SlideShare une entreprise Scribd logo
1  sur  18
Télécharger pour lire hors ligne
Customer
Relationship
Management at
Manohar Reddy.E
16-093
What is
Capital One Financial Corporation is a bank
holding company specializing in credit cards, home loans, auto loans,
banking and savings products headquartered in McLean, Virginia.
The Company was founded in the year 1988 by
Richard Fairbank and Nigel Morris
History
Late 1980s, Founders had a vision of creating an information-based
company rather than a financial services company when they worked
in the consulting business.
1988, Signet Bank brought Fairbank and Morris concept and the
concept was “Credit cards are not banking, they are information It’s all
about collecting information on millions of people that you’ve never
met, and on the basis of that information, making a series of critical
decisions about lending money to them and hoping they back you.”
Signet Bank used information based strategy
• 1994, Signet’s executive management made decision to float the credit
card business separately where Capital One Financial Corporation
was born in November 1994, with Richard Fairbank as Chairman and
CEO, and Nigel Morris as President and COO.
• 2000, The stock price of the company has increased by 1,000% and
the company has grown at an average annual rate of 40%, excluding
mergers and acquisitions.
• 2001, The company handled more than US$45 billion in loans and
43.8 million customers worldwide, serviced by more than 20,000
employees
What is Credit card?
A credit card is a payment card issued to users (cardholders) to enable
the cardholder to pay a merchant for goods and services, based on the
cardholder's promise to the card issuer to pay them for the amounts so
paid plus other agreed charges.
Main forms of income:
 Interchange
 Interest charge
 Annual card fees.
 Other fees
Customers
Transactors
Revolvers
Credit Card Market (UK)
1970’s and
1980’s
Market was dominated by two card brands
Barclaycard, Access
1996
MasterCard bought out the Access brand and compelled
UK members to use the MasterCard brand itself
1990’s
Major British banks dominated the market in the
early 1990s, including Barclays, Lloyds, The Midland,
NatWest and The Royal Bank of Scotland
MID -
1990’s
New entrants from the US. Banks such as Capital
One, Morgan Stanley Dean Witter and MBNA,
Current Market Situation (2002)
Market Share – All
The major share is held by Barclaycard (24%) followed by Lloyds TSB,
NatWest, HSBC. Where Capital One held with 7% which ranks 5th.
Market Share – New
The major share is held by Capital One (14%) followed by Barclaycard,
Lloyds TSB, NatWest, HSBC.
Standard Rate:
The Average rate followed by bank is 17.9% where Capital One offers
12.9% which is lowest.
Balance Transfer Rate:
Capital One offers 6.9% rate which is highest compare to other banks.
Market Size:
There is +96.8% change in the issue of new Credit cards in
the market.
Advertising and Promotion:
 1998 - £53 million advertising expenditure.
 2000 - £70 million where due to competition increase.
 2001 - £52 million (-23%), due to the cutting back of spending's by big Advertisers.
Capital One did not spend money on campaign’s but concentrated its marketing
expenditure on building up a customer base.
Business Model
• The business model of Capital One is founded on the simple, that each
customer requires a different product and service benefits from a credit
card provider.
• Each customer carries a specific and unique credit risk and potential
revenue profile, based mainly on their previous credit history it can
analyzed.
Information Based Strategy
• In order to understand the customers, the company uses information
technology to accumulate and manage large amounts of data on its
customers.
• Capital One’s Marketing and Analysis teams develop ideas, design
products and select segments based on the Test and learn strategy
(where it carries out scientific tests to identify differences in potential
customer behavior. )
• All test results are then analyzed and integrated into databases and
can be referenced later to initiate further ideas development and
product design.
Departments
 Marketing and Analysis (M&A)
 Operations
 IT
 Human Resources.
Marketing and Analysis (M&A)
Account acquisition – the activity of attracting customers to Capital
One.
Account management – managing the customer relationship in a
profitable manner if the applicant become as a customer.
Operations: There are over 1,000 people working in Capital One’s call-
center, which handles more than 10,000 calls per day on an incoming
basis
Operations
 Operations Processing
Customer Relations
Sales
 Inbound
 Outbound
 Retention
 New business
Collections
 Payment Assistance
 Recoveries
 Fraud
Information Technology (IT)
• The IT department offers a full-service capability to the business
(Operations and M&A), covering the spectrum of products and
processes through their genesis and complete life cycle.
• IT also provides the tools through which IBS is enabled – including the
query tools, the batch updates, and the summary and transactional
data.
Human Resources
Hiring/Training
 Evaluation
 Compensation
Future Challenges
Building a Deeper Understanding of Customer Needs
Managing Costs
Co-ordinating Channels
THANK YOU

Contenu connexe

Tendances

allentown materials case study
allentown materials case studyallentown materials case study
allentown materials case studyTushar Mittal
 
Walmart takes on Amazon
Walmart takes on AmazonWalmart takes on Amazon
Walmart takes on AmazonAditya Sandala
 
Case Study Analysis: Cineplex Entertainment: The Loyalty Program
Case Study Analysis: Cineplex Entertainment: The Loyalty ProgramCase Study Analysis: Cineplex Entertainment: The Loyalty Program
Case Study Analysis: Cineplex Entertainment: The Loyalty ProgramAkash Patil
 
The New York Times Paywall Case Study
The New York Times Paywall Case StudyThe New York Times Paywall Case Study
The New York Times Paywall Case StudyTANUSHREE BOSE
 
Case Study on Oscar Mayer
Case Study on Oscar MayerCase Study on Oscar Mayer
Case Study on Oscar MayerRohan Bharaj
 
BMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USABMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USAAbhishek Kapoor
 
The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireThe Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireEric Moon
 
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES sadia butt
 
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Siddharth Barjatya
 
Case Analysis - Making stickk stick
Case Analysis - Making stickk stickCase Analysis - Making stickk stick
Case Analysis - Making stickk stickDanh Đỗ
 
HubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case studyHubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case studyRonak Shah
 
Dove: evolution of a brand
Dove: evolution of a brand Dove: evolution of a brand
Dove: evolution of a brand Sameer Mathur
 
Edited calyx and corolla case ppt
Edited calyx and corolla case pptEdited calyx and corolla case ppt
Edited calyx and corolla case pptnicerohit555
 
Rosewood hotels & resorts HBS case study
Rosewood hotels & resorts HBS case studyRosewood hotels & resorts HBS case study
Rosewood hotels & resorts HBS case studyraman109
 
Brand Differentiation through Customer Relationship Management - HBR Case review
Brand Differentiation through Customer Relationship Management - HBR Case reviewBrand Differentiation through Customer Relationship Management - HBR Case review
Brand Differentiation through Customer Relationship Management - HBR Case reviewAngga Kusumanegara
 
The Birth of the Swatch - HBR Case Study
The Birth of the Swatch - HBR Case Study The Birth of the Swatch - HBR Case Study
The Birth of the Swatch - HBR Case Study Raffy Karamanian
 

Tendances (20)

allentown materials case study
allentown materials case studyallentown materials case study
allentown materials case study
 
Walmart takes on Amazon
Walmart takes on AmazonWalmart takes on Amazon
Walmart takes on Amazon
 
Peak Stealing Technologies
Peak Stealing TechnologiesPeak Stealing Technologies
Peak Stealing Technologies
 
Case Study Analysis: Cineplex Entertainment: The Loyalty Program
Case Study Analysis: Cineplex Entertainment: The Loyalty ProgramCase Study Analysis: Cineplex Entertainment: The Loyalty Program
Case Study Analysis: Cineplex Entertainment: The Loyalty Program
 
The New York Times Paywall Case Study
The New York Times Paywall Case StudyThe New York Times Paywall Case Study
The New York Times Paywall Case Study
 
Case Study on Oscar Mayer
Case Study on Oscar MayerCase Study on Oscar Mayer
Case Study on Oscar Mayer
 
BMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USABMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USA
 
The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire
The Walt Disney Company and Pixar Inc.: To Acquire or Not to AcquireThe Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire
The Walt Disney Company and Pixar Inc.: To Acquire or Not to Acquire
 
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
Heinz Case Study: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES
 
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
Reliance Baking Soda: Optimizing Promotional Spending (HBR Brief Case)
 
Case Analysis - Making stickk stick
Case Analysis - Making stickk stickCase Analysis - Making stickk stick
Case Analysis - Making stickk stick
 
HubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case studyHubSpot - Inbound marketing and web 2.0 case study
HubSpot - Inbound marketing and web 2.0 case study
 
Birch paper company
Birch paper companyBirch paper company
Birch paper company
 
Dove: evolution of a brand
Dove: evolution of a brand Dove: evolution of a brand
Dove: evolution of a brand
 
Edited calyx and corolla case ppt
Edited calyx and corolla case pptEdited calyx and corolla case ppt
Edited calyx and corolla case ppt
 
Rosewood hotels & resorts HBS case study
Rosewood hotels & resorts HBS case studyRosewood hotels & resorts HBS case study
Rosewood hotels & resorts HBS case study
 
Brand Differentiation through Customer Relationship Management - HBR Case review
Brand Differentiation through Customer Relationship Management - HBR Case reviewBrand Differentiation through Customer Relationship Management - HBR Case review
Brand Differentiation through Customer Relationship Management - HBR Case review
 
The Birth of the Swatch - HBR Case Study
The Birth of the Swatch - HBR Case Study The Birth of the Swatch - HBR Case Study
The Birth of the Swatch - HBR Case Study
 
Nike Cost of Capital
Nike Cost of Capital Nike Cost of Capital
Nike Cost of Capital
 
Sale soft inc
Sale soft incSale soft inc
Sale soft inc
 

Similaire à Customer Relationship Management at Capital one

Leveraging Data to Increase Efficiency and Create Alternative Revenue Streams
Leveraging Data to Increase Efficiency and Create Alternative Revenue StreamsLeveraging Data to Increase Efficiency and Create Alternative Revenue Streams
Leveraging Data to Increase Efficiency and Create Alternative Revenue StreamsBiz2Credit
 
Risky Finance investordeck v4
Risky Finance investordeck v4Risky Finance investordeck v4
Risky Finance investordeck v4Nicholas Dunbar
 
Duncan Consulting Overview
Duncan Consulting OverviewDuncan Consulting Overview
Duncan Consulting Overviewkristyduncan
 
Marketing plan bank islam malaysia
Marketing plan bank islam malaysiaMarketing plan bank islam malaysia
Marketing plan bank islam malaysiaAmine Med
 
Canadian Prepaid Ecosystem 2020
Canadian Prepaid Ecosystem 2020Canadian Prepaid Ecosystem 2020
Canadian Prepaid Ecosystem 2020jennifertramontana
 
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...mercatoradvisory
 
Fis payments summary 2
Fis payments summary 2Fis payments summary 2
Fis payments summary 2NigelReavley
 
Cards business presentation
Cards business presentationCards business presentation
Cards business presentationKhaja Wasiullah
 
Marketing transformation at Mastercard
Marketing transformation at MastercardMarketing transformation at Mastercard
Marketing transformation at MastercardSagar Bhatt
 
Can Financial Institutions be the next Digital Masters? Capgemini says YES
Can Financial Institutions be the next Digital Masters? Capgemini says YESCan Financial Institutions be the next Digital Masters? Capgemini says YES
Can Financial Institutions be the next Digital Masters? Capgemini says YESCapgemini
 
Marketing Strategy - Axis Bank
Marketing Strategy - Axis BankMarketing Strategy - Axis Bank
Marketing Strategy - Axis Bankpradipmondal
 
Standard chartered bank credit card
Standard chartered bank credit cardStandard chartered bank credit card
Standard chartered bank credit cardAkashNirmal9
 
Getting Started - LMS Agent Program
Getting Started - LMS Agent ProgramGetting Started - LMS Agent Program
Getting Started - LMS Agent Programpwangerin
 

Similaire à Customer Relationship Management at Capital one (20)

Leveraging Data to Increase Efficiency and Create Alternative Revenue Streams
Leveraging Data to Increase Efficiency and Create Alternative Revenue StreamsLeveraging Data to Increase Efficiency and Create Alternative Revenue Streams
Leveraging Data to Increase Efficiency and Create Alternative Revenue Streams
 
Risky Finance investordeck v4
Risky Finance investordeck v4Risky Finance investordeck v4
Risky Finance investordeck v4
 
Duncan Consulting Overview
Duncan Consulting OverviewDuncan Consulting Overview
Duncan Consulting Overview
 
Cppo & fgs slide share
Cppo & fgs slide shareCppo & fgs slide share
Cppo & fgs slide share
 
Cppo fgs slide share
Cppo  fgs slide shareCppo  fgs slide share
Cppo fgs slide share
 
Marketing plan bank islam malaysia
Marketing plan bank islam malaysiaMarketing plan bank islam malaysia
Marketing plan bank islam malaysia
 
Citi bank
Citi bankCiti bank
Citi bank
 
Canadian Prepaid Ecosystem 2020
Canadian Prepaid Ecosystem 2020Canadian Prepaid Ecosystem 2020
Canadian Prepaid Ecosystem 2020
 
Digital cracks in banking--Sid Nandi
Digital cracks in banking--Sid NandiDigital cracks in banking--Sid Nandi
Digital cracks in banking--Sid Nandi
 
Who is Wizzit
Who is Wizzit Who is Wizzit
Who is Wizzit
 
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...
Supplier Enablement of Cards in B2B E-Payments Requires Persistence, Data, an...
 
Fis payments summary 2
Fis payments summary 2Fis payments summary 2
Fis payments summary 2
 
Cards business presentation
Cards business presentationCards business presentation
Cards business presentation
 
Marketing transformation at Mastercard
Marketing transformation at MastercardMarketing transformation at Mastercard
Marketing transformation at Mastercard
 
Cards global market report
Cards global market reportCards global market report
Cards global market report
 
Can Financial Institutions be the next Digital Masters? Capgemini says YES
Can Financial Institutions be the next Digital Masters? Capgemini says YESCan Financial Institutions be the next Digital Masters? Capgemini says YES
Can Financial Institutions be the next Digital Masters? Capgemini says YES
 
Marketing Strategy - Axis Bank
Marketing Strategy - Axis BankMarketing Strategy - Axis Bank
Marketing Strategy - Axis Bank
 
Standard chartered bank credit card
Standard chartered bank credit cardStandard chartered bank credit card
Standard chartered bank credit card
 
Getting Started - LMS Agent Program
Getting Started - LMS Agent ProgramGetting Started - LMS Agent Program
Getting Started - LMS Agent Program
 
Ib citibank
Ib citibankIb citibank
Ib citibank
 

Dernier

Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesVWO
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxivanrazine1
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldD Cloud Solutions
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMNazal Digital
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfUttara University
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxWill Haire
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Nedko Nedkov
 
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...Sophie Logan
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxGregory Edwards
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfEastern Online-iSURVEY
 
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch Deck
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch DeckPodvertise.fm - Podcast Advertising Marketplace - Startup Pitch Deck
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch DeckNedko Nedkov
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarSEO Optimizers
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfSocial Samosa
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneHerd
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management caseAnkit Sarkar
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfVWO
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedMumbai Pixels
 
The Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadThe Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadFabio Bin
 
Run more experiments with fewer resources
Run more experiments with fewer resourcesRun more experiments with fewer resources
Run more experiments with fewer resourcesVWO
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity
 

Dernier (20)

Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing Pages
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern World
 
Digital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEMDigital Marketing Services like SEO, SMM, SEM
Digital Marketing Services like SEO, SMM, SEM
 
Fashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdfFashion-Marketing-1- Assaginment mid.pdf
Fashion-Marketing-1- Assaginment mid.pdf
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptx
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024
 
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
 
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch Deck
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch DeckPodvertise.fm - Podcast Advertising Marketplace - Startup Pitch Deck
Podvertise.fm - Podcast Advertising Marketplace - Startup Pitch Deck
 
Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads Webinar
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
 
Imposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not AloneImposter Syndrome in Marketing & Why You're Not Alone
Imposter Syndrome in Marketing & Why You're Not Alone
 
Voltas turnaround strategy management case
Voltas turnaround strategy management caseVoltas turnaround strategy management case
Voltas turnaround strategy management case
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdf
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to Succeed
 
The Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadThe Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoad
 
Run more experiments with fewer resources
Run more experiments with fewer resourcesRun more experiments with fewer resources
Run more experiments with fewer resources
 
Digital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services PreviewDigital Gravity - Full-Scale SEO Services Preview
Digital Gravity - Full-Scale SEO Services Preview
 

Customer Relationship Management at Capital one

  • 2. What is Capital One Financial Corporation is a bank holding company specializing in credit cards, home loans, auto loans, banking and savings products headquartered in McLean, Virginia. The Company was founded in the year 1988 by Richard Fairbank and Nigel Morris
  • 3. History Late 1980s, Founders had a vision of creating an information-based company rather than a financial services company when they worked in the consulting business. 1988, Signet Bank brought Fairbank and Morris concept and the concept was “Credit cards are not banking, they are information It’s all about collecting information on millions of people that you’ve never met, and on the basis of that information, making a series of critical decisions about lending money to them and hoping they back you.” Signet Bank used information based strategy
  • 4. • 1994, Signet’s executive management made decision to float the credit card business separately where Capital One Financial Corporation was born in November 1994, with Richard Fairbank as Chairman and CEO, and Nigel Morris as President and COO. • 2000, The stock price of the company has increased by 1,000% and the company has grown at an average annual rate of 40%, excluding mergers and acquisitions. • 2001, The company handled more than US$45 billion in loans and 43.8 million customers worldwide, serviced by more than 20,000 employees
  • 5. What is Credit card? A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay them for the amounts so paid plus other agreed charges.
  • 6. Main forms of income:  Interchange  Interest charge  Annual card fees.  Other fees Customers Transactors Revolvers
  • 7. Credit Card Market (UK) 1970’s and 1980’s Market was dominated by two card brands Barclaycard, Access 1996 MasterCard bought out the Access brand and compelled UK members to use the MasterCard brand itself 1990’s Major British banks dominated the market in the early 1990s, including Barclays, Lloyds, The Midland, NatWest and The Royal Bank of Scotland MID - 1990’s New entrants from the US. Banks such as Capital One, Morgan Stanley Dean Witter and MBNA,
  • 8. Current Market Situation (2002) Market Share – All The major share is held by Barclaycard (24%) followed by Lloyds TSB, NatWest, HSBC. Where Capital One held with 7% which ranks 5th. Market Share – New The major share is held by Capital One (14%) followed by Barclaycard, Lloyds TSB, NatWest, HSBC. Standard Rate: The Average rate followed by bank is 17.9% where Capital One offers 12.9% which is lowest.
  • 9. Balance Transfer Rate: Capital One offers 6.9% rate which is highest compare to other banks. Market Size: There is +96.8% change in the issue of new Credit cards in the market. Advertising and Promotion:  1998 - £53 million advertising expenditure.  2000 - £70 million where due to competition increase.  2001 - £52 million (-23%), due to the cutting back of spending's by big Advertisers. Capital One did not spend money on campaign’s but concentrated its marketing expenditure on building up a customer base.
  • 10. Business Model • The business model of Capital One is founded on the simple, that each customer requires a different product and service benefits from a credit card provider. • Each customer carries a specific and unique credit risk and potential revenue profile, based mainly on their previous credit history it can analyzed.
  • 11. Information Based Strategy • In order to understand the customers, the company uses information technology to accumulate and manage large amounts of data on its customers. • Capital One’s Marketing and Analysis teams develop ideas, design products and select segments based on the Test and learn strategy (where it carries out scientific tests to identify differences in potential customer behavior. ) • All test results are then analyzed and integrated into databases and can be referenced later to initiate further ideas development and product design.
  • 12. Departments  Marketing and Analysis (M&A)  Operations  IT  Human Resources.
  • 13. Marketing and Analysis (M&A) Account acquisition – the activity of attracting customers to Capital One. Account management – managing the customer relationship in a profitable manner if the applicant become as a customer. Operations: There are over 1,000 people working in Capital One’s call- center, which handles more than 10,000 calls per day on an incoming basis
  • 14. Operations  Operations Processing Customer Relations Sales  Inbound  Outbound  Retention  New business Collections  Payment Assistance  Recoveries  Fraud
  • 15. Information Technology (IT) • The IT department offers a full-service capability to the business (Operations and M&A), covering the spectrum of products and processes through their genesis and complete life cycle. • IT also provides the tools through which IBS is enabled – including the query tools, the batch updates, and the summary and transactional data.
  • 17. Future Challenges Building a Deeper Understanding of Customer Needs Managing Costs Co-ordinating Channels