Research On The Incentive Mechanism Of The Customer Relationship Manager In Ningbo Yinzhou Rural Cooperative Bank

Customer relationship manager (CRM) is becoming increasingly important to domestic commercial banks, therefore makes the research of effective compensation incentive mechanism necessary. In this essay, the author reviews the evolving process of CRM system at the start, and then introduces some relative theories and practices about incentive mechanism. To improve the compensation incentive mechanism of the CRM in Ningbo Yinzhou Rural Cooperative Bank (Yinzhou Bank), the author gives an analysis of its current situation, designs and discusses an improved incentive mechanism.Yinzhou Bank now takes a CRM incentive mechanism that mainly bases on simulation profit examination, and its compensation is made up of basic compensation, performance compensation, and welfare. The bigger part of compensation is in cash, and the smaller part is allocated by branch bank.The current CRM incentive mechanism has five key problems:Firstly, the incentive function of performance compensation is weakened because of the distraction of other non-compensation factors that seems more incentive. Secondly, instead of linking to the outcomes of annual performance review, the performance compensation is calculated with a fixed ratio set by the bank, which neglects the role of performance appraisal. Thirdly, the responsibility weigh to serve the customers is not clearly specified to certain CRM, which makes their compensation unequal to contribution. Fourthly, CRM's compensation is not closely related to the business benefits of the branch bank. Fifth, some indicators for performance appraisal are set unreasonably, with which the total work load is growing, while CRM's compensation can not be effectively increased.To deal with the five main problems, the author gives his thought for Yinzhou Bank: Firstly, stick to the principals of designing compensation incentive mechanism. Secondly, make the guidelines of compensation incentive mechanism. Thirdly, design a reasonable compensation system. Fourthly, develop effective performance appraisal system. Furthermore, five specific measures should be taken:Firstly, restructure the compensation incentive system. Secondly, link the performance compensation to the appraisal outcomes with a variable ratio. Thirdly, specify each CRM's responsibility weigh to serve the customers. Fourthly, strengthen the relation between CRM's compensation and business profits of the branch bank. Fifth, optimize performance appraisal indicators.