The main question is how a financial application must be specified to meet the customer's requirements in light of numerous variations of software and different providers of mobile devices. Furthermore, it should be discussed, how additional customer value can be created by such an application. Besides the complexity from a wide range of various mobile devices itself, solutions have to follow the principle of customer-centricity.
In order to clarify and demonstrate how a client process should be designed to meet the high demands of the mobile devices by the new group of customers, the change from a seller's market to a buyer's dominated market and the focus on the customer‟s need will be discussed.
Afterwards, the issues customer-centricity and customer processes, which are the main elements of a customer-oriented process, and why thinking and acting in customer-oriented process structures is of relevance are discussed.
Having theses to aspects in mind, an exemplary customer-oriented process will be described and visualized. This process has been designed under considering the target group‟s characteristic: flexibility, reachability, safety, self-actualization, and usability.
Table of Contents
1 Introduction
2 Challenges to the Banking Business
2.1 Customer's (basic) needs
2.2 Changes in global markets
3 Customer-centricity for Business Processes
3.1 Customer-centricity
3.2 Customer Buying Cycle & Customer Processes
3.3 The customer-centric business process
4 Customer Process mapped to a Mobile Device
5 Boundaries & Challenges
5.1 Opportunities
5.2 Boundaries, challenges and disadvantages
6 Conclusion
Research Objectives and Topics
The thesis examines how financial institutions can adapt their business processes to meet the needs of a younger, highly mobile customer segment (16–40 years) by leveraging mobile device technology to create a customer-centric banking experience.
- Transformation of banking from seller-dominated to customer-dominated markets.
- Application of the "Customer Buying Cycle" (CBC) to identify and fulfill customer needs.
- Integration of mobile devices as a strategic channel for personalized banking services.
- Analysis of security challenges, usability requirements, and the necessity of organizational culture shifts.
- Evaluation of the potential for increased customer loyalty and long-term profitability through mobile integration.
Excerpt from the Thesis
3.2 Customer Buying Cycle & Customer Processes
Many banks already focus on customers, they use CRM or other tools “guessing” their needs or trying to see the customer throughout lifetime profitability thinking when offering their products to him. Unlike, for example, the consumer industry, banks do not draw the added value of their services to the customer; customers are willing to pay more for goods when they recognize the added value, for image reason or just because they feel the vendor takes care about them. The mixture of partnership, trust and added value can be seen in customer processes. It is defined as a process a customer passes through to satisfy his needs.
Specifically, the Customer Buying Cycle (CBC) can be used to point out and understand the customer’s needs, expectations, and requirements (see figure 3). It describes a holistic view of the customer’s consumption cycle in a chronological flow. It consists of the four steps: research and information gathering, evaluation, acquisition or purchase, and after-sales. The CBC will be the basis for a customer process where in each step the expectation of the customer’s needs will be derived from. The customer is seen as the starting and the end point of the value chain to meet his desired outcome.
The customer process focuses during each phase on individual requirements of the customer and helps banks to find out which services and products are needed in serving the needs of their customers best and completely.
Summary of Chapters
1 Introduction: Introduces the shift toward mobile and wireless services among the 16-40 age demographic and defines the central research question regarding the creation of customer-centric financial applications.
2 Challenges to the Banking Business: Discusses how Maslow’s Hierarchy of Needs and shifting global market dynamics force banks to move from product-centric to customer-centric models.
3 Customer-centricity for Business Processes: Analyzes the concept of customer-centricity, the role of CRM, and the utility of the Customer Buying Cycle (CBC) in aligning banking processes with user expectations.
4 Customer Process mapped to a Mobile Device: Details the transition from theory to practice by mapping customer processes to mobile applications, highlighting core requirements like accessibility, security, and usability.
5 Boundaries & Challenges: Evaluates the opportunities for improved loyalty versus the significant challenges of security, technical complexity, and the necessity of creating homogeneous customer groups.
6 Conclusion: Summarizes the findings, emphasizing that while banks are in the early stages of mobile integration, a proactive, customer-oriented approach is essential for long-term competitiveness.
Keywords
Customer-centricity, Mobile Banking, Business Process Management, Customer Buying Cycle, Financial Industry, Digital Strategy, Customer Loyalty, User Experience, Mobile Devices, Process Modeling, Banking Innovation, CRM, Personalization, Banking Security, Customer Segmentation.
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores how financial institutions can redesign their business processes to become more customer-centric by utilizing mobile device applications as a primary channel for interaction.
What are the primary target groups mentioned?
The study specifically focuses on the 16-to-40-year-old demographic, characterizing them by their high demand for flexibility, adaptability, and constant internet connectivity.
What is the main objective of the thesis?
The main objective is to identify how banking applications can be tailored to meet customer requirements and generate added value, thereby moving away from generic product-oriented service models.
Which methodology is used to approach the problem?
The authors employ a conceptual approach, drawing on established models like Maslow’s Hierarchy of Needs, the Johari Window for interpersonal communication, and the Customer Buying Cycle (CBC) to structure the proposed banking processes.
What topics are covered in the main section of the paper?
The main section covers the challenges of the modern banking environment, the theoretical framework for customer-centricity, the practical mapping of processes to mobile devices, and the associated risks and opportunities.
Which keywords best characterize this work?
Key terms include Customer-centricity, Mobile Banking, Business Process Management, Customer Buying Cycle, and Financial Industry.
How does the "Customer Buying Cycle" contribute to the proposed model?
The CBC provides a chronological framework consisting of research, evaluation, purchase, and after-sales, which serves as the foundation for identifying exactly where a bank can offer added value to the customer.
Why is safety considered a primary challenge in this context?
Safety is critical because mobile banking processes involve sensitive financial data, and the study notes that for mobile applications to be accepted, they must overcome security concerns like fraud and Trojan attacks.
What is the significance of the "Johari Window" in the thesis?
The authors use the Johari Window to illustrate how banks can move information from the "Hidden" or "Blind" quadrants to the "Open" quadrant through better communication, thus building the trust necessary for long-term customer relationships.
What specific conclusion do the authors draw for financial institutions?
The authors conclude that while banks are currently in the early stages of mobile development, they should adopt a start-up mentality by integrating mobile applications into simple customer processes to ensure a long-term, satisfied relationship.
- Citar trabajo
- Christian Marx (Autor), Uwe Fischer (Autor), 2009, Customer Processes and their application to Mobile Devices, Múnich, GRIN Verlag, https://www.grin.com/document/151060
