Managing Director & Senior Partner
Retail banks today face significant challenges to growth and profitability. The erosion of customer trust, the slow economic recovery, and margin pressure stemming from a variety of sources are among the many factors that account for the current difficulties.
In search of growth opportunities in this environment, many banks are focusing on deepening their share of wallet with existing customers. In all regions—the Americas, Europe, and Asia-Pacific—financial institutions have launched marketing campaigns with slogans such as Reinventing Banking, Restoring Trust, and Deepening Customer Relationships. The goal is to make customers feel that their banking needs are being well looked after—to become, in a nutshell, more “customer centric.”
Yet to make those two words more than just a catchy phrase, banks that choose customer-centricity as a strategy must figure out how to transform their vision into actions that deliver on promises. Banks also need to understand the customer-value equation—not overinvesting in customers who are not likely to respond to new initiatives or whose long-term value to the bank is relatively low.
Some key questions present themselves:
By exploring these and related questions in detail, banks can gain the understanding they will require to cope both with current challenges and with those that lie ahead.
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2023. All rights reserved.
For information or permission to reprint, please contact BCG at email@example.com. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).