Introduction
The paper attempts to provide background of the case which illustrates the current situation and the context of the problem which leads to a problem statement. The paper also attempts to provide the core problem faced by Commerce Bank along with the detailed analysis of the company. The paper aims to provide analysis through the application of SWOT analysis, describing the business model of the company, and its employee engagement system. Furthermore, the paper aims to provide recommendation along with a brief conclusion.
Background
The company aims to deliver a high-quality customer service through making its customers happy and blown away with their services. Deborah Jacovelli, the dean of Commerce University has offered various training and development programs for its employees including WOW programs which allowed the company to manage a perfect internal system. The company aims to increase customer expectation whenever a customer visits the Commerce Bank.
In order to further improve the customer experience, the company introduced the concept of ‘Retail tainment’ which focuses upon providing entertainment to customers in the waiting area of the branches. It also encouraged employees to come up with innovative ideas to entertain customers, while even the craziest of ideas are also welcome in managing a smile in the face of every customer. Since the company did not had competitive advantage in the large number of deposits or offering convenient loans to its customers, therefore the company’s business model had been based on innovative ideas to offer good customer services.
However, competitors around the country also started to introduce the similar concepts which focused on enhancing the value of customers through entertainment. Since competitors were offering better rates to its customers than Commerce Bank, therefore innovative ideas had been the main reason for its survival.
The Commerce Bank managed to emphasize over services against pricing which had led to the increased customer value. However, this had also led to the increased customer dissatisfaction and complaints regarding hiring too many greeter while being offering poor core services which results in delays.
Problem Statement
The dean of Commerce University Deborah Jacovelli is concerned whether the services of ‘Retail tainment’ provided by the company is satisfying customers and enhancing their values. Although the retail tainment program is limited to Fridays, Jacovelli is in a state of paradox if the program would have consistency across various other branches in the country. Therefore, Jacovelli is worried if she had taken a step too far in managing customer satisfaction.
Analysis
SWOT Analysis
Strengths
Commerce Bank has defied the traditional norms of a bank and has focused to blow away its customers through offering a retail format bank where consumers are entertained. The company also focuses on providing high quality customer service which constitutes a customer base of 62%, while its competitors have been focused upon serving 3% of the market which values good interest rates.
Furthermore, the major core competency of Commerce Bank is that the company make savings with an intention to provide ease to its customers by investing it on enhancing customer service. Due to the particular concept, the company is able to provide free ATM and card services along with free of cost for accepting coins.
These strategies often resulted in customers loving the company instead of liking it. Various programs were initiated along with WOW programs to train and educate employees and to appraise their performance so that they remain motivated.
Commerce Bank Case Analysis Case Solution
Weaknesses
The company provided a lowest interest rate on its deposit as compared it with its competitors in the industry, whereas, the company also have very stringent rules in providing loans to its customers. The company have a sound loan providing services as it then focuses on business operations and the safety of the company than its customers.
Furthermore, the company also have higher operating cost for running a branch due to various in-branch activities performed by its employees to please its customers through the concept of ‘retailtainment’. The customers have made complaints regarding the concept of retailtainment as they believe that there are many employees greeting customers in the waiting area, but little have been focused upon decreasing the wait time as there are too many free employees.
Opportunities
The company has various business opportunities since its business model is focused upon customer-centric approach. The company can identify the various problems that are being faced by its customers in their daily day-to-day transactions and can focus on enhancing those services in the company’s core services business model. Furthermore, the company can manage to retain its customer base to attrition through focusing on its current business model(Johnson & Gustaff son, 2006). .......................
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