How a Bank is talking about Strategy

A recent planning session on the West Coast, we reviewed Wells Fargo's strategy as received in the annual report of a major bank. They provided a detailed description of their focus in service.

 
 

A recent planning session on the West Coast, we reviewed Wells Fargo's strategy as received in the annual report of a major bank. They provided a detailed description of their focus in service.

We believe this summary excerpted below, shows the importance major corporations place in building good service. Traditionally outstanding service is one of the areas where credit unions have had a significant advantage versus banks

“We’re still adding 100,000 new customers a month, more than two per minute. . . We’ve made outstanding progress . . . it cannot take us to the next stage of our company . . . What’s left? We believe it’s this. The quality of our customer service. . . We’re at least as good as our competitors. We consider that quite an accomplishment-but can a company that wants to be great, get there with average customer service?

It costs us five times as much to add new customers as it does to keep those we already have. Every two percent of customers we keep are equal to cutting costs ten percent.

Many customers who leave a financial services company, leave because they feel no one cares.

Time to put a stake in the ground. We’re in the service business. Service is not a commodity. It’s the value added. We want to be advocates for our customers. . . We want every one of our consumer households to buy an average of eight products from us, about double what they have with us today.

We’re creating a consistent process for elevating service quality to the same level of importance as sales. We do this by putting the customer at the center of everything we do:

    • Empathizing: “I know this can be upsetting”
    • Taking charge: “I’ll take care of that for you.”·
    • Promising and delivering: “I’ll call you back in 10 minutes”

We have only 25-30 percent share of our customers’ banking deposits. . . and only three percent of all of our customers’ financial revenue. . . Our customers buy three times more products from our competitors than they do from us.

We must evolve www.wellsfargo.com - our fastest growing delivery channel-from a transaction center to a relationship center. Our goal is to virtualize the bank. To achieve this we’ve gone beyond basic Internet banking to allow our customers to:

      1. See their latest balances from other financial institutions;
      2. Have wireless access;
      3. Invest in stocks, mutual funds. . . with access to real time quotes;
      4. Make regular investments in stocks in small batches;
      5. Pay for items they buy on the Internet;
      6. Have www.Wells Fargo.com personalized;.

End of excerpts.

Much of this could have been written by or for a credit union. The Lesson: Service matters

 

 

 

May 29, 2001


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