Professional Documents
Culture Documents
576 e 83 e 1 B 6 D 87 F 28318 B 4 Ba 1
576 e 83 e 1 B 6 D 87 F 28318 B 4 Ba 1
576 e 83 e 1 B 6 D 87 F 28318 B 4 Ba 1
Continue.. :
Continue.. 1980- The US credit card market was characterized by the fact that the financial institutions were
offering very similar products across the whole spectrum of their customer bases. Charging a standard 19.8%
interest rate and a US$20 annual fee. 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 Note:- The market
lacked a customisation of offers. The prevailing story was very much ‘ONE SIZE FITS ALL’
Business Model :
Business Model Business model of Capital One is founded on the simple, premise that each customer requires a
different product and service from its credit card provider. Each customer carries a specific and unique credit risk.
The better the company can understand and assess a customer’s specific risk, the better it can manage it. Risk is
a crucial factor in the credit card business. According to Ian Cornelius “We’re in a risk-driven business where one
bad debtor can easily wipe out the benefits from 20 average customers- thus it’s vital to manage them carefully. It
is one of our competitive advantages to understand and manage these different levels of risk.
Slide 11:
Another important aspect of Capital One’s strategy is the way it uses customer profitability analysis. Profitability is
calculated on an individual basis to improve the product offer to each customer. The element that differentiate
Capital One’s operations department from others is its IT infrastructure. IT is used to route calls and provide
necessary information to best handle specific calls. The system are updated directly by the call center associates.
Once the call is completed, associate enter information in an encoded form into system which will be available for
the next contact with the customer. The operations department is divided in four main areas: Operation
Processing:- Handle all back-office operations. Keying in credit card applications. Scanning all incoming
corresponding into a document management system. Managing vendors such as card embossers & statement
printers and payment from customers.
Slide 12:
Contd… Customer Relations Handles incoming calls. Associates use the sales system “SALSA” when attempting
to cross-sell. This allows them to identify suitable products to the customers who is calling and to avoid offering
the same products twice. Customer service associates, as well as sales associates work to an incentive scheme
that encourages sales and quality service. Averaging handling time of the call. Sales point per contact Quality A
review of their performance is received weekly. Feed back is given by the senior management and awards are
given to best performing teams or individuals and their pictures are displayed on internal notice boards or appear
in in-house publications.
Slide 13:
Sales:- Divided into four units. Inbound Outbound Retention New Business Capital One’s cross-selling system
determines the likelihood of customers to buy certain products based on the projected NPV of a product to a
customer, and suggest different products to different customers
Slide 14:
Sales system (SALSA) enables targeting cross-sell offers to specific customers interested in particular products.
Uses accumulated data on customers to suggest how to react to specific customer requests. Collections:- This
department deals with customers who have fallen behind with their payments. The department is split into three
main areas: Payment Assistance: Associates work with customers who can able to pay ,put their names in
contact with a recruiting agency or if the customer is ill ,payment may be temporarily suspended.Offered revised
terms, enabling them to make smaller, regular payments. Recoveries: Look for those customers whose debt has
been charged off and whose accounts are no longer open. Fraud: The team has two fundamental tasks: to help
customers who have been victims of fraud and to prevent fraud itself. Cont’d…
Slide 15:
The team closes down the old account, writes off any fraudulent charges and transfer genuine transactions into a
new account. Customers need a higher level of support. The fraud team is trained well to treat each case with
sensitivity. A wide range of systems is in place to help prevent fraud, including real time transaction models and
account behavior pattern systems. The fraud customer service team call customers to let them know about fraud.
Yet another selling point fro Capital One from CRM perspective. Work together when new product introduced.
M&A design the product, develop marketing material and follow up customer responses, operations collect
regular feedback from customers and make improvement suggestions. To review the risk perspective of present
as well as future strategies enabled through IT. Co-operation between M&A and operations
INFORMATION TECHNOLOGY :
INFORMATION TECHNOLOGY IT interacts with the company in the foloowing domains:- Prospect Pool and
Solication Management. Account Acquisition. Account servicing and call-centre technologies. Core systems.
HUMAN RESOURCES :
HUMAN RESOURCES ASSOCIATES TRAINING Hiring & Training Evaluation Compensation COMPANY
CULTURE Housing Culture of Involvement Continuous Improvement
FUTURE CHALLENGES :
FUTURE CHALLENGES Building a deeper Understanding of Customer Needs Managing Costs Co-ordinating
Channels
Customer Complaints :
Customer Complaints I have been trying to close my account with Capital One with no success. I have a 500.00
credt limit with a bal of 459.00 and was told that they will close it after I pay it off. This is outrageous. This is the
second time I tried to close my account. Is this legal? Phyllis of Portsmouth, VA Nov. 12, 2010