INTRODUCTION
Nowadays, quality service is the main goal for most of the business organizations in this challenging and fast changing commercial world. Customer satisfaction is one of the main concerns for them. An
effective Customer Relationship Management could be able to help a company to compete in the
market, acquire potential customers, retain profitable customers, lower operational costs, and
finally bring in a profit.
As the largest domestic bank in Hong Kong, HSBC adopted the Customer Relationship Management
system in order to maximize customer convenience and provide anytime, anywhere and anyhow
banking. Moreover, it is revolutionizing customer empowerment and beating its competitors in the
market place.
Company Background
The HSBC Group, one of the world’s largest banking and financial services organizations, had its
beginnings in Hong Kong more than 130 years ago. Today, the HSBC Group has some 10,000 offices
in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and
Africa.
Globally speaking, at the Group’s core lies domestic commercial banking and financial services,
which fund themselves locally and do business locally. Highly efficient technology links these
operations to deliver a wide range of international products and services, adapted to local
customers’ needs.
The Hong Kong and Shanghai Banking Corporation (HSBC) is the founding member of the HSBC
Group. It is the Group’s flagship in the Asia-Pacific region and the largest bank incorporated in Hong
Kong. Known in Chinese as Wayfoong (which translates as “focus of wealth” or “abundance of
remittances”), the bank is also one of the SAR’s three note-issuing banks, accounting for more than
63.6% of its banknotes.
HSBC provides a full range of personal financial and wealth management services in Hong Kong.
These include HKD/USD currency and RMB/multicurrency savings accounts, integrated accounts,
mortgage finance, personal credit services, hire purchase and leasing for motor vehicles, term
deposits and credit/debit cards, financial planning, investment services such as unit trusts, bonds
and certificates of deposit, local and overseas securities, broking services, Mandatory Provident
Fund investment options, and insurance. Services are distributed through channels such as HSBC’s
ATM network, internet banking service, 24-hour phone banking centre, more than 20 Mortgage
Advice Centers providing customized advice seven days a week, and a network of over 180
branches and offices. At the end of April 2004, online@hsbc, HSBC’s internet banking service, was
being used by over 700,000 customers.CRM PRACTICESCLEARWATER AND CRM.
Implementation:CLEARWATER AND E- CRM
BENEFITS OF CRM INITIATIVES TO CUSTOMERDefine the Best Experience
A loyal customer is a good customer. There are two Customer Relationship Management principles
about customer loyalty, customer satisfaction and customer experience:
.Only very satisfied customers will be very loyal to a company .
.Customer Satisfaction equals Customer Experience minus Customer Expectations .
From the above two principles, customers can become very loyal if they are very satisfied. And,
customer satisfaction can be achieved if they offer a better (i.e. higher level of) customer experience or
meet with low customer expectations. As customer expectations are more or less uncontrollable,
increasing customer satisfaction by increasing the quality of customer experiences is a big topic in
Customer Relationship Management.
By performing the Customer Experience Management (CEM), the company can find out the critical
needs of and decisive stages in dealing with the customers make resource planning, marketing, as well
as company strategies effectively and efficiently. Under CEM, customer critical moments are defined
accordingly under each part of the customer process cycle, which are the PRE-purchase/consumption,
AT-purchase/consumption, and POST-purchase/consumption. Each customer process cycle will have its
own customer multi-channel touch points, and for simplification, they are grouped into “Physical
Touch”, “Call”, “Internet” and “Others”.
Here is the CEM critical moment spreadsheet which lists the critical moments of HSBC Personal Banking customers in their customer process cycle of Pre-Purchase, At-Purchase and Post-Purchase:
CUSTOMER EXPERIENCE MANAGEMENT & CRITICAL MOMENTS (TOUCH POINTS)
1. In the Pre-purchase Phase, there are eight customer touch-points, which include:
Customer Service Center – Financial Analysis .
On-site service – Financial Analysis .
Events – Exhibition .
Inbound Calls – Call for Enquiries .
Outbound Calls – Tele-Marketing .
Inbound Email – Email for Enquiries .
Outbound Email – e-Marketing .
Portal – FAQ session .
Advertising – Image Building .
2. In the At-purchase Phase, there are ten customer touch-points, which include:
Branch – Make Transaction .
Customer Service Center – Customer Package Upgrading .
On-site service – Contract Signing .
Events – Sales Road Show .
Inbound Calls – Place Order by Phone .
Outbound Calls – Tele-Sales .
Inbound Email – Make Transaction by Email .
Outbound Email – e-Sales .
Portal – e-Banking .
Advertising – Invitation to Use the Service .
3. In the Post-purchase Phase, there are nine customer touch-points, which include:
Branch – Customer Enquiries .
Customer Service Center – Customer Enquires .
On-site service – Financial Review .
Events – VIP Gathering .
Inbound Calls – Call for Complaints .
Outbound Calls – Follow-up by Phone .Inbound Email – Email for Complaints .
Outbound Email – e-Follow-up .
.Portal – DIY services, e.g. customer information update .
Due to the different needs of customers in their Pre-purchase, At-purchase and Post-purchase,
customer critical moment will be different in every customer process cycle. For HSBC Personal
Banking, the critical customer moments are Financial Analysis for Pre-purchase, Making
Transaction for At-purchase and Customer Enquires for Post-purchase.
PRE-Purchase
Financial analysis in a customer service centre or as an on-site service – The most important
mission in the customer PRE-purchase process is to attract new customers. In HSBC Personal
Banking, financial analysis is an effective way for asking customers to buy the bank’s product.
So, it is regarded as the critical moment for the potential customers, which are still only a
prospective ones at this stage.
In order to serve the potential customers, HSBC Personal Banking employs many professional
financial planers. Together with the internal training in customer service, banking service and
investment knowledge, they are all well equipped in their own position.
AT- Purchase
Making transactions at the branch – Among all of the banking services, making a transaction is always
the most critical service from the point of view of the customers. Customers expect that they can make
and complete their transactions within a short period of time and in a convenient way.
Once identified as a critical customer interaction point, the customer satisfaction levels in this specific
area should be analyzed. With a network of over 180 branches and offices throughout Hong Kong, HSBC
believes that the location of their branches are convenient enough for every single personal banking
customer to reach within a short journey.
However, due to the large numbers of its customer base, HSBC’s Personal Banking service cannot meet
the customers’ need for “fast” service all the time: there are always long queues at HSBC branches that
keep customers waiting for over 30 minutes. After considering the costs and effectiveness factors
against the customer satisfaction factors, instead of opening more branches HSBC decided to improve
this critical customer interaction moment in the following ways:
1. Dividing customers into customer groups, serving them separately according to their needs and value
to the bank (similar to the customer segmentation of the previous section).2. Changing general service branches into service centers for specific functions, for example, HP Centers,
Mortgage Advice Centers, Day and Night Centres, etc.
3. Enhancing the automated channels which include the ATM network, internet banking service, 24-hour
phone banking centre, etc.
POST-Purchase
Customer enquiries to the customer service centre or from inbound calls – It is understandable that
customers need professional advice and assistance in their banking/financial service. So, at HSBC
Personal Banking, customer enquiries are considered the critical service moment for customers in the
Post-purchase customer process.
For customer enquiries to the customer service centre, as mentioned in the At-purchase process, there
are dozens of Day and Night Centers in Hong Kong to specially deal with customer enquiries.
For the inbound customer enquiry calls, once again by considering the costs and effectiveness factors
against the customer satisfaction factors, HSBC is moving its customer call center to a lower cost city,
such as Genzheng, China.
Rollout
After finding out about the best customers, and about their customer experience (critical moments),
Customer Relationship Management is ready to undergo implementation by working together with the
other four Customer Relationship Management factors, which are strategy, people, process and
technology, a company-wide kick-off should be made by the top management of HSBC.
Feedback Mechanism
Having a tailor-made version of the CRM 3C Method that is best suited to the latest company conditions
is essential as it will directly affect how successful the Customer Relationship Management can be.
Therefore, adopting a good feedback mechanism, repeating cycles of running the implementation, and
making adjustments, are all essential steps.HSBC PREMIER
STATIONS OF EXPERIENCE
IN BRANCH EXPERIENCE:
Drive In: There is a separate parking space for the Premier customers and as soon as the
customer reaches the palace, there is a person standing there at the parking entrance who takes up the
duty of Parking your car and driving it back to the customer as soon as he is done with his work. This
valet parking service is not available at all banks which makes it a unique experience for the customer
and makes the customer feel very important. It comes as a delight to most of the bank’s premier
customer.
Entrance: The entrance for the Premier customers is segregated from the normal entrance of
the Bank. As soon as a Premier customer reaches the Bank, there is a person standing at the entrance
who escorts and guides the Premier customers towards a separate entrance which is specially for the
Premier customers. There is literally a red carpet welcome for the Premier customers and the customers
are guided to a plush waiting and transaction room meant only for the Premier customers.
Lobby : The Lobby to which the Premier customers are escorted is completely different from the
normal lobby of a bank. It is delighting, having plush lounge with leather sofas, LCD panels, reading
materials, and choice of snacks and beverages for the customer. There is always a relationship manager
who is waiting for the customer and he is responsible to handle each and every query of the customer in
a efficient manner. As soon as the Premier customer enters the lobby a relationship manager is assigned
to him who acts a investment consultant for the Customer.
Private dealing area – Inside the Premier Bank space there are empty cabins which are not
assigned to any Relationship manager as such and a Relationship manger can take his customer to any
of the empty cabins and discuss about the issues that concerns the customer. The customer may even
get the special service of a Portfolio Manager to handle his investments and Portfolio efficiently. The
Private Cabins to which the customers are taken are also very Plush in nature with comfortable sofas,
LCD screens and very intriguing decor.
OUT OF BRANCH EXPERIENCE
• Mobile Banking – A Premier Customer is assigned a Relationship Manager & a Portfolio
Manager by the Bank and at any point of time the Customer can personally call them whenever
it is needed. HSBC has taken the customer service level to so far that facilities like making a
draft, depositing money and several other services are provided to the customers at their
doorstep. The only thing that the customer has to do is to call up the bank and a bank executive
is sent to customers doorstep for providing convenient service.• Internet Banking – The Bank provides state of the art security & extremely
personalized website keeping the convenience of the customers in mind. In order to encourage
internet banking among the customers who are not so well versed with internet and computers,
HSBC Bank also provides customer web education. These steps are taken by the bank only
keeping the customers convenience in mind.
DELIGHTING THE CUSTOMER
• Cheque bounce protection: One very delighting service that HSBC provides is that
whenever there is a case that a customers cheque is going to bounce due to insufficiency of
funds in the customers account, the Bank calls up the customer and if needed the bank clears
the cheque if the customer is a loyal one and promises to deposit the amount with the bank in
some later date. By providing this service the Bank makes sure that its customers do not get a
bad name in the market and helps its customers to meet the short term crisis.
• Overdraft on savings account (interest free): The bank also provides a
overdraft facility on the saving account up to some limit which is interest fee up to a particular
time period.
• Personalized cheque books and cards.
• Access to ‘PREMIER lounges’ all across the globe.
• Access to ‘PREMIER lounges’ at major airports across the
globe.
• 24*7 banking.
• Cash/cheque/draft at your doorstep facility.
• Tickets to premier shows, concerts, fund launches.
• Cheque pro facility: The Cheque Pro facility is a new thing that has been introduced by
HSBC for the convenience of its customers. According to this facility a database is maintained by
the bank on how many cheques a customer is using ,and as soon as the cheques in the cheque
book of a customer is going to finish the Bank itself sends a new cheque book to the customer without even having the customer to ask for the cheque book.
• Chauffer driven test drives (Audi, Mercedes, BMW): The bank from
time to time provides its Premier customers with passes for free test drive and chauffer driven
test drives which serves the purpose of both delighting the customer as well as luring the
customer to buy the expensive product through the Bank at easy finance.
• Cheques payable at par across all branches.
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