Customer Profitability and Customer Relationship Management at Rbc Financial Group”

As the main problem is that the company did not understand needs of clients very good and there were very strict rules about the clientele management, which caused a lot of difficulties about even the smallest exceptions, here are our suggested alternatives to solve this problem.

1. Our first alternative for the issue of exception handling is to make personal assessment in case of exceptions, as they occur rarely. Frontline employees would have deeper relationships with the clients, which provide more information to them. By providing information, frontline employees will develop a greater understanding of their clients, and will be able to act on this information to strengthen relationships and make more informed and strategic business decisions. This alternative would make frontline employees to know everything about their customers’ needs and solely focus on them.

2. The second alternative that helps to solve the problem of how managers should charge exceptional clients, either charge them for individual services, or charge them a transaction fee is: the pricing of fees should depend on the volume of transactions. New customer’s profile should be evaluated and tried to put it into already existing classification system. The information about customer’s preferences should be used to design packages of services:

- Low volume customers should be given a product on usage fee basis to at least cover the expenses.

- Medium volume customers should be suggested to pay one time flat charges calculated based on total costs in providing product and services to all such medium volume customers.

- The high volume customers get a premium but flat one time charges, which usually are higher than what medium level customers pay.

Using this alternative would help to understand the needs, preferences and potential of clients, which would help employees to generalize customers due to the segment information that is provided. This alternative would make frontline...