Customer account relationships and e-retail banking usage 1
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Don Sciglimpaglia* is a professor of marketing at San Diego State University and co-director of the Business Consulting Programme. He teaches undergraduate and graduate courses in the areas of marketing research, marketing planning, marketing management, internet marketing, and business consulting. He received his PhD from the University of Colorado in Marketing, Management Science and Social Psychology. Professor Sciglimpaglia has published nearly one hundred articles and papers including articles in the Journal of Marketing, Journal of Consumer Research, Journal of the Academy of Marketing Science, Current Issues and Research in Advertising, Journal of Advertising, Industrial Marketing Management, Journal of EuroMarketing, Journal of Marketing Education, Journal of Small Business Strategy, Journal of Small Enterprise Research, and E-Business Review.
David Ely is a professor of finance at the San Diego State University and teaches courses in financial institutions and business economics. His research centres on the regulation and management of financial institutions, as well as financial markets. Current research focuses on the impact of deregulation on the operations of financial services companies and local economies, small business lending by commercial banks and by credit unions, and the efficiency of credit unions. His PhD is in Economics from The Ohio State University. His research has been published in journals that include the Journal of Financial Services Research, Quarterly Review of Economics and Finance, Review of Financial Economics, International Finance, and Journal of International Money and Finance.
Abstract Financial institutions are actively developing new electronic banking products for their retail customers. To date, the market leaders have drawn a disproportionably higher share of e-retail banking customers. In response, smaller institutions have become quite active in exploring ways to participate profitably in online banking. A major influence is from a customer relationship management (CRM) perspective, where institutions try to limit the outflow of current customers and direct high-value customers to potential products from a multi-product service offering array. These efforts can succeed only if retail bank marketers focus the promotion of the new products and services that can utilise this channel toward those customers who are most likely to find them attractive. The first aim of this study was to examine the role that online and electronic banking play in defining the customer’s primary financial relationship. The analysis of 701 retail customers of a financial institution presented in this study suggests that banks and other institutions are highly vulnerable to loss of customers to rivals with extensive online services. A second aim was to examine to what extent information on banking relationships is able to extend CRM analysis beyond that offered by typical demographic and income data. Current customer account relationships are found to be highly predictive of use of electronic services use
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