The Application Of Relationship Marketing In China's Commercial Bank

The operation environment of China's commercial bank is undergoing rapid changes. On one hand, with the popularization of financial knowledge and the development of IT, the customer demand characteristics and buying behavior is changing; On the other hand, according to our government's commitment to the entrance of WTO, our banking industry will open completely to foreign investors in 2006. Which means that competition in China's commercial bank is more complex and intensive, so traditional marketing concept is outdated. In order to improve the competition ability of China's commercial bank, we must implement relationship marketing. The research purpose of this paper is as a reference to the application of relationship marketing in China's commercial bank, it is divided into 6 parts.At first, this paper introduces some basic theories of relationship marketing. Relationship marketing is a new concept came out in 1980s. It regards marketing as relationship, networks and interactions. Compared to traditional marketing concept, it pointed out the focal point of marketing is creating value rather than distributing value, it pays more attention to customer service and emphasizes cooperation and win-win condition. The market range of relationship market is very large, it consists of not only customer market, but also internal market, supplier market, intermediary market, referral market and influencer market. Then it discusses the feasibility and necessity of the application of relationship marketing in China's commercial banking industry. Because the financial product or service is characterized by homogeneity, intangibility, inseparability and perishability, relationship marketing is very adaptive for bank industry. The premise of the implementation of relationship marketing in commercial bank is to calculate relationship value from prospective of two sides (customer and bank), which can help commercial bank better understand the win-win idea and choose reasonable level of relationship marketing by distinguishing customer. The goal of relationship marketing in commercial bank is to build up customer loyalty, because 80% of the total profit is come from 20% loyal customer. Factors which have great impact on customer loyalty are as follows: customer satisfaction, customer trust, shifting cost and customer perceived value. To establish customer loyalty, the commercial bank must carry out customer loyalty plan, increase customer shifting cost, improve customer perceived service quality by offering attached service. China's commercial bank should learn from the cooperation bank of USA. , which has many valuable experience in establishing customer loyalty. To implement relationship marketing successfully, there must be the following guarantees, which includes: (1) The reform of commercial bank guided by relationship marketing concept, (2) The implementation of internal marketing, (3) The application of information technology, (4) The establishment of cooperation network.In the end, I take China's Merchants bank as an example, do an empirical analysis on the implementation condition of relationship marketing in China's commercial bank.