Research On The Model Of Differential Customer Relationship Management In Chinese Commercial Banks

After China's admission to WTO, its commercial banks will be directly under the immense pressure from foreign banks. At the very moment of worldwide famous banks pushing their ways into Chinese financial market, it is a decisive move for Chinese commercial banks to manage its customer relationship more efficiently so as to stand firmly in future competition.This paper aims to put forward the model of differential customer relationship management, which is applicable to the running of Chinese commercial banks and ways to put them into practice by taking into consideration their present customer relationship management condition and learning from the advanced experience of foreign commercial banks in this field.This paper first lays out pertinent theories to the models of differential customer relationship management and compares models of customer relationship management in China and in other foreign countries. On the base of analyzing the limitation of traditional models, this paper also proposes the model of differential customer relationship management concerning with the customer lifetime comprehensive contributions. Furthermore, the connotation and realization of this model, as well as the algorithm of the customer lifetime comprehensive contributions and the evaluation of differential customer relationship management are studied. Finally, current application of differential customer relationship management in Chinese commercial banks is analyzed in terms of practical cases and specific suggestions are proposed.Achievements in this paper are as following:Research on the principle of differential customer relationship management. Analyzing the limitation of traditional evaluation standard which rely on the scale or credit levels, introducing the concept of customer lifetime comprehensive contributions, and suggesting it as the principle of the classification of customers and differential customer relationship management.Research on the model of differential customer relationship management. Principles on differential customer relationship management in Chinese commercial banks are put forward on the base of the analysis of the defects in traditional models of customer relationship management. Banks' customers are divided into five types: VIP customers, important customers, general customers, potential customers and deficit customers. Their respective relationship management types are proposed: intergrowth, cooperative,automation, cultivating and retreating. The concrete methods to practice are also put forward in this paper.Research on the calculation method of customer lifetime comprehensive contributions. Upon the revising of Robert Welan's customer lifetime value model, Pointing out that the probability of the realization of the customer lifetime value, the indirect profit provided by customer and the risk derived from products and customer must be considered. Proposing the calculative model of the customers' lifelong contribution and its probability.The estimation index system of differential customer relationship management achievement and its calculation methods are proposed.This paper is valuable in perfecting customer relationship management model and to enhance the transformation of commercial banks' running ways.