Customer Profitability And Customer Relationship Management At RBC Financial Group

Customer Profitability and Customer Relationship Management at RBC Financial Group

Case Assignment

The first page of the case discusses Richard McLaughlin's challenge to interpret the RBC customer profitability data and define an actionable strategy for managing the various market segments. Following are representative data for RBC Financial Group's three major customer segments; Key, Growth, and Prime, described in the case. The first plot is customer lifetime value (CLTV) calculated over 5 years for different percentiles of customers. The second plot is customer value calculated just for the next one year for different percentiles of customers: This is the current customer profitability.

The above calculations have been performed using the CLTV method described in the case. Your team assignment is to analyze these data, and the information given in the case, to balance CLTV and current profitability. You should make strategic and tactical recommendations for how to manage these three customer segments.

Specific questions to consider: (max 2 page write up to be printed and submitted, one per group)

* What should RBC's strategy be for managing each market segment?

* What should RBC do about customers who are unprofitable?

* Specifically, what can RBC do about negative profitability customers that use retail branches and ABM machines for their bill payments?

* What high level tactical marketing activities, such as grow, maintain, retain etc., are

...