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7.3 Elements of the Win Cycle of a Bank

7.3.1 Overview

A win-situation for banks in the digital age means that customer satisfaction is optimised under consideration of other framework parameters, as this has a positive influence on the company's success. In a customer-centred bank architecture, the customer is at the centre of value creation.

They form the starting point of service provision: the impulse for a certain product or service comes from them or is created with a view to their needs at the customer interface. At the end of the value chain, the product or service is made available to them. At the same time there is an intensive exchange during the provision of the service—the contact with customers is used permanently in order to find out their level of satisfaction and to test their needs development (Fig. 7.2).

From a bank's perspective, it must be a declared goal to provide customers with

products or services that will delight them. Only this will make satisfied customers out of customers, who will remain loyal to “their” bank in the long term and ideally act as ambassadors for “their” bank. This in turn contributes to forming the reputation of the bank.[1]

Fig. 7.2 Win cycle of the bank (Source Own illustration, based on Huber et al. (2006, p. 68)

Ultimately, success for a bank is measured in key financial figures. However, it is important to note which influencing factors—including soft ones—have led to this success: How it is possible to measure adequately the proportion of recommending customers, their involvement in product development or the possible higher fault tolerance in a long-term customer relationship? Classic financial control parameters are being supplemented by such new factors as Net Promotor Score (NSP) (Capellmann et al. 2012). The NSP is derived from customer surveys and states the degree to which customers who recommend the company exceed dissatisfied customers (Net Promoter System 2013).

In the following sections the individual elements of banks' win cycles and their context will be explained.

  • [1] Reputation can be interpreted as one of the immaterial resources of a company. Reputation plays an important role in the attainment, improvement and defence of the competitive position and in increasing company value. Surveys of managers have shown that reputation is the most important immaterial resource (Hall 1992).
 
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