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Customer retention is marketing strategy that is based on customer behavior. The main activity of the customer retention goes behind the scenes of relationship marketing and loyalty marketing. The philosophy of customer retention is derived from the earlier and current customer behavior as good indicator of future customer behavior and the marketing circle between the marketer and the customer of the actions, feedback and repeat. This essay discusses the various aspects of Barclay’s customer retention and management.
For any company to survive in the highly competitive banking services industry, the nurturing and retention of the customers is the only growth approach and it is achievable through the prediction and understanding the customers, behaviors, needs and decisions that are significant to the company’s success. Barclays Company remains to retain a very strong customer base. This is being enhanced by various factors such as the intensive use of new innovations and technology, its flexibility in offering services, high degree of creativity, effective communications across the employees and customers and the establishment of contextual and core balances. The company is capable of adjusting itself in order to adapt to the varying times that a good foundation for the company to be admired by the customers (Leslie, H. and Ackrill, M. 2001).
Barclays bank has good relationship with its customer through its customer review team (CRT).The team which is comprised of specialist retail agents from the bank helps the customers who have issues about their finances. The team indentifies the customers being at potential financial risk and initiates a phone contact with them. The specialist advises the customers and recommends solutions to assist customers address their concerns, with a target of preventing financial risk from getting worse. The bank makes a follow-up calls to make sure, it gets the contact and customer feedback.
Barclays Company uses relationship marketing which creates strong relationship with the customers. It has developed long term relationships with its customers since it is comparatively cheap to sale the services to the existing customer than to new customers. The Barclays’ relationship marketing has made the customers to receive more from the company as compared to other competitors and it has made the customers to remain royal to the company. Also, it has made the company’s customers to have a sense of well being as they have relationships that are long term (Szmigin, I. 2003).
Due to high customer demands for more convenient channels, Barclays bank turned to the use of the customer relationship management (CRM) which has helped the company to maintain close relationships with its customers who are in need of the financial and banking services that are offered by the bank. Also, this CRM assists the bank in the optimization of the marketing expenditures, execution of strategies, creation of effective dialogue with the customers and creation of customer relevance. All this aspects ultimately benefits the well being and health of the Barclays Company. The company has well planned strategies which focus on the customers and facilitates customer retention, sales growth and customer satisfaction. For instance, the company’s salespeople are always encouraged to direct their focus and maintain close relationships with the company’s key customers. These relationships are important and beneficial to the company as they result from more contacts with the company’s customers to be in line with their varying requirements (Swift, R. 2001).
Finally, the Barclays bank has used successive fraud combat methods using the security and fraud software. It has also launched a customer support, information and advice which address incidents affecting customer’s accounts through its Customer Response Team. The team actively addresses fraudulent activities, delays in payments and any bank errors, by contacting the concerned customers. For instance, this has resolved 66 incidents and has contacted more than 10,500 customers since 2009.It is a step towards retaining customers trust in Barclays and recovering relationship (REMORPH, 2006)
The bank has identified their target groups of customers and their respective needs and it has developed the services that are of high value to these customer groups. The bank has been updated along with the varying information technology requirements through a massive investment into the new technology levels that facilitates the provision of high quality services to the customers. For instance, the advancement in technology led to the elimination of weaknesses in the practices of the company and minimizing the failures that negatively affects the customers (Growth Strategies of Barclays Bank).
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Barclays Company has a brand name that gives it a good intellectual property and enables it to have a good reputation towards its customers in the market. The brand name has also made the bank to retain its strong competitive advantage which has enhanced trust in the company’s customers. Currently, the company’s brand name and intellectual property is in the forefront in the internet which makes it possible for the customers to take the advantage of this situation. The electronic business enables Barclays to protect its securities online (Bainess, P., Egan, J. and Jefkins, F. 2004)
Conclusion and recommendations
The achievement in technology such as the effective use of customer review team (CRT), customer relationship management and electronic business has promoted the Barclays Company marketing perceptions. The Barclays’ marketing services are of great emphasis on the customers. For the bank to further enhance its customer retention, it should reduce some of the weaknesses in its operations. For instance, the bank has a small presence in some market places such as Asia. Therefore it should increase the plans to expand its services to these markets so as to retain the available potential customers. Also, there is a controversial issue concerning the ethics of the bank in its provision of services to the people associated with the activities of ZANU PF. This issue should be resolved for the bank to retain and foster good relations with these people (REMORPH, 2006).
Finally, the bank should look for ways of surviving in stiff competition from other financial companies and microfinance institutions which offers cheap services to customers. For instance, it should have access to many customers as they work at ground level and it should increase the customers bargaining power in the market.