Royal Bank Canada_Papaer

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| I.| A GLANCE LOOK OF RBC (Royal Bank of Canada) ëh Royal ank of Canada i th lading finanial rvi providr in Canada. It ha a $ 165 million at, $ 1 billion profit. ëh rvi from thi ompany rlat with a hug amount of utomr, for thir utomr ba rah ovr 10 million and 1.3 million of thm alrady u altrnativ banking hannl lik intrnt or tlphon a wll. ëo dlivr th rvi for R C utomr, thy oprat narly 1400 branh and 4200 AëM. ëo atify thir utomr, R C mad an approah of dvloping nw mtri and analytial thniqu to provid ontoon rvi. ëh approah tartd from 1978 whn R C didd to ollt utomr data whil th firt tp of ontoon markting wa takn during 1992 a th Ië appliation wa alrady at pla. R C nw ytm͛ goal i to align al, rvi taff and improv rtntion. In prati, th ytm wa ud by both bakoffi and frontoffi funtion. Aftr having rviw from th utomr, R C found om gap btwn thir nw ytm with th utomr  ptation hown a follow ytm͛ Wakn

Cutomr Exptation

1)| Not pri nough for rlationhip priing, 2)| Not providing maur of potntial u, 3)| Unabl to maur prforman.

1)| ing tratd a individual, 2)| ëo hav thir nd antiipatd and 3)| ëo hav th valu of thir buin rfltd.

ëhrfor, nw approah wa ndd in ordr to improv ytm͛ ability o it will fulfill th utomr nd. ëo b abl to dal with thi iu, R C pially Cathy urrow wa hallngd on how to hang th ytm and mak it apabl nough to dlivr atifying rvi. ëh approah hould b mad flxibl, o it will allow profitability to b aggrgatd to urdfind lvl a follow r| ·rodut and produt group r| Cutomr gmnt r| Gography r| Channl 2 ëh olution would run off xiting NCR ëradata warhou whih wa alrady upporting R C͛ managmnt information ytm and ndd to b rulbad. Group 1 ʹ rvi Mark ing | Alli 
aron, Carin , Nur Afidah &  phani

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| In prati, thy implmnt nw oftwar alld Valu Analyr. ëhi appliation providd a bottomup utomr valu amnt bad on individual aount. It u tranational data to produ a valu mtri, whih an b ud for pronal a wll a for vry othr lvl of th ntrpri. ëhr ar 5 ara of ot ud a input into th lint valu mtri produd by Valu Analyr r| Nt intrt rvnu r| Evn oting r| Nonintrt rvnu r| Rik proviion r| Indirt oting alloation All th 5 maur wr purpod to allow th ompany to  utomr profitability and what drov it a wll a rturn vru aumd rik, hannl ot and whthr Ê annels are profitable.

II.| ·ROBLEM IDENTIFICATION Royal ank of Canada tartd to b awar of th nity to dvlop a mor pronalizd markting approah. In thi way, thir rfltion lad to dvlop a CRM tratgy. In thi a, w an diovr th firt tp of implmntation of thi tratgy. ëh ompany fou on ontoon markting and tartd to rat a utomrrlatd databa, th main tool to improv th utomr! undrtanding. ëhat! why; w will fou on th implmntation of th tool ud by R C, whih i Valu Analyr nabling Clint Currnt Valu Maurmnt. W will  on whih ritria thy hav hon thir tool, how thy hav implmntd it and whih i th nxt tp in thir tratgy dvlopmnt. Dfining th funtion and th thnologi platform to u for th databa ar th main iu in thi dvlopmnt. W will analyz th hoi rlatd to th nw tratgy How an w go furthr in th dvlopmnt of mtri valu to gmnt automatially th R C utomr. III. | YITUATIONAL ANALYYIY in th a of R C with it CRM tratgy, it i hown that thi ompany wa faing a hallng of dvloping, managing and uing utomrrlatd databa to thir utomr. A mntiond in Cutomrrlationhip Managmnt ( uttl, 2009), utomrrlatd databa ar th foundation for Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani

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| th xution of CRM tratgy. ëo prform wll, it i rquird for any ompany to proprly aquir, nhan, tor, ditribut and u utomrrlatd data. In th urrnt ondition of R C, it i mntiond that thy alrady tartd th initial CRM tratgy. Unfortunatly, th ytm wa not uffiint to dlivr R C͛ utomr xptation. It wa rognizd that om prviou aumption don by th ytm wr faulty. ëhrfor thy nd to do onidr furthr analyi; thy will b maximizing valu within th ytm itlf. Dvlopmnt of th CRM tratgy tart with a ituation analyi a follow | Cutomr/ gmnt

ëop thr gmnt ʹ om of th mor ignifiant payoff

| Markt iffring

Ability to dlivr finanial tatmnt on at, liabiliti, quity, inom & xpn, ontingni, intrompany tranfr

| Channl

Dirt, by uing intgratd ytm with R C Ië infratrutur

| CRM Viion

ëo provid bhavioralbad olution foud on th utomr and aount

IV.| DEVELO·ING, MANAGING & UYING CUYTOMER ʹ RELATED DATABAYEY Define t e database funÊtions tratgi CRM nd data about markt, markt offring, utomr, hannl, omptitor, prforman and potntial to b abl to idntify whih utomr to targt for utomr aquiition, rtntion and dvlopmnt, and what to offr thm. Cutomrrlatd data i nary for both oprational and analytial CRM purpo. Analytial CRM u utomrrlatd data to upport th markting, al and rvi diion that aim to nhan th valu ratd for and from utomr. Cutomrrlatd data ar typially organizd into two ubt, rflting th oprational and analytial purpo. iprational data rid in an i ë· (onlin tranation proing) databa and analytial data rid in an i A· (onlin analytial proing) databa. ëh information in th i A· databa i normally a ummarizd, rtruturd, xtrat of th i ë· databa, uffiint to prform th analytial tak. i ë· nd to b to b vry aurat and up to dat. Define t e information requirements Whn laborating a databa, you hav to hav a pratial approah and dfin th ritria that you ar looking for rving your tratgy. irt, utomr information fild rfr to a diffrnt u of databa, for xampl you an rat a fild with pifi information for al or markting Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani

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| dpartmnt. ond i about ontat data i th point to tart popl involvd in th buying diion hav to b involvd and thir rol, for xampl diion makr, influnr͙ and how to ontat thm (phon, mail, potal addr). Aftr, information ha to b rlatd to ontat hitory, tranational hitory and urrnt piplin to gt all th data btwn th utomr and th ompany (tart and volution). Aftr you hav to go to th urrnt ituation by analyzing produt thy hav and th king of ommuniation thy prfr, and thn antiipat thir nd by propoing opportuniti. Identify t e information sourÊes ëhn you hav to idntify how to gt information about th utomr by hooing th olution whih will giv you bttr rult intrnal and/or xtrnal our. ëh main iu i to tart with th good audit to orrtly valuat th intrnal rour to b mor prforming. In thi way, you an ro all of th information that you an find in ah dpartmnt of th ompany, utomrrlatd databa rquir diffrnt point of viw and approah of th utomr to ddu a global ompany profil u for ah on. YeleÊt t e database teÊ nology and ardware platform Conidring th kind of information you want to hav and th implmntation of your CRM tratgy, you hav to dfin th bt tool it an b global, pializd, and analytial. Databa i only th firt tp of your implmntation, o you an want th bt, or you ould alrady think to th nxt xpanion to om dpartmnt or to a pifi u. W an quot A· for xampl, whih i a global oftwar olution; it! a diffrnt approah than R C implmntation oftwar Valu Analir. ·opulate t e database in you hav hon your tool, you hav to fill it with th information onrning th utomr. You hav to validat fiv tp |

our

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Vrify

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Validat

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Ddupliat

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Mrg and purg from 2 or mor our

Maintain t e database Whn having a databa, you hav to hk th information onrning th utomr and to updat it. Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani

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| Implementation of a Êustomer related database in t e RBC Êase:

Customer Related Database of RBC Dfin th databa funtion

Cutomr nd and buin valuation tratgy to dvlop individual tratmnt and valuat th valu of th buin of th utomr

Dfin th information

havioral information R C dvlop a olution bad on bhavioral

rquirmnt

ritria to rpond to th utomization produt and rvi nd

Idntify th information

Intrnal our R C u tranational data oming from th u of ompany! produt and aount information

our lt th databa

CCVM and valu analyr oftwar Valu orintd databa to giv

thnology and hardwar platform

a mtri and objtiv valu to ah utomr and dvlop analytial prforman and ytm intgration

·opulat th databa

ill in th databa and mix of all th information to obtain a prforming rult

Maintain th databa

Not yt don

V.| RECOMMENDATION CCVM and partiularly Valu Analyr oftwar giv mtri valu to ah utomr of R C. Conidring fiv finanial apt of ah utomr Valu Analyr ompil th information and obtain a mtri valu that th ank an ompar and laify objtivly. W an priv four advantag |

A nw way to gt information from utomr to ompany bottomup irulation of th information

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Improvmnt of th gmntation pro mor pri and fitting mor th xptation of th ompany

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Rduing gap with rality th information on utomr i bad on partiular data and not only on avrag. It man a mor ral approah of th utomr͛ at.

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Etablihmnt of analytial modl with CCVM, w an u prviou information w got from utomr and u it with urrnt on.

Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani

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| Howvr, w an  limit in th u of CCVM bau of th ytmati approah |

Automati profil CCVM math ah utomr to an tablihd profil whih do not allow him to hav a partiular ingl on.

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imitd numbr of ritria th rvi u Valu Analyr, whih man for th ompany hooing only 5 ritria and mayb mi om ritial information. It an b a narrow analyi bau vry ituation an hav indirt influn on ritria.

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No bhavioral approah th ytm fou on finanial data but do not inlud bhavioral information. Mayb th bhavioralbad olution i not ompltly dvlopd.

W an noti that an objtiv approah of bank utomr͛ profil i rlvant. In thi a, th main iu i to dvlop th CRM tratgy nough to ahiv an automati onidration of CCVM gnratd data. or xampl, with thi kind of pri gmntation you an improv your dirt markting with mail pronalization about th way that you ommuniat, th rvi you propo to go furthr in th utomr ontat. ut w hav to b awar that markting and ommuniation dpnd on oial in, whih man you hav to inlud human haratriti in th analyi lvl. ëo th implmntation of th " oming utomrfoud" viion of Royal ank of Canada, CCVM i a onidrabl and nary firt tool but ha to b ompltd by an additional appliation analyzr whih onidr bhavior. Morovr, thi tool implmntation prov that R C i now involvd in th proto implmnt CRM tratgy. ëh firt rahd, that w an  in igur 1 i 1)| Dvlop CRM tratgy |

ituation analyi

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Commn CRM duation

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Dvlop th CRM viion

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t prioriti

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Etablih goal and objtiv

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Idntify popl, pro and thnology rquirmnt

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Dvlop th buin a

Now R C tart to build CRM projt foundation, whih man |

Idntify takholdr

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Etablih govrnan trutur Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani

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Idntify hang Managmnt nd

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Idntify projt managmnt nd

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Idntify ritial u fator

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Dvlop rik managmnt plan

1) Develop CRM strategy

2) Build CRM ·rojeÊt Foundation

5) ·erformanÊe evaluation

3) Needs speÊifiÊation and partner seleÊtion

4) ·rojeÊt implementation

Figure 1 CRM ·rojeÊt design and planning proÊess

ëh or of th volution for R C i in it ond tp, o w an onlud that thy hav to intgrat takholdr and idntify diffrnt nd to go furthr in th implmnta tion. ëhy hav to think of xtrnal influn and intrnal miundrtanding. ëh implmntation of a utomrrlatd databa i th firt onfirmation of th awarn of th ompany to arh a bttr undrtanding of it utomr. ut if th ompany nvr validat th nxt tp, all of thi hang would b inffiint.

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Group 1 ʹ rvi Markting | Alli haron, Carin , Nur Afidah & tphani