Our text describes a best-cost provider strategy as a strategy representing an attractive combination of price, features, quality, service, and other appealing attributes.
This tactic best describes US Bank’s competitive strategy - US Bank attempts to provide customers with more value for the money. One of the main ways in which US Bank attempts to provide increased value is through superior customer service, incorporated in everything from our core values, detailed in an earlier post, to our five quality customer service steps. In every teller class I teach, I always emphasize how people can get the same basic banking products from a variety of financial institutions, but what differentiates US Bank from competitors is them, the employee, and the service they provide our customers.
The text also states “the target market for best-cost provider is value-conscious buyers – buyers who are looking for appealing extras at an appealing low price.”
US Bank offers appealing extras like internet banking, mobile banking, and internet bill pay at no additional costs. US Bank caters to an expanding Hispanic market by offering bi-lingual brochures, disclosures, and often, bi-lingual employees. Other extras include cash back on certain debit and credit card purchases, discounted loan rates and increased earnings rates, based on a customer’s total relationship with the bank.
The company’s culture is not completely focused on price and price alone. Granted, price is a consideration, but it is not the only consideration, nor would I want it to be, when dealing with my current financial status or financial future.
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Do you think that bank customers are loyal to the bank they do business with?
ReplyDeleteI think price is a consideration to some extent, but I also think that the relationship the customer has with people at the bank is what makes them loyal customers.
This is one area I belive the larger banks have suffered. So, I think that any bank that can build a good relationship with their customers will have the best competitive strategy.
Your right, this has been a big challenge through the various mergers. That solid customer relationship is something we continuously strive to strengthen. It has improved greatly since (1) the mergers have stopped - not any since 2003 and (2) our being proven so financially stable in this economic crisis.
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