Profitable Customer Management: A Study in Retail Banking

The increasing focus of relationship marketing and customer relationship management (CRM) studies on issues of customer profitability has led to the emergence of an area of research on profitable customer management. Nevertheless, there is a notable lack of empirical research examining the current practices of firms specifically with regard to the profitable management of customer relationships according to the approaches suggested in theory. This thesis fills this research gap by exploring profitable customer management in the retail banking sector. Several topics are covered, including marketing metrics and accountability; challenges in the implementation of profitable customer management approaches in practice; analytic versus heuristic (‘rule of thumb’) decision making; and the modification of costly customer behavior in order to increase customer profitability, customer lifetime value (CLV), and customer equity, i.e. the financial value of the customer base. The thesis critically reviews the concept of customer equity and proposes a Customer Equity Scorecard, providing a starting point for a constructive dialog between marketing and finance concerning the development of appropriate metrics to measure marketing outcomes. Since customer management and measurement issues go hand in hand, profitable customer management is contingent on both marketing management skills and financial measurement skills. A clear gap between marketing theory and practice regarding profitable customer management is also identified. The findings show that key customer management aspects that have been proposed within the literature on profitable customer management for many years, are not being actively applied by the banks included in the research. Instead, several areas of customer management decision making are found to be influenced by heuristics. This dilemma for marketing accountability is addressed by emphasizing that CLV and customer equity, which are aggregate metrics, only provide certain indications regarding the relative value of customers and the approximate value of the customer base (or groups of customers), respectively. The value created by marketing manifests itself in the effect of marketing actions on customer perceptions, behavior, and ultimately the components of CLV, namely revenues, costs, risk, and retention, as well as additional components of customer equity, such as customer acquisition. The thesis also points out that although costs are a crucial component of CLV, they have largely been neglected in prior CRM research. Cost-cutting has often been viewed negatively in customer-focused marketing literature on service quality and customer profitability, but the case studies in this thesis demonstrate that reduced costs do not necessarily have to lead to lower service quality, customer retention, and customer-related revenues. Consequently, this thesis provides an expanded foundation upon which marketers can stake their claim for accountability. By focusing on the range of drivers and all of the components of CLV and customer equity, marketing has the potential to provide specific evidence concerning how various activities have affected the drivers and components of CLV within different groups of customers, and the implications for customer equity on a customer base level.

Credit Default Swaps and Insurance: Against the Potts Opinion

Little attention has been given to the possibility that CDS transactions might be construed as insurance contracts in English law. This article challenges the widespread “Potts opinion”, which states that CDSs are not insurance, because they do not require the protection buyer to sustain a loss or to have an insurable interest in the subject matter. CDSs often do provide protection against loss that the buyer is exposed to; loss indemnity is not a necessary characterisation of an insurance contract; insurable interest does not form part of the definition of insurance, but is an additional requirement of valid insurance; and what matters is the substance not the form of the contract. The situation in the US and Australia is also briefly considered.

Banking psychographics: an Indian empirical study

India has been witnessing an economic boom which fuelling a huge growth in the financial sector especially the banks. The spending power and consumerism has been increasing along with the growth in GDP. The numbers of banks are around 3000 (data according to Reserve Bank of India). With a population base of close to 1.1 billion and a diverse culture that has been dictating the mindset and lifestyle of the population, it has been a challenge for the banks to understand the customer better and hence a the need of the hour is a proper psychographic study of retail banking customers.

Les Portugais d'Amérique : souvenirs historiques de la guerre du Brésil en 1635 : contenant un tableau intéressant des moeurs et usages des tribus sauvages, des détails instructifs sur la situation des colons dans cette partie du nouveau-monde : ouvrage destiné a la jeunesse

Illustré de 12 dessins impremés en 2 couleurs

The lowland dry zone of Sri Lanka: site for study of aquaculture development within farmer-managed irrigation systems and methodology for participatory situation appraisal

The aims of this paper are twofold. Firstly to characterise rural poverty and to give a broad overview of the agro-ecological, climatic and socio-economic conditions in Sri Lanka which shape poverty. Secondly to present the methodology employed to screen suitable field research areas and the techniques subsequently used to carry out Rapid Rural Appraisal in two upper-watersheds villages. Also presented are details of a concurrent stakeholder analysis that aimed to investigate the capacity of secondary stakeholders to promote sustainable aquatic resource development and to invite their participation in the formulation of a participatory research agenda.[PDF contains 58 pages]

Die Situation der Makrelen- und Stöckerbestände. Der deutsche Beitrag zur internationalen Bestandsabschätzung

The question has not yet been completely solved whether or not the mackerel and horse mackerel stocks in the waters from the Bay of Biscay to the Atlantic off the Norwegian coast are independent unit stocks or must be regarded rather as one stock with distinct stock components. The stock definition, however, is the basis for fishery management and is fundamental for the exploitation of the stocks. For this reason the extensive mackerel and horse mackerel egg survey carried out in 1998, is of high importance and significance for the fishery management of the two species. The survey has begun in January in Iberian waters and will eventually end in the autumn north of Scotland. To cope with this task research vessels of eight European nations are participating.

Situation awareness application

This thesis describes the design and implementation of a situation awareness application. The application gathers data from sensors including accelerometers for monitoring earthquakes, carbon monoxide sensors for monitoring fires, radiation detectors, and dust sensors. The application also gathers Internet data sources including data about traffic congestion on daily commute routes, information about hazards, news relevant to the user of the application, and weather. The application sends the data to a Cloud computing service which aggregates data streams from multiple sites and detects anomalies. Information from the Cloud service is then displayed by the application on a tablet, computer monitor, or television screen. The situation awareness application enables almost all members of a community to remain aware of critical changes in their environments.

Situation wirtschaftlich wichtiger Grundfischbestände vor Norwegen, Spitzbergen und in der Barents-See

Assessments on NE-arctic stocks of cod, haddock, saith, redfish and Greenland halibut were carried out by the ICES 'Arctic Fisheries Working Group' in August 1996. Whereas stocks of cod, haddock, and saithe are presently in fairly good and stable condition the assessments show the stocks of beaked redfish and Greenland hailibut to be just the opposite. The status of the golden redfish stock seems to be stable. More detailed information is given in this report.

Über die Situation des Kabeljaubestandes in der Nordsee, unter besonderer Berücksichtigung der Deutschen Bucht

Seit der letzten speziellen Situationsbeschreibung des Kabeljaubestandes in dieser Zeitschrift sind 4 Jahre vergangen (EHRICH, 1988). In der Zwischenzeit ist besonders den Fischern durch weitere Fangeinbußen bewußt geworden, daß sich der Zustand des Bestandes nicht verbessert, sondern im Gegenteil weiter verschlechtert hat. Die Schonmaßnahmen wie stufenweise Erhöhung der vorgeschriebenen Mindestmaschenweite auf 100 mmm und eine Reduzierung des Fischereiaufwandes in den Jahren 1991 und 1992 auf 70 % des Aufwandes in 1989 (Mindesthafenliegezeit: durchgehend 8 Tage pro Monat oder alternativ Erhöhung der Mindestmaschenweite auf 110 mm für die direkte Fischerei auf Kabeljau und Schellfisch) haben keine positive Wirkung gezeigt.

Westgrönland, der Kabeljaubestand und die hydrographische Situation im Herbst 1988

Über die positive Entwicklung des Kabeljaubestandes unter Westgrönland, ab Mitte der 80iger Jahre wurde bereits im Vorjahr berichtet. Die mit FFS "Walther Herwig" im Herbst 1987 erzielten Surveyergebnisse dokumentieren einen steilen Anstieg der Bestandsgröße sowohl hinsichtlich der Individuenzahl (Abundanz) als auch des Bestandsgewichts (Biomasse) um das 4-fache auf 583 Millionen Fische bzw. um das 6-fache auf 464000 Tonnen. Diese Bestandszunahme war zahlenmäßig zu 88% und gewichtsmäßig zu 85% auf die Rekrutierung der 3 jährigen Kabeljau des starken Nachwuchsjahrganges 1984 zurückzuführen.

Instituciones Microfinancieras y banca tradicional: diferencias en funcionamiento y resultados durante la crisis

Español: A finales del 2007 muchas entidades financieras comenzaron a mostrar cifras negativas en sus balances y tras la quiebra de entidades de gran peso económico como el banco Lehman Brothers en Estados Unidos en septiembre del 2008, el mundo se ha visto envuelto en una crisis económica de la que parece no verse el final. Las entidades financieras tradicionales han centrado sus esfuerzos en obtener las mayores rentabilidades posibles, invirtiendo sus recursos en activos muy arriesgados, que si bien en un principio generaban beneficios muy elevados, a día de hoy han hecho quebrar muchas entidades a nivel mundial y han provocado la pérdida de los ahorros de muchos ciudadanos. Ajenas a esto se encuentran las entidades microfinancieras, que con un enfoque muy diferente al de la banca tradicional, se han centrado en proporcionar financiación a aquellos que dada su situación económica y falta de garantías no podían acudir al sector financiero tradicional. Tras realizar un análisis de los resultados de ambos modelos financieros desde 2006 hasta 2012, se ha podido comprobar como el sector microfinanciero presenta resultados más favorables y muestra una mayor prosperidad de cara al futuro. Por lo general, estas entidades mantienen niveles de solvencia más elevados y emplean todos sus recursos en proporcionar financiación a sus clientes. Finalmente, la solución a los problemas del sistema financiero tradicional se basa en un aumento de los niveles de capital de sus entidades, volviendo a un modelo de banca tradicional centrado en ofrecer financiación al público, con provisiones más liquidas y mayores garantías ante necesidades de liquidez como las retiradas masivas de depósitos recientemente sufridas.

Reestructuración financiera del sistema bancario español

A finales del año 2007 se produjeron una serie de acontecimientos que más tarde, y por efecto del contagio internacional, desembocaron en una de las crisis económico-financieras más determinantes que se recuerdan en España. El presente proyecto tiene como objetivo entender todo el proceso de reestructuración llevado a cabo en los últimos años. Para ello, recoge inicialmente el origen de la crisis económico-financiera, para más tarde hacer referencia a las principales medidas que se han tenido que llevar a cabo para modificar el sistema financiero. Además, explica la última reforma de las Cajas de Ahorro y fundaciones bancarias junto con los cambios que la misma ha generado en el Sistema Financiero y en la Obra Social. Por último, después de analizar lo sucedido años atrás, llega a una serie de conclusiones acerca de la situación actual y futura del nuevo mapa financiero Español.