Page 33 - Banking Finance JANUARY 2017

ARTICLE

Most banks through Internet banking are trying to change commitment it gives -clearly displays its commitment. It
their committed customers as partners. State Bank of India commits itself to serve you over a long period of time and
has taken the partnership role to a new height through its in the event of a casualty -it helps you in rehabilitating your
Freedom mobile banking advertisement - "Aab Huan Na family. The famous slogan of Life Insurance Corporation of
Aapka Bank Aapke Jeb Me". The State Bank Of India's fa- India -'Zindagi ke saath bhi, zindagi ke baad bhi; is the mani-
mous slogan " With you all the way ,Pure banking nothing festation of LIC of India's long term commitment.
else, The nation's bank on us" is a strong statement of fact
and not a mere slogan. The sustainability of competitive advantage is normally very
high: But it depends on many things- in particular how valu-
At a time when most banks were struggling with its ATMs able the customer is to the firm in terms of revenue gener-
in the wake of demonetization, State Bank of India clearly ated from him and her. It is difficult to deliver customized
exhibited why the whole nation bank on it. A health insur- service consistently. The customized services also come with
ance company offers tailor-made customized product for its a cost. The competitive advantage can be maintained if all
corporate clients keeping in mind the specific requirements important services across customer and supplier of services
of its clientele. The source of competitive advantage at the are synchronized properly.
partnership phase also changes from satisfaction plus trust
to satisfaction plus trust plus commitment. The relationship goal in partnership phase is to retain the
customer of course but also to enhance this relationship to
A firm today is committed to serve its customer in the form
a logical conclusion. Customers often like to stay in a rela-
of information sharing as and when required and even at tionship when they find that the company they deal with
times serving the idiosyncratic financial requirements of their
dish out products and services as per their changing needs
customers. The key to commitment depends on how well a
and wants. They also look to deal with a company that con-
firm is able to organize and use information about individual
tinues to offer array of products or services in the course of
customers -thereby enabling itself to deliver highly person- their entire life span. Therefore, for a firm it makes busi-
alized and customized offering.
ness sense in retaining profitable customers and building a
Most health insurance underwriters are today keen to know long term relationship with them.
the various factor that affect the health behaviour of its cus- References:-
tomers. They are trying to create a database that enable
1. Service Marketing - Integrating Customer Focus Across The
them to better serve the changing needs of their custom-
Firm -Valerie A Zeithaml, Mary Jo Bitner, Dwayne D Gremler
ers. The incorporation of telemedicine, retail or mobile
& Ajay Pandit -Fifth edition 2011 Tata McGraw Hill Educa-
healthcare facility in healthcare delivery mechanism is the
tion Private Limited -Ch -7 Building Customer Relationship
result of commitment on the part of health insurance com-
Service Marketing -
panies to bolster their long term relationships with their
2. People, Technology ,Strategy - Christopher Lovelock, Jochen
valued customers.
Wirtz & Jayanta Chatterjee - Sixth Edition 2010;Pearson /
The time horizon of this relationship is usually long because Prentice Hall -Ch-12-Managing Relationships and Building
it takes time to build this relationship. A Life insurance com- Loyalty
pany takes premium over a long period of time. But the 3. Customer experience in healthcare: The moment of truth-
PwC's Health Research Institute 2012; https://
www.pwc.com/mx/es/publicaciones/archivo/2012-09-cus-
tomer-experience-healthcare.pdf PWC
4. http://media.library.ku.edu.tr/reserve/resfall05_06/
MKTG%20450%20A.Kok/
Customer%20Portfolio%20Management.pdf-Customer
Portfolio Management: Toward a Dynamic Theory of Ex-
change Relationships-Michael D. Johnson & Fred Selnes;
Journal of Marketing ;Vol. 68 (April 2004), 1-17

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