of banklng servlces should be one of Lhe dlrecLlonal goals of Lhe organlsaLlon
The ndian banking system, by habit and tradition, considered deposit growth as the business objective
and other parameters such as productivity, profitability, customer satisfaction, etc. were considered less
important. n view of the competitive surroundings in which a bank is compelled to function, there is need
for formulation of a strategic action plan for its marketing efforts. A marketing strategy, in general, is a
systematic, appropriate and feasible set of concepts and actions through which the institution strives to
achieve its goal of customer satisfaction and profitable survival. Strategy should be designed after taking
into account the strengths and weaknesses of the organisation. For example, a bank or branch with
clientele from various segments could think of "market penetration by offering the existing range of
services to existing customers. On the other hand, a bank which is having expanding business through
new branches or branches which are not facing acute competition could think of "Market Development by
offering the existing services to new customers. However, the real marketing challenges arise from the
institution's capability to design new product range for their customers of various segments. The strategy,
therefore, lies in increasing the client base and consolidating the relationship with existing and new clients
through existing or newly developed products.
The operational aspects of strategies for marketing contain actions such as development of Relationship
Banking, designing of effective delivery system, ensuring customer-oriented services and modifying the
system into a personal selling organisation. n western banking, officials assigned the job of personally
contacting the customers and offering the services at doorsteps had been able to make a significant
impact on the development of business for their organisations. The importance and role of personal
selling and customer contacts in the marketing efforts of a banking institution stem from the success of
such efforts in many banking institutions all over the world.
The implementation of the strategies is as crucial as its design in ensuring successful marketing. The
communication of the adopted strategies to different tiers of the institution and ensuring of its proper
understanding by personnel at all levels, is essential for successful implementation of the strategies. The
communication becomes difficult in organisations which have substantial branch network spread over a
large geographical area. The field staff at the branch level should be trained to implement the strategies
after modifying them to suit the environment in which they are operating. The knowledge of the local
environment, demographic features and cultural aspects is an essential requirement for the field staff
involved in marketing efforts for the organisation.
RURAL PSYCHOLOGY AND BANK MARKETING : Banks have a great role to play in the development
of rural areas and improvement in rural life. n order to play this role effectively, the banker should have
fair knowledge of the socio-psychological aspects of the rural society he is serving. First of all, the banker
should be aware of the "Human Groups and nstitutions in the area of operation. This means that one
should be aware of the role of agriculture in the rural economy, cultural aspects of the society, community
aspects, family and farm patterns, institutional facilities, etc. Secondly, the 'Process of Change', if any,
taking place in the rural scenario, should be known to him. The general changes that take place in the
rural scenario include urbanization, industrialisation, migration, social mobility, changes in values, farm
structure, etc. Thirdly, there could be 'Planned Changes', generally emanating from administration of
voluntary organisations, such as resettlement, land reforms, community development, agricultural
extension work, education etc, of which the field staff should be familiar. Fourthly, a general idea of the
status of various development projects under execution, welfare measures, schemes under
implementation, etc. will help the banker to have a complete picture of the rural society in which he is
operating. The knowledge on all these aspects of the rural society will help the banker in choosing the
right approach to the clients in rural areas since education of the people on the services offered is an
integral part of effective marketing. The psychology of the rural people should be properly understood. t
is only normal that the people in rural areas do not adopt a practice immediately. n fact, the tendency of
an illiterate person is to distrust the same. The banking habits are no exception to this. But subsequently,
on being properly educated, he may develop interest and would like to know more about. f the
information imparted convinces him that the idea is something useful, he enters the t third stage of
thinking about the possibility of accepting the idea for his benefit. Thus, there are different stages in the
"adoption process of the rural folks, which should be clearly understood by the field personnel.
The cultural pattern of the rural folks influence their economic behaviour considerably. Some rural
communities may have a "modern pattern of culture. These communities would be ever willing to try
something new if they are convinced that it can improve their present position. Dissemination of
information on bank's services become easy and the results are achieved at a faster pace with such
groups. On the other hand, groups characterised by "traditional pattern of culture are generally opposed
to change. Their main concern will be to preserve what has been the tradition and resists intrusion in to
their ways of living. Effective marketing becomes difficult while dealing with such groups. Members of the
group with a modern pattern of culture tend to be individualistic, while system of social control will be
more in groups with traditional pattern. n such groups, where tradition is emphasised, a far reaching
change in attitude towards anything, especially banking habits can be brought about only with the support
of their "Clan Leaders. The clan leaders are the people whom the rest of the community will listen to or
whose approval, explicit or otherwise, the people look forward to for accepting anything new. t is quite
possible that these leaders are not formal leaders of the group such as political leaders, but could be an
elderly person or a religious leader of the community trusted by the general public. Success in
approaching such rural societies definitely lies in understanding the rural psychology in this regard and
identifying such influential individuals from the rural masses. Any effort, therefore, to popularise the
banking services in rural areas call for absolute knowledge about the social structures, the culture, the
functioning of the rural groups and the nature and type of their leadership.
Changes are taking place in contemporary rural society, though at a slower pace. The elements of
dynamism of stability is existent in the rural environment, in the case of urban areas, though not operative
in identical degrees or patterns. The changes, however, have been generally confined to changes in the
agricultural pattern, community aspects and some general changes in the economic scenario. These
changes, however, generate scope for institutional services in various segments of the rural economy's
operation and the banking institutions should capitalise on the same through deep penetration into rural
households. This can be made possible only if the bank's personnel are aware of the changes taking
place in the rural environment and design their approach to the situation in a skillful manner. Modifying
the services to suit the dynamic environment is considered as the backbone of marketing efforts.
However, while designing or modifying, it should be ensured that the products are not inconsistent with
basic attitudes and cultural values of the people. Rapidity of acceptance of innovations is a function of
many factors, including the nature of innovation and its relationship to existing cultural patterns.
Banking institutions are vehicles of economic development. According to Rostow, economic theories and
development concepts should be linked to sociological and psychological elements, if it is to be maximally
useful. Gunar Myrdal had opined that "attitudes and "institutions play a significant role in rapid economic
development. Psychology, as a science of human behaviour emphasises the influence of human factors
which accelerate or impede the rapid acceptance of innovative ideas. Marketing efforts in the rural areas
should be designed with proper emphasis on these influential factors.
BANK MARKETING : ROLE OF PERSONNE: The marketing strategy for rural areas, by and large,
assigns a responsible role on branch officials in bringing out socio-economic transformation of the rural
society. There is need for a total marketing approach from the personnel to penetrate all levels in all
areas of banking operations. Efforts need to be made to design and launch suitably tailored services to
meet its changing needs of the rural population. The personnel attempting marketing in rural areas should
be able to establish an organic link with rural masses. They should be committed to the cause of rural
upliftment and should implement in totality the market strategies formed for the purpose. The knowledge
of the command area of the branch and the ability to identify potential customers and their financial needs
are pre-requisites for the success of marketing strategies. This calls for the need of training the staff with
sharp focus on improving the knowledge of the bank staff about the rural atmosphere and the skills
necessary to deal with the rural customers. There is also need for developing a sense of belonging
towards the organisation, customers and the society. The field staff, to the extent possible, should know
the language and dialect of the people and should be able to communicate in a manner which is
appealing to the people. The organisation on their part, therefore, should take adequate care in identifying
the right people for this specific job. They should also foster innovative and creative approach in working
to bring in new and original ideas and develop talent. There is also need for rationalisation of the work
load for the personnel in the rural branches to enable them to give adequate attention to the villagers and
their requirements. Further, the institutions need to motivate their personnel for popularising the services
in rural areas. Every member of the staff is a salesman of the bank's services and an ambassador of the
institution among people. Marketing efforts made by the personnel and its effect on business
development should be appreciated and rewarded by the bank management.
The bank personnel, as a matter of strategy, should try to find a place in the hearts of the rural folks.
Role of "personal influence on acceptance of an organisation or services in the rural scenario should be
kept in mind. The "personal influence refers to the effect of statements made by one person about the
bank or its services on another person's attitude towards the institution. n a village, people generally
know one another and have time and patience to converse with one another. Opinion on the institution
and its services are discussed among local people. A satisfied customer always acts as an ambassador
of goodwill for the bank and brings clientele through his own efforts. The personnel, therefore, should
strive for customer satisfaction as a marketing strategy, if not as the objective of the organisation.
n conclusion, it may be understood that the success of marketing of banking services in rural areas
depends on how the organisation properly blends the marketing concepts with the right approach
required to penetrate into rural households. And the final result of the efforts will depend on the sincerity
and zeal of the field personnel making the efforts and the organisational support available to them.
ank Harket|ng: A Two Pronged Approach
8ar| rar|el|rg |s lre des|gr ard de||very ol cuslorer reeded serv|ces Wor|ed oul oy |eep|rg |r v|eW lre corporale oojecl|ves
ol lre oar| ard erv|rorrerla| corslra|rls. ar| rar|el|rg |r gerera| ard Cuslorer Re|al|orsr|p Varagererl (CRV) |r
parl|cu|ar are ol v|la| |rporlarce lor lrd|ar oar|s parl|cu|ar|y |r lre currerl corlexl Wrer oar|s are lac|rg lougr corpel|l|or
lror olrer agerc|es, oolr |oca| ard lore|gr, lral oller va|ue added serv|ces. Corpel|l|or |s corl|red rol or|y lo resource
roo|||zal|or oul a|so lo |erd|rg ard olrer reverue gereral|rg areas ol serv|ces ollered oy oar|s. urder lre c|rcurslarces, |l
ras oecore esserl|a| lo deve|op a c|ose re|al|orsr|p W|lr va|ued cuslorers ard core oul W|lr |rroval|ve reasures lo sal|sly
lre|r reeds. Cuslorer expeclal|ors lor qua||ly serv|ces ard relurrs are |rcreas|rg rap|d|y ard, lrerelore, qua||ly |r lulure W||| oe
lre so|e delerr|rarl ol successlu| oar||rg corporal|ors. ll |s lrus r|gr l|re lral lrd|ar oar|s orgar|ca||y rea||ze lre |rperal|ve
ol proacl|ve 8ar| Var|el|rg ard Cuslorer Re|al|orsr|p Varagererl ard la|e sysleral|c sleps |r lr|s d|recl|or.
Harket|ng Approach 8ar||rg |rduslry |s esserl|a||y a serv|ce |rduslry Wr|cr prov|des var|ous lypes ol oar||rg ard a|||ed
serv|ces lo |ls c||erls. 8ar| cuslorers are sucr persors ard orgar|zal|ors lral rave surp|us or srorlage ol lurds ard lrose Wro
reed var|ous lypes ol l|rarc|a| ard re|aled serv|ces prov|ded oy lre oar||rg seclor. Trese cuslorers oe|org lo d|llererl slrala ol
ecorory, d|llererl geograpr|ca| |ocal|ors ard d|llererl proless|ors ard ous|resses. Nalura||y, lre reed ol eacr |rd|v|dua| group
ol cuslorers |s d|sl|rcl lror lre reeds ol olrer groups. ll |s, lrerelore, recessary lo |derl|ly d|llererl rorogerous groups ard
ever suo-groups ol cuslorers, ard lrer W|lr ulrosl prec|s|or delerr|re lre|r reeds, des|gr screres lo su|l lre|r exacl reeds,
ard de||ver lrer rosl ell|c|erl|y. 8ar|s gerera||y rave oeer Wor||rg oul var|ous serv|ces ard producls al lre |eve| ol lre lead
0ll|ce ard lrese are lraded lrrougr lre|r rela|| oul|els (orarcres) lo d|llererl cuslorers al lre grassrools |eve|. Tr|s |s lre so
ca||ed 'lop lo oollor' approacr. loWever, oar| rar|el|rg requ|res a crarge |r lr|s lrad|l|ora| oul|oo|. ll srou|d oe 'oollor lo
lop' approacr W|lr cuslorers al lre grassrools |eve| as lre loca| po|rl lor Wor||rg oul var|ous producls/screres lo su|l lre
reeds ol d|llererl rorogerous groups ol cuslorers. Trus, oar| rar|el|rg approacr, |r gerera|, |s a group or 'co||ecl|ve
approacr. Cuslorers Re|al|orsr|p Varagererl, or lre olrer rard, |s ar |rd|v|dua||sl|c approacr Wr|cr corcerlrales or cerla|r
se|ecl cuslorers lror lre rorogereous groups, ard deve|ops susla|rao|e re|al|orsr|p W|lr lrer lor add|rg va|ue lo lre oar|.
Tr|s ray oe lerred as a 'se|ecl|ve approacr. Trus, oar| rar|el|rg corcepl, Wrelrer 'co||ecl|ve approacr or 'se|ecl|ve
approacr, |s a lurdarerla| recogr|l|or ol lre lacl lral oar|s reed cuslorer or|erled approacr. lr olrer Words, oar| rar|el|rg
|s lre des|gr ard de||very ol cuslorer reeded serv|ces Wor|ed oul oy |eep|rg |r v|eW lre corporale oojecl|ves ol lre oar| ard
erv|rorrerla| corslra|rls. Tre lo||oW|rg crarl g|ves ar overv|eW ol lre TWo Prorged Approacr lo 8ar| Var|el|rg.

var|ous corporerls ol lre aoove Crarl are lurlrer e|aooraled |r lre secl|ors Wr|cr lo||oW.


Pr|nc|pa| Aspects of ank Harket|ng
6ustomer or|ented serv|ces:
3erv|ces ollered oy lre oar|s are lo oe Wor|ed oul |r sucr a rarrer lral lrey lu|l|| lre reeds ol lre cuslorers. Trad|l|ora||y,
oar|ers rave oeer accuslored lo lr|r| |r lerrs ol Wral oar|s car oller ard rol Wral cuslorers Warl. loWever, oar|
rar|el|rg corcepl requ|res lrer lo crarge lr|s or|erlal|or, ard slarl Wor||rg oul screres ard serv|ces oy |eep|rg crarg|rg
cuslorer reeds as lre locus ol lre|r reW ard rove| producls. lr order lo des|gr ard de||ver cuslorer reeded serv|ces, lre
oar|s rusl |earr lo see| |rlorral|or aooul lre ex|sl|rg ard polerl|a| cuslorers, ard lre|r perce|ved ard |alerl reeds or a
regu|ar ard sysleral|c oas|s.
0es|gn and de||very of such serv|ces:
Tre Word des|gr |rp||es lral good rar|el|rg serv|ces reed lo oe proper|y des|gred ard pa|rsla||rg|y cralled so as lo su|l a
parl|cu|ar We||-del|red group ol c||erls. Trey do rol jusl ererge ellorl|ess|y. Voreover, sucr proper|y des|gred serv|ces rusl oe
proper|y lraded. lr lacl, poor de||very ol srarl|y des|gred serv|ces |s jusl as oad as srarl de||very ol poor|y des|gred serv|ces.
Tre qua||ly ol de||very |s lo oe ersured rol or|y lrrougr locussed adverl|sererl, oul a|so lrrougr proper cuslorer serv|ces
ollered al lre oar|'s rela|| oul|els. Cuslorer sal|slacl|or |s a dyrar|c process ard |l |s recessary lo |eep pace W|lr r|s|rg
expeclal|ors ol lre cuslorers. Furlrer, lre deve|oprerl ol lT ard spread ol |rlerrel are oper|rg up reWer recrar|srs ol
cuslorer corlacl ard serv|ces.
6orporate 0bject|ves of the ank:
Tre corporale oojecl|ves ol lre oar| are lo oe Wor|ed oul W|lr|r lre oroad lrareWor| ol lre ral|ora| po||cy. Tre corporale
oojecl|ve are ol lWo lypes, 3rorl Terr ard Lorg Terr. Tre srorl lerr oojecl|ves cou|d oe ol lre lype: a) |rcreas|rg prol|lao|||ly
ol lre oar| rexl year; o) W|der|rg cuslorer oase oy oller|rg reW serv|ces; c) |rcreas|rg groWlr rale ol cred|l rexl year, elc. Tre
|org lerr oojecl|ves cou|d oe : a) lo r|se lo ruroer ore pos|l|or |r l|ve years; o) lo oecore lre ur|versa| oar| over lre per|od ol
rexl 3 years, elc.
0rce lre corporale oojecl|ves are c|ear|y spe|l oul, var|ous screres car oe des|gred lo lu|l|| lre reeds ol lre cuslorers W|lr|r
lre lrareWor| ol lre croser corporale oojecl|ves. Furlrer, lre resources rade ava||ao|e lor sysleral|c rar|el|rg ellorls are
a|so corslra|red oy po||c|es, v|s|or ard all|ludes ol lre raragererl.
Env|ronmenta| and other constra|nts:
Erv|rorrerla| ard olrer corslra|rls p|ay ar |rporlarl ro|e |r oar| rar|el|rg dec|s|ors. 0erera||y, lre erv|rorrerla| corslra|rls
la|| |rlo 1 calegor|es: ecoror|c, cu|lura|, |ega| ard po||l|ca|. A lrorougr urderslard|rg ol |oca| ard ral|ora| ecorory |s esserl|a|
lor la||rg ellecl|ve dec|s|ors aooul Wral producl lo oe ollered, Wrere |l |s lo oe ollered, al Wral pr|ce |l |s lo oe ollered ard roW
|l |s lo oe ollered? 8ar||rg screres Wr|cr are su|lao|e lor a deve|oped ecorory r|grl rol oe su|lao|e lor a deve|op|rg
ecorory. ll |s esserl|a| lo rave |rl|rale |roW|edge ol |rcore pallerr ol polerl|a| cuslorers, popu|al|or groWlr, ralure ol
|rduslr|a| ard lrad|rg acl|v|l|es, exlerl ol agr|cu|lura| deve|oprerl, erp|oyrerl |eve|s, Wage slruclures ard olrer re|evarl
laclors, |r order lo ra|e dec|s|ors aooul serv|ces lo oe ollered. Tre cu|lura| erv|rorrerl |r Wr|cr lre oar| operales a|so ras a
oear|rg or oar| rar|el|rg dec|s|ors. Tr|s |rc|udes all|lude ol |oca| peop|e aooul sav|rg, oorroW|rg & sperd|rg, ard a|so lre|r
lrad|l|ors ard va|ues. Tre screres su|led lor uroar seclor Wou|d oe d|llererl lror lrose su|led lor rura| seclor. Lega| ard
po||l|ca| erv|rorrerl ra|r|y corslra|rs lre dec|s|ors aooul lre pr|ce ol producl lo oe ollered ard lre p|ace lor oller|rg lre
producl, lor exarp|e, pr|ce ol depos|ls ard var|ous lypes ol advarces |s corslra|red oy lre |rleresl rale po||c|es ol lre
regu|alors. Trus, lre |roW|edge ol erv|rorrerla| corslra|rls |s ar esserl|a| laclor |r lre des|gr|rg ard de||very ol var|ous lypes
ol cuslorer-or|erled screres ard serv|ces.
Harket|ng 8trategy Tre rar|el|rg slralegy cors|sls ol a very c|ear del|r|l|or ol prospecl|ve cuslorers ard lre|r reeds ard lre
creal|or ol rar|el|rg r|x lo sal|sly lrer. A recerl deve|oprerl |r lr|s regard |s Cuslorer Re|al|orsr|p Varagererl (CRV). ll
|s a ous|ress slralegy lo |earr rore ard rore aooul cuslorer oerav|our |r order lo creale |org lerr ard susla|rao|e
re|al|orsr|p W|lr lrer. ll |s a corprerers|ve process ol acqu|r|rg ard rela|r|rg se|ecl|ve cuslorers lo gererale va|ue lor lre
oar| ard |ls cuslorers. urder CRV, acqu|s|l|or ol cuslorers |s dore lrrougr persora| v|s|ls, red|a adverl|sererl or Word ol
roulr lror ex|sl|rg cuslorers. Cuslorer relerl|or |s carr|ed oul lrrougr dala Warerous|rg ard r|r|rg loo|s, cuslorer serv|ce
ard ca|| serv|ces, ard |rproved cuslorer va|ue |s oola|red lrrougr cross se|||rg ard upse|||rg lo lre rela|red cuslorers.
|dent|f|cat|on of target customers and the|r needs
Tr|s |s ar |rporlarl area |r lorru|al|or ol a rar|el|rg slralegy. ur|ess lre oar| ras c|ear |dea aooul lre cuslorers |l Warls lo
serve, |l |s rol poss|o|e lo Wor| oul producls lo sal|sly lre|r reeds. Tr|s |derl|l|cal|or process |rvo|ves: |} l|rd|rg oul prol||e ol
preserl cuslorers |r lerrs ol lre|r educal|or, occupal|or, |rcore, geograpr|ca| |ocal|or, popu|al|or group, age, sex, rar|la|
slalus, producls & serv|ces lrey purcrase, lre|r rao|ls, lasles ard prelererces, lre|r ous|resses ard lulure prospecls, elc.;
||} l|rd|rg oul op|r|ors ol ex|sl|rg cuslorers aooul lre serv|ces prov|ded oy lre oar|s ard lre|r suggesl|ors lor |rprovererl |r
preserl serv|ces ard |rlroducl|or ol reW serv|ces;
|||} co||ecl|rg sucr |rlorral|or lror lre persors Wro are rol currerl|y cuslorers ol lre oar|.
A|| lr|s car oe dore oy corducl|rg a survey ol cuslorers ard ror-cuslorers ol lre oar|. Voreover, lr|s process ol see||rg
|rlorral|or aooul lre rar|el rusl lorr ar |rlegra| parl ol lre sysler ard rusl oe dore or a regu|ar oas|s. Tre survey Wou|d
g|ve va|uao|e |rlorral|or aooul prol||es ard op|r|ors ol cuslorers ard ror-cuslorers ol lre oar|, ard |l car oe ara|ysed lo l|rd
oul lre largel group ol lre cuslorers ard lre|r le|l ard |alerl reeds.

Tre corcepl ol dala Warerous|rg ard dala r|r|rg used |r CRV re|ps |r see||rg |rlorral|or aooul |rd|v|dua| cuslorers ard
lre|r reeds or a regu|ar ard sysleral|c oas|s. 0ala Warerous|rg ou||ds cuslorer W|se dala oy rapp|rg |l lror var|ous serv|ces
ard producls used oy lre cuslorers sucr as depos|ls, cred|ls, lore|gr excrarge, e-ous|ress, sale cuslody, |oc|ers, o|||
co||ecl|or elc. 0ala r|r|rg carr|es oul var|ous lypes ol ara|ys|s or co||ecled dala lo delerr|re cuslorer oerav|our W|lr respecl
lo producl, pr|ce ard d|slr|oul|or crarre|s ard ollers a ro||sl|c v|eW ol every cuslorer al a g|ver po|rl ol l|re. Tre cuslorer
|rlorral|or galrered oy lre oar| |r lre|r day lo day oar||rg operal|ors |s oller sull|c|erl lor ellecl|ve dala slorage. loWever,
rary l|res, |l reeds lo oe supporled oy dala co||ecled lror ouls|de sources ard agerc|es. Furlrer, lre Cuslorer Re|al|ors
Varagererl locuses or cuslorer c|ass|l|cal|or oy c|ass|ly|rg lre cuslorers |rlo: a r|gr va|ue (a rore prol|lao|e) cuslorer ard
a |oW va|ue (a |ess prol|lao|e) cuslorer. 0rce oar| d|llererl|ales lre cuslorers |r lerrs ol lre|r prol|lao|||ly ard olrer lra|ls, |l
oecores easy lor lre oar|s lo cuslor|ze lre|r serv|ces ard producls lo rax|r|ze overa|| va|ue ol lre|r cuslorer porllo||o.
Harket|ng H|x
Tre secord e|ererl |r lorru|al|or ol rar|el|rg slralegy |s deve|oprerl ol proper rar|el|rg r|x, so as lo sal|sly lre reeds ol
lre largel group ol cuslorers. Tr|s Wou|d |rvo|ve dec|s|ors regard|rg producl, p|ace, pr|ce ard prorol|or. 0ec|s|ors aooul
producl Wou|d arsWer quesl|ors aooul lre des|gr ol lre serv|ces ollered lo su|l cuslorer reeds, lre des|rao|e rours lor oller|rg
sucr serv|ces, lre allracl|ve rares ol sucr serv|ces ard so or. var|ous a|lerral|ve Ways lo prov|de lre oas|c serv|ces r|grl
rave lo oe Wor|ed oul deperd|rg or lre reeds ol lre var|ous largel groups. 0ec|s|ors aooul p|ace srou|d arsWer quesl|ors
aooul |ocal|or ol lre prospecl|ve cuslorers ard lrerelore |ocal|or lor oller|rg sucr serv|ces. 0ec|s|ors aooul pr|ce srou|d
arsWer quesl|ors aooul r|grl pr|ce lor serv|ces ollered, Wor|ed oul oy la||rg |rlo cors|deral|or lre cosl ol sucr serv|ces,
corpel|lor's crarges ard olrer laclors. 0ec|s|or aooul prorol|or arsWers quesl|ors aooul corrur|cal|or W|lr lre cuslorer.
Aller gell|rg |rlorral|or or reeds ard |ocal|or ol lre prospecl|ve cuslorer ard aller des|gr|rg screres lo su|l lre|r reeds, |l |s
recessary lo la|e dec|s|ors or ra||rg screres |roWr lo lre prospecl|ve cuslorers lrrougr proper corrur|cal|or red|a ard
lrrougr proper Words, so as lo or|rg oul lre sa||erl lealures ol lre screre. Aclua| de||very ol lre screres al lre courlers ard
al lre rarager's des| a|so p|ays a v|la| ro|e |r delerr|r|rg lre success ol lre screre. Expeclal|ors ol lre cuslorers |r posl-
relorrs per|od rave oeer crarg|rg very lasl ard cuslorers rave slarled sr|ll|rg |oya|ly lo oeller oar|s. ll |s lrerelore a|| lre
rore recessary lo ersure lral rol or|y lre le|l reeds oul a|so lre |alerl reeds ol lre cuslorers are loreseer ard sal|sl|ed. A
very good exarp|e ol lorru|al|or ol a rar|el slralegy urder lre 'co||ecl|ve approacr |s deve|oprerl ol lre producl 'K|sar
Cred|l Cards. Tre largel group |derl|l|ed lor lr|s Were larrers W|lr lre purpose ol d|spersal|or ol agr|cu|lura| ard rura| cred|l lo
lrer. Agr|cu|lura| cred|l cards ard casr cred|l lac|||l|es Wr|cr Were r|cre-rar|eled ard Were exc|us|ve|y preserved lor lre
pr|v||eged c|ass ol larrers Were lrus exlerded lo lre sra|| ard rarg|ra| larrers s|rce 1999.
Keep|rg lr|s reed ol largel group |r r|rd lre dec|s|or or producl Was rade. Tr|s producl dec|s|or |rvo|ved quesl|ors regard|rg
lypes ol reeds lo oe covered, ruroer ol W|lrdraWa|s ard repayrerls lo oe perr|lled, oas|s ol delerr|ral|or ol ||r|ls, va||d|ly
per|od ol lre cards, |ls rescredu||rg, lre rare ol lre producl ard so or. Tre p|ace dec|s|or arsWered quesl|ors aooul lre
|ocal|or Wrere lre KCCs car oe oola|red. Tr|s |rvo|ved a|| orarcres ergaged |r agr|cu|lura| |erd|rg. Pr|ce dec|s|or requ|red
arsWer|rg quesl|ors or rarg|rs, co||alera|, |rleresl rales lo oe crarged lor d|llererl s|aos ard so or. Tre prorol|or dec|s|ors
arsWered quesl|ors regard|rg rode ol adverl|s|rg lre KCCs so lral |l oecores W|de|y |roWr. Trese relrods |rc|uded rad|o &
Tv correrc|a|s ard persora| corlacls oy lre erp|oyees ol lre oar| aparl lror reWs paper |rserl|ors. Ar exarp|e ol rar|el|rg
slralegy urder 'se|ecl|ve approacr |s se|ecl|rg a depos|lor W|lr good lrac| record ard oller|rg r|r serv|ces lor 'car |oar,
'rous|rg |oar elc. oy persora| corlacls or lrrougr le|erar|el|rg or se|ecl|rg a va|uao|e oorroWer, |eep|rg lrac| ol r|s |rleresls
ard oller|rg r|r sore surpr|se g|lls lo ersure rar|lo|d |rcrease |r r|s sal|slacl|or. Tr|s approacr requ|res lr|r||rg aread ol
l|re lo l|rd oul Wral cuslorers r|grl reed |r lulure ard lu|l|| lrese reeds.
Promot|ona| 8trategy for ank Harket|ng Ever |l a screre |s proper|y deve|oped ard des|gred lo su|l cuslorer reeds, |l W|||
rol p|c| up, ur|ess |l |s proper|y rar|eled al a|| |eve|s. 3ore ol lre slraleg|es Wr|cr Wou|d re|p oar|s |r lre|r prorol|ora| ellorls
are g|ver oe|oW:
To prorole 'Persora| se|||rg Wrelrer perlorred oy courler c|er|, oar| oll|cer or cuslorer serv|ce represerlal|ves ol lre
oar|;
To ersure 'Proper |roW|edge ard aWareress ol var|ous screres ol lre oar| arorg lre erp|oyees ol lre oar|;
To ra|e ellorls so lral lre 'se|||rg all|lude oecores parl ol lre 'corporale cu|lure ol lre oar|;
To |rparl 'sa|es ard producl lra|r|rg |rc|ud|rg le|eoar||rg ard rel oar||rg corcepls lo erp|oyees ol lre oar|. 0re ol
lre Ways ol do|rg lr|s |s lo orgar|se per|od|ca| |r-orarcr deparlrerla| reel|rgs ol lre erp|oyees addressed oy 8rarcr
Varagers / 0eparlrerla| leads.
To deve|op |rcerl|ve prograrres Wr|cr reWard good-cuslorer or|erled se|||rg oerav|our. Tre |rcerl|ves reed rol oe
recessar||y |r lerrs ol a casr payrerl oul severa| olrer a|lerral|ves car a|so oe lrougrl ol, e.g. |l a parl|cu|ar erp|oyee
or|rgs cerla|r r|r|rur arourl ol ous|ress lo lre oar|, re/sre srou|d oe e||g|o|e lor cerla|r spec|a| |eave or lrey car oe
rade reroers ol a spec|a| c|uo ca||ed 'Cra|rrar's C|uo lor a parl|cu|ar per|od. 3evera| olrer sucr Ways g|v|rg casr|ess
|rcerl|ves lo lre erp|oyees car oe Wor|ed oul;
To ersure corvers|or ol lre erl|re erp|oyees orgar|zal|or ol lre oar| |rlo a We|| |rlorred, d|sc|p||red ard proless|ora|
lorce corr|lled lo lre corporale va|ues ard oojecl|ves;
To ra|e ellecl|ve use ol lre |arge relWor| ol lre rela|| oul|els ol lre oar| v|s|led oy a |arge ruroer ol cuslorers every
day. A lyp|ca| oar| cuslorer v|s|ls r|s/rer orarcr lWo or rore l|res a rorlr so ore car |rag|re roW rary cuslorer
v|s|ls eacr orarcr W||| rave per year. Tre use ol '|r-oar| adverl|s|rg Wou|d lrerelore re|p a |ol |r rar|el|rg oar|
serv|ces
lr lr|s correcl|or lre oar| ray rave lo lr|r| ol rela|| srop|eepers' slralegy ol exr|o|l|rg lre|r producls |r ar allracl|ve
rarrer. Tr|s Wou|d |rc|ude:
a} carelu| prys|ca| |ayoul ol lre orarcr ard creal|or ol |rv|l|rg erv|rorrerl;
b} exr|o|l|or W|rdoWs as lourd |r rary deparlrerla| slores d|sp|ay|rg var|ous producls ol lre oar| |r ar allracl|ve rarrer;
c} Allracl|ve lao|e W|lr g|ass oox or lop exr|o|l|rg ||leralure or var|ous producls ollered oy lre oar| lo oe |epl al ar appropr|ale
|ocal|or or lre orarcr l|oor;
d} creal|ve |deas lo exr|o|l '|rlarg|o|e producls |r 'larg|o|e rarrer e.g. v|sua| |rages, sra|| rode|s / prolograprs ol ||le sly|e,
cuslorer cou|d acr|eve W|lr lre re|p ol proper l|rarc|a| p|arr|rg dore lrrougr oar| screres;
e} creal|or ard updal|rg ol ||leralure or var|ous screres ard serv|ces ollered oy lre oar| ard ersur|rg |ls ava||ao|||ly al eacr
orarcr;
f} spec|a||y des|gred |r-orarcr v|deo v|sua|s exr|o|l|rg var|ous producls ard serv|ces ol lre oar|.
Puo||c seclor oar|s W|lr a |arge relWor| ol orarcres rave ar exce||erl opporlur|ly lo expard cuslorer re|al|orsr|ps ard
prov|de lrer W|lr add|l|ora| corp|ererlary serv|ces. Persora| corlacls |r ary case are rucr oeller as corpared lo
corlacls lrrougr prores or |rlerrels.
lr Cuslorer Re|al|orsr|p Varagererl (CRV), resu|ls ol dala Warerous|rg ard r|r|rg rusl oe rade ava||ao|e lo a|| lre
corcerred erp|oyees so lral lrey rave corp|ele |roW|edge aooul lre va|ue / prol|l eacr |rd|v|dua| cuslorer adds lo lre
oar|, lre|r lulure reeds ard Ways ard rears lo sal|sly lrer.
6onc|us|on
lr lre currerl corlexl ol lree rar|el corpel|l|ve erv|rorrerl, a lWo prorged approacr |s requ|red |r lre area ol oar| rar|el|rg:
F|rst |s lre 'co||ecl|ve approacr lo sal|sly a|| lre cuslorers ol lre oar| ard deve|op a pos|l|ve |rage ol lre oar| |r lerrs ol
qua||ly serv|ce ard producls. Tr|s cou|d oe acr|eved oy |rlroduc|rg a sysler ol oojecl|ve assessrerl ol lre slardard ol
cuslorer serv|ces/ cuslorer sal|slacl|or so as lo |derl|ly del|c|erl areas, l|rd oul causes lor del|c|erc|es ard |r|l|ale correcl|ve
reasures.
8econd |s lre 'se|ecl|ve approacr corcerlral|rg or se|ecl va|uao|e cuslorers lrrougr a Cuslorer Re|al|orsr|ps Varagererl
(CRV) prograrre lo delecl lre le|l ard |alerl reeds ol sucr c||erls, lo deve|op Ways ard rears lo sal|sly lrer ard lo ersure
lral sucr c||erls are rela|red oy lre oar| or susla|rao|e oas|s lor |rproved cuslorer va|ue.