RBC Financial has adopted good client service as a new priority.
Speaking at Scotia Capital’s financial services conference on Tuesday, RBC chief executive Gordon Nixon said the bank is now aiming at improving the client experience as a method to improve customer satisfaction, client retention, and market share.
Along with the new priority is a new vision for the bank’s employees, “Always earning the right to be our clients’ first choice.”
Client retention leads to revenue growth and improved profitability with key clients, Nixon said, noting that 20% of personal clients generate 90% of personal client profits.
Among its initiatives to improve service are: segmenting service based on clients’ value; improved problem resolution; faster credit turnaround; and consistent service across platforms.
Along with service improvements, RBC is also trying to develop products that please clients. Nixon noted a new product targeted at snowbirds that is being pushed through the brokerage reps, financial planners and insurance reps.
The firm also aims to address client complaints about the cost and difficulty of dealing with RBC when in the U.S. for the winter. It expects to sell $20 million worth of the product in 2004.
Improving internal referrals has also been a priority. RBC is aiming to do it with incentives, among other things. Nixon reported that referrals are up 35% year over year through the first nine months of 2003. It estimates that it captured $2 billion in transactions from competitors thanks to referrals.