1. Mark 3014 Individual Customer Management
Report
Report prepared for Newbank
Ningfei Lei
P13219249
Word count 2146 words
Mark 3014 Customer Management Report 2013 - 2014

2. Table of Contents
1 Introduction ......................................................................................................4
2 Why Newbank should use the QCi model to help them become more
customer focussed........................................................................................4
The QCi CM model is a customer management assessment tool, which covers
interrelated elements including analysis and planning, the proposition, the
customer life cycle, competitors, the customer experience, processes,
people, technology and measuring the effect. Particularly, at the heart of
the QCi CM model is the customer life cycle. Integration of all the elements
is essential in order to achieve excellent performance (Woodcock, Stone, &
Starkey, 2001). ............................................................................................5
Roger Martin (2010) believes that companies can improve the quality of
corporate decision making by making customers the top priority, because
by taking customers into account, companies are forced to focus on
improving the operations and the products and services instead of spinning
lines to shareholders. He also maintains that determining what customers
value and focusing on pleasing them all the way is an optimization formula.
......................................................................................................................5
3 Develop an appropriate value propositions for credit card customers and SME
businesses.....................................................................................................6
4 Creating value from the customer base for credit card customers and SME
businesses ...................................................................................................7
5 Why and how Newbank should adopt a “systems thinking” approach to
organising their business...............................................................................8
6 How Newbank can work towards providing an outstanding customer
experience ....................................................................................................9
............................................................................................11
11
7 Kano Model for SME Businesses....................................................12
8 Developing a social media strategy for Newbank ...........................................13
9 Conclusions......................................................................................................13
This report has been well prepared for Newbank to help its development with
all-round aspects composed of customer focus, value proposition, value
creation, systems thinking approach, customer experience and social
media strategy, with combination of several classic models including QCi
Model, Kano Model and MoSO Model. With massive research and valid
theoretical support, practical proposal for Newbank has been elaborately
Mark 3014 Customer Management Report 2013 - 2014

3. designed, which is highly thought to be beneficial for Newbank in the long
run...............................................................................................................13
10 References.....................................................................................................14
Mark 3014 Customer Management Report 2013 - 2014

4. 1 Introduction
The aim of this report is to help Newbank for its further development in terms of
following sections.
First, the author will recommend QCi model for Newbank to become more customer
focussed. With an appropriate value proposition provided for credit card customers
and SME businesses, the report will offer suggestion on how to create value from
credit card customers and SME businesses in an ethical way. To enhance business
organization, the report emphasizes on systems thinking approach. Moreover, advice
on providing outstanding customer experience will also be given. Finally, the report
ends with developing a social media strategy for Newbank.
2 Why Newbank should use the QCi model to help
them become more customer focussed
2.1 QCi Model
Mark 3014 Customer Management Report 2013 - 2014

5. The QCi CM model is a customer management assessment tool, which covers
interrelated elements including analysis and planning, the proposition, the
customer life cycle, competitors, the customer experience, processes, people,
technology and measuring the effect. Particularly, at the heart of the QCi CM
model is the customer life cycle. Integration of all the elements is essential in
order to achieve excellent performance (Woodcock, Stone, & Starkey, 2001).
2.2 Why Newbank should become more customer
focussed
Roger Martin (2010) believes that companies can improve the quality of
corporate decision making by making customers the top priority, because by
taking customers into account, companies are forced to focus on improving the
operations and the products and services instead of spinning lines to shareholders.
He also maintains that determining what customers value and focusing on
pleasing them all the way is an optimization formula.
2.3 The application of QCi Model and the benefits
According to the QCi Model, before planning on the basis of cost-effective
acquisition, retention and penetration of the customer base, Newbank should first
analyse the value, behaviour and attitudes of various customers and customer groups.
After making a plan with clear direction and guidance, the proposition should be
defined in terms of product, price, service, relationship, and the like, to identify how
the commitment made by Newbank should be delivered. Particularly, Newbank
should communicate the proposition effectively to both customers and to the staff.
Most importantly, Newbank needs to identify at which stage customers currently are
in customer life cycle, while within each stage, which issues Newbank should focus
on to efficiently deliver services. Processes, people and organisation should be set up
to improve customer management activities, throughout which the customer
satisfaction should be examined and how Newbank can be competitive should be
considered. The final step is measuring the retention, efficiency, acquisition and
penetration for further development. Lastly, advanced technology will facilitate
customer management of Newbank. Generally, QCi Model clearly indicates the steps
of customer management and the aspects Newbank should address, which is
beneficial to enhance the effectiveness and efficiency.
Mark 3014 Customer Management Report 2013 - 2014

6. 3 Develop an appropriate value propositions for
credit card customers and SME businesses
3.1 Credit card customers
The core proposition elements of the value propositions for credit card customers
include safety, low transaction cost, convenience and credit-card enhancements. As
Khurana and Singh (2011) state, everyone carries credit card for its convenience,
safety, easiness and even style. Stavins (1996) argues that consumers are also
sensitive to the value of credit-card enhancements such as frequent-use awards and
extended warranties.
Given the value proposition mirror, Newbank is supposed to meet customers’ needs at
different levels. The safety of credit card is of vital significance. Under insecure
condition, the customer may suffer huge loss with no clue. Besides, credit cards
should be convenient enough for the customers. If customers can not consume with
credit card at some shopping malls or restaurants, holding a credit card can be less
convenient than paying by cash. Therefore, the safety and convenience are must
haves, which should be strength area of Newbank. While most of the consumers are
cost sensitive, low transaction cost, which is considered to be nice to fulfill, will make
them more willing to use credit card, thus Newbank should be quite strong in
preventing transaction cost as possible. However, credit card enhancements are of
least importance.
3.2 SME businesses
As for SME businesses, the core proposition elements are, loan approval, cash
management, lending flexibility and rewards program. However, small and medium
enterprises have rather limited access to loans (Boogearts et al., 2000; Barlett et al.,
2002), although they play an important role in transitional economies (Bagnasco and
Sabel, 1995; Levitsky, 1996; Scase, 1997; Bateman and Lloyd-Reason, 2000). While
SME businesses own limited funds, which can seriously constrain their start-up or
improvement, unlike large enterprises, loan approval without over rigorous rules is a
must to be offered for SME businesses by Newbank. To be successful, banks must
develop a product that includes cash management and lending flexibility (Wilson,
2002). For SME businesses, cash flows and the flexibility of borrowing largely
concern with efficiency, so Newbank should try to fulfil efficient cash management
and high lending flexibility. Similar to credit card customers, rewards program such
as airline miles program that allows businesses to accumulate points are of less
concern for SME businesses (Wilson, 2002).
The proposition mirror (Credit card customers)
Customer Needs
Ok to fulfil but unimportant: Credit card enhancements
Nice to fulfil: Low transaction cost
Mark 3014 Customer Management Report 2013 - 2014

7. Must haves: Safety, convenience
Company strength area: Safety, convenience
Company quite strong: Avoidance of transaction cost
Company not strong: Credit card enhancements
Company Offer
The proposition mirror (SME businesses)
Customer Needs
Ok to fulfil but unimportant: Rewards program
Nice to fufil: Efficient cash management, high lending flexibility
Must haves: Loan approval
Company strength area: Less rigorous loan approval
Company quite strong: Efficient cash management, high lending flexibility
Company not strong: Rewards program
Company Offer
4 Creating value from the customer base for credit
card customers and SME businesses
4.1 Why Newbank need to create value from the customer
base in an ethical way
Chavez (2003) pointed out that the unethical practices like “fill in the pockets” of the
banking decision-makers, say, politicians, lobbyists and executives, have
consequently spawned extensive scandals in the banking industry. Royal Bank of
Scotland was criticised for executives given shares and staff paid bonuses in spite of
its tax-payer bail-out (Croft, 2009). Chavez (2003) also notes that unethical or
immoral practices is harmful for banking business and deters future growth. Lloyds
has dropped mortgage brokers due to concerns over suspected fraud (Powley, 2011).
Banking is fundamentally a business of trust (C Kendric Fergeson, 2004). To develop
a new ethical business model of banking, it is necessary for Newbank to build up
responsibility and honesty towards customers, regarding the sources of the funds and
how they utilize the money, so that it is able to gain trust and loyalty from the
customers. It is worth learning from the Co-operative Bank to only invest in
Mark 3014 Customer Management Report 2013 - 2014

8. businesses with social responsibilities rather than those irresponsibly achieve their
prosperity (Harvey, 1995).
4.2 Credit Card customers
Ethical banking can be communicated to the customers with refined brochure at
branches or by direct email (Harvey, Brian, 1995). Applying the REAP measures,
which refers to Retention, Efficiency, Acquisition and Penetration, Newbank should
retain more highly attractive customers with high credits by offering high-quality
service to improve retention rate. Processes like returning funds for used credits
should be delicately designed for customers’ convenience to appeal to and deliver
value from customer. Rather than high cost or low worth prospects, Newbank should
attract high worth prospects that use credit cards with high frequency, like the
customers who frequently travel abroad or take business trip in other countries, or the
consumers who prefer to make consumptions with credit card. Moreover, Newbank
can cross sell other financial products or insurance to current customers who may
have a propensity to buy.
4.3 SME businesses
Similarly, putting REAP measures into practice of transactions with SME businesses,
Newbank should retain more SME businesses with highly potential profitability in the
long run. To create value from SME businesses, technology should be designed to
enhance the efficiency. To maintain high customer quality, Newbank is supposed to
attract SME businesses who have established plan and have potential growth in the
future to afford the loan, rather than those who can hardly survive in the market or are
even in debt.
5 Why and how Newbank should adopt a “systems
thinking” approach to organising their business
5.1 Reasons for adopting a systems thinking approach
Systems thinking includes several merit characteristics, such as a focus on
relationships and connections, explicit questioning of boundaries as well as
expectations of emergent properties and change. Particularly, the main virtue of the
systems thinking approach is a capacity to enable the integration across the
dimensions of sustainability (Smith, 2011). The comprehensive application of systems
thinking encompasses its use as a means for facilitating concrete action, according to
Bosch et al. (2007), and its uses as a method to transform one’s way of viewing and
acting in the world (Bawden and Packham, 1998). In the light of Cabrera et al. (2008),
systems thinking is “interdisciplinary” and may act as a bridge between the physical,
natural, and social sciences.
Mark 3014 Customer Management Report 2013 - 2014

9. 5.2 How Newbank should adopt a “systems thinking”
approach to organising their business
In the light of the statements above, it is significant for Newbank to adopt a “systems
thinking” approach to organising their business. As the MoSO model shows, the daily
work processes of Newbank including income generation, support and regulatory
activities should be based on customer needs. Viewpoints from the customer should
be valued to redesign the whole system for further improvement to best satisfy
customers with the resources that Newbank owns. During this process, the various
cultures of customers, societal influences and the environment should be taken into
account.
6 How Newbank can work towards providing an
outstanding customer experience
In order to set itself apart from the competitors including RBS, Lloyds, which
have presented awful customer experience, Newbank should try to provide
outstanding customer experience.
Mark 3014 Customer Management Report 2013 - 2014

10. Banks are able to gain competitive edge with the ability to optimize profits by
reducing risks, improved information flows, high level of customer satisfaction
and loyalty (Binks and Ennew, 1997; Ennew and Binks, 1999; Petersen and Raj
an, 1994; Sharpe, 1990; Tyler and Stanley 1999b; Zeithaml et al., 1996).
Customers of financial services can be benefited from greater access to finance,
favorable rates on loans, higher perception of service quality, low-level stress,
avoidance of switching cost and enhanced convenience (Binks et al., 1992; Binks
and Ennew, 1997; Bitner, 1995; Ennew and Binks, 1996; 1999; Petersen and
Rajan, 1994).
Given the survey conducted by a customer experience company [24]7 suggested
that 50 percent of customers start their interactions with a credit card provider on
the phone, credit card providers should lay more stress on the phone channel
solution to increase customer loyalty, satisfaction and their overall experience
([24]7 Customer Service Experience Survey, 2014). Thus, hot line staff of
Newbank should be trained professionally to provide superior service by offering
practical suggestion and guidance for customers. Moreover, Newbank can learn
from China Guangfa Bank to improve SME businesses process and risk control
technology and make a SME financing solution to gain popularity in the market
(The Banker, 2011), and to enhance the efficiency of creating value from key
customer groups.
This report adopts Kano Model to analyze the outstanding customer experience
factors concerning the core value proposition elements mentioned above. As the
graph shows, the successful customer experience factors of customers and SME
businesses are slightly different. For credit card customers, “must be” includes
safety, convenience, efficient phone service, high-quality on-site service; “more is
better” consists of improved information flows, low transaction cost, low-level
stress since most of the customers are cost sensitive; credit card enhancements are
not necessary while can create delightful experience in certain cases. As for SME
businesses, they emphasize most on information flows, greater access to finance
since these are the fundamental to get businesses started; “more is better” includes
favorable rates on loans, higher perception of service quality, reducing risk;
“delighter” is rewards program.
Mark 3014 Customer Management Report 2013 - 2014

11. Delighter
Credit card
enhancements
Kano Model for Credit Card Customers
Mark 3014 Customer Management Report 2013 - 2014
More is Better
Improved information flows
Low transaction cost
Low-level stress
Must Be
Safety
Convenience
Efficient phone service
High-quality on-site service
Delight
Neutral
Dissatisfaction
Absent Fulfilled

12. Delighter
Rewards program
7 Kano Model for SME Businesses
Mark 3014 Customer Management Report 2013 - 2014
More is Better
Favourable rates on loans
Higher-perception of service quality
Reducing risks
Must Be
Improved information flows
Greater access to finance
Delight
Neutral
Dissatisfaction
Absent Fulfilled

13. 8 Developing a social media strategy for Newbank
Social media has been witnessed a tremendous growth in popularity around the world
because it satisfies users’ desire to express themselves and to “peep” by seeing the
activities of the people they care. Most of the top companies in the world make good
use of its four key values, which includes time, audience, cost and relations, for
internal communications (Dong-Hun, 2010).
Newbank should also make full use of the social media. Firstly, the most basic way is
constantly sending direct e-mail to customers to inform the latest information of the
bank to keep close relationship with customers. Secondly, Newbank can use
Facebook to deal with customers’ complaint and queries promptly, which helps to
create a friendly and accessible image. To enhance accessibility, there should always
be staff online to assist customers, so that problems can be solved efficiently, which
will contribute to the responsible and reliable image of Newbank. Moreover, positive
word-of-mouth will get customers like its page and even encourage their friends like
its page, helping Newbank to attract more potential customers.
9 Conclusions
This report has been well prepared for Newbank to help its development with all-
round aspects composed of customer focus, value proposition, value creation,
systems thinking approach, customer experience and social media strategy, with
combination of several classic models including QCi Model, Kano Model and
MoSO Model. With massive research and valid theoretical support, practical
proposal for Newbank has been elaborately designed, which is highly thought to
be beneficial for Newbank in the long run.
Mark 3014 Customer Management Report 2013 - 2014

14. 10 References
[24]7 Customer Service Experience Survey Finds the Phone Continues to Be an
Important Channel for Credit Card Customers", 2014, Entertainment Close - Up, .
Bagnasco, A. and C. Sabel (eds.), 1995, Small and Medium-Size Enterprises, London:
Pinter.
Bartlett, W., M. Bateman and M. Vehovec (eds.), 2002, Small Enterprise
Development in South-East Europe: Policies for Sustainable Growth, Boston: Kluwer
Academic Publishers.
Bateman, M. and L. Lloyd-Reason, 2000, ‘Small firms inCentral and Eastern Europe’,
in D. Jones-Evans and S. Carter (eds.), Enterprise and Small Business: Principles,
Practice and Policy, London: Prentice-Hall, pp. 259–279.
Bawden, R. J., & Packham, R. G. (1998). Systemic praxis in the education of the
agricultural systems practitioner. Systems Research and Behavioral Science, 15(5),
403–412.
Binks, M.R., Ennew, C.T. and Reed, G.V. (1992), "Information asymmetries and the
provision of finance to small firms", International Small Business Journal, Vol. 11
No. 1, pp. 35-46.
Binks, M.R. and Ennew, C.T. (1997), "The relationship between UK banks and their
small business customers", Small Business Economics, Vol. 9, pp. 167-78.
Bitner, M.J. (1995), "Building service relationships: it's all about promises", Journal
of the Academy of Marketing Science, Vol. 23, pp. 246-51.
Boogearts, M., S. P. Ciarli, D. Czira´ ky, E. Peterlini and S. Tisˇma, 2000, Analysis
Report: SME Development in Croatia, Bruxelles: ECODES Consortium.
Bosch, O. J. H., King, C. A., Herbohn, J. L., Russell, I. W., & Smith, C. S. (2007).
Getting the big picture in natural resource management-systems thinking as ‘method’
for scientists, policy makers and other stakeholders. Systems Research and
Behavioral Science, 24(2), 217–232.
Cabrera, D., Colosi, L., & Lobdell, C. (2008). Systems thinking. Evaluation and
Program Planning, 31(3), 299–310.
Chavez, J. 2003, Morality and moral reasoning in the banking industry: An ethical
and cognitive moral development examination, Nova Southeastern University.
C, K.F. 2004, "Ethical banking", American Bankers Association.ABA Banking
Journal, vol. 96, no. 6, pp. 14.
Mark 3014 Customer Management Report 2013 - 2014

15. "China Guangfa Bank: Corporate statement - SME business leads to success", 2011,
The Banker, .
Croft, J. 2009, RBS executives given pound(s)5m turnround incentive, London (UK).
Dong-Hun, L. 2010, "Korean Consumer & Society: Growing Popularity of Social
Media and Business Strategy", SERI Quarterly, vol. 3, no. 4, pp. 112-117,9.
Ennew, C.T. and Binks, M.R. (1996), "Good and bad customers: the benefits of
participating in the banking relationship", International Journal of Bank Marketing,
Vol. 14 No. 2, pp. 5-13.
Ennew, C.T. and Binks, M.R. (1999), "Impact of participative service relationships on
quality, satisfaction and retention: an exploratory study", Journal of Business
Research, Vol. 46, pp. 121-32.
Harvey, B. 1995, "Ethical Banking: The case of the Co-operative bank", Journal of
Business Ethics, vol. 14, no. 12, pp. 1005.
Khurana, S. & Singh, S.P. 2011, "An Analytical Study of Customer's Preferences and
Satisfaction in Credit Card Industry", IUP Journal of Bank Management, vol. 10, no.
1, pp. 71-87.
Levitsky, J. (ed.), 1996, Small Business in Transition Economies: Promoting
Enterprise in Central and Eastern Europe and the Former Soviet Union, London:
Intermediate Technology Publications.
Petersen, M.A. and Rajan, R.G. (1994), "The benefits of lending relationships:
evidence from small business data", Journal of Finance, Vol. 49 No. 1, pp. 3-37.
Powley, T. 2011, Lloyds drops mortgage brokers after uncovering suspected fraud,
London (UK).
Roger Martin. (2010). The Age of Customer Capitalism. Harvard Business Review. 3
(3), p2-5.
Scase, R., 1997, ‘The Role of Small Businesses in the Economic Transformation of
Eastern Europe: Real but Relatively Unimportant?’ International Small Business
Journal 16(1), 13–21.
Sharpe, S.A. (1990), "Asymmetric information, bank lending, and implicit contracts:
a stylized model of customer relationships", The Journal of Finance, Vol. XLV No. 4,
pp. 1069-87.
Smith, T. 2011, "Using critical systems thinking to foster an integrated approach to
sustainability: a proposal for development practitioners", Environment, Development
and Sustainability, vol. 13, no. 1, pp. 1-17.
Mark 3014 Customer Management Report 2013 - 2014

16. Stavins and Joanna (1996), "Can Demand Elasticities Explain Sticky Credit Card
Rates", New England Economic Review, July/August, pp. 43-54, Federal Reserve
Bank of Boston, Massachusetts.
Tyler, K. and Stanley, E. (1999b), "UK bankcorporate relationships: large corporate
expectations of service", International Journal of Bank Marketing, Vol. 17 No. 4, pp.
158-70.
Wilson, C. 2002, "Corporate credit cards for small businesses: The new emerging
market?", Community Banker, vol. 11, no. 5, pp. 32-35.
Woodcock, N., Stone, M., and M.W. Starkey, State of the Nation I (2001)
Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), "The behavioral
consequences of service quality", Journal of Marketing, Vol. 60, April, pp. 31-46.
Mark 3014 Customer Management Report 2013 - 2014

17. Marking sheet
Mark 3014 Customer Management Report 2013 - 2014

18. Mark 3014 Customer Management Report 2013 - 2014
Name Ningfei Lei mark
Please also note any feedback comments on your report.
Please note the ticks in each row are an
indication only of your performance and should
not be used as a basis for justifying your mark
with the one given
Outstanding
80+
Excellent
70-79
Good
60-69
Satisfactory
50-59
Borderline
40-49
Fail
0-39
1) Introduction – explanation of
a) Context, (explain report is being
prepared for Newbank) and the
b) Outline the structure/content of the
report
2) customer management model
a) Brief Explanation of QCi or Payne model
b) Benefits of model
c) Benefits of being customer centric
3) Value Proposition
appropriate value propositions for
a) credit card customers and
b) SME businesses
c) VP mirror diagram aligned and text
adapted to Newbank
4) Creating increased value from the
Newbank customer base
How Newbank can create value from the
customer base for
a) credit card customers and
b) SME businesses in an ethical way
5) Adopting a “systems thinking” approach
a) Why Newbank should adopt a
“systems thinking” approach to
organising their business
b) how Newbank should adopt a
“systems thinking” approach to
organising their business
6) Working towards providing an outstanding
CX
a) ensure high customer retention rate for
appropriate customers and
b) attract more good ones for credit card
customers and SME businesses.
7) Developing a social media strategy using
either or both
a) Make appropriate use of social media
with particular emphasis on

19. MARK3014 Customer Management - MARKING GUIDE FEEDBACK &
MARK SHEET -2014
Abbreviations of most common occurring errors
General
TI- Template Incorrect
MDM- Model Diagram Missing
TMBI – too much background information
IRR – irrelevant discussion not focused on task,
CM – citation missing, i.e. no author name/date for supporting evidence
CDM - citation date missing, author name but no date
CE - Citation error, i.e. poor citation by either including author’s initials (or
first names) e.g or confusing author’s first name and surname Starkey, M.
(2012) or Starkey, Michael (2012) or Michael (2012). Correct citation would
be Starkey (2012).
T – Typographical or spelling errors
PG – poor grammar/sentence construction
NS - Text is nonsense and has clearly not been checked to make sure that it is
comprehensible.
SEM – theoretical supporting evidence missing to support the discussion
TD – too descriptive.
Tables and charts
FFS – Formatting font size too small/large
BFF – badly formatted figure or table
FTNM – Figure/table number missing
TM – chart or table title missing , eg should read ‘Figure 1 section level score
for PLC 1’ etc
PR –Poor resolution, copying and pasting of low resolution graphics instead
of redrawing.
Mark 3014 Customer Management Report 2013 - 2014