Strategies adopted by local banks to attract new customers
and retain existing customers: a case study on Handelsbanken
Abstract: Handelsbanken (HB) is one of the four largest banks in the Nordic countries
and branch office operations are organized into eleven regional banks, six
in Sweden one each in Norway, Finland, Denmark and two in Britain. HB is
known to have a strong position in the Swedish market.
A study was conducted to investigate how the local branch of HB in Luleå,
market itself to meet banking needs of the young people between 13-18 years
and how did they try to affect the decisions to retain their existing bank
by not switching to another bank.
The methodology adopted in this research started with preparation of a set
of questionnaire followed by a verbal interview of a bank manager and later
on all the answers received were compiled up for analysis and to draw
conclusions from them. The research analysis has shown that HB does not
segment their customers and do not possess any aim for their marketing. It
does nothave any specific marketing strategy for the younger customers in
the age of 13-18. HB deals equally with all customers by fulfilling all
their needs and maintaining long-term relationship. HB also believes
their satisfied customers are their marketers, and they turn out to attract
new customers. HB also uses their existing customers to get hold of their
children’s to convince them to be their customer. HB believes its strong
brand name and its position in the market, helps them when attempting to
attract new customers. HB also thinks their web page is well defined to
attract new customers as it has provided all the necessary information’s
required to attract new customers as well as protect existing customers from
switching over to other banks. HB emphasizes more on the quality control and
development of the banking services to maintain long term relationship with
their existing customers, who are in fact their real time marketers.
HB also organizes regular training programs to update the knowledge of their
banking services, to enhance their customer services and maintain a higher
satisfaction level of the customers.
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