Case Study on Customer Experience Management

CASE STUDY: Al Rajhi Bank

THE CHALLENGE: Managing growth while improving the customer experience

Al Rajhi Bank is the leading full-service Islamic Bank in Saudi Arabia. Due to the strong oil market and inflow of Saudi capital back to the country, the bank experienced enormous growth in a very short period of time. The bank capitalized on all of the new opportunities with aggressive sales and marketing activities and successfully acquired many new customers. These acquisition efforts earned the bank a major share of the retail segment with a remarkable 90% year-over-year growth in profits over the last two years. However, the sudden increase in the scale of operations coupled with the complexity of Islamic banking products began to impact the quality of the customer experience. The customers suffered delays in product delivery and reduced levels of sales support. A customer survey revealed a decline in customer loyalty signalling an increased risk that many customers would take their businesses elsewhere. Recognizing the threat of competition, the bank decided to implement an operational excellence initiative to transform the bank into a lean, performance-focused enterprise. The bank realized that they needed to shift their operating paradigm from a functional orientation to customer orientation. The goal was to become a hassle-free Islamic bank that provided a distinctive and enjoyable customer experience. The strategy included three phases: providing a consistent experience across channels, enhancing the front-end and back-end operations and achieving a higher degree of integration between its lines of business.

ANALYSIS

COMPANY BACKGROUND:

The Al-Rajhi Bank (known as the Al Rajhi Banking and Investment Corporation until a 2006 name change is the world's largest Islamic bank, and a major investor in Saudi Arabia's business world. It is one of the largest joint stock companies in the Kingdom, with a paid up capital of SR 6.75 billion...