The Study On The Countermeasure Of Promoting Customers' Loyalty Toward Hankou Bank

With the constant improvement and perfection of the financial market system in China,non-banking financial institutions of insurance,security,trust and Internet finance industries develops rapidly and have occupied the banks' established market,which makes the traditional banking face a bigger challenge.In the meantime,foreign banks,thanks to the all-round opening of our country's financial market,flooded in one after another and further squeezed the market share of our country's banking.In addition,resulting from the relative saturation of traditional industries,the fall of GDP growth rate and the recession of the entity economy,the national economic structure is in the stage of transforming,which leads to the further slowdown of the overall profit increase rate of banking.As an important part of banking system,city commercial banks are also faced with severe competition.As for Hankou Bank,the largest city commercial bank in Hubei Province,it on one hand faces an unprecedented historic opportunity brought by the national strategy of “the rise of central China”,but it also confronts fierce competition from security,trust,insurance,internet finance and other banks on the other hand.Since the bank brought in Legend Holdings Ltd.as the first majority shareholder in 2009,its net profit has increased quickly in consecutive years.However,with the market competition intensifying,Hankou Bank also comes to a plight of continuous decrease of profit.Then,it's a focal issue for the bank to retain the current clients and broaden the market share gradually in competition.As far as commercial banks are concerned,clients are the most important production resource because superior clients will bring stable profit to them.So it is significant for commercial banks to unearth the value of clients and maintain client relation.Besides,stable and superior clients can also bring about more potential clients.Therefore,to improve the customers' loyalty effectively can not only enhance banks' profitability,but also expand banks' market share.According to literature,it is widely believed in the academic circle that the evaluation criteria of customers' loyalty include behavior indicators and attitude indicators.The behavior indicators involve purchase time,purchase fr equency and so on.The attitude indicators comprise whether the clients can resist the temptation from competitors in the business and recommend to others proactively.Based on this theory,the paper holds that a loyal client of commercial banks should be one who not only keeps choosing the bank for service and recommends the bank to others,but also has a certain emotional dependence on the bank and can withstand the temptation from other banks.The factors that affect customer loyalty include customer per ceived value,customer satisfaction,and service quality.The customer perceived value refers to the overall evaluation of the product or service utility after customers weigh the gains they perceive and the cost they pays to the goods or services.Customer satisfaction refers to the acceptance and the generated dependence of a product or service after the use.The promotion of service quality can effectively improve customer loyalty,and can be transmitted through customer perceived value and customer satisfaction.Given the actual situation of customer management in Hankou bank,the paper designs a measurement system of the customer loyalty and its influencing factors for Hankou Bank.In terms of loyalty measurement,behavioral indicators and attitude indicators are taken into consideration,while the factors affecting loyalty include four aspects: brand reputation,product quality,switching cost and service quality.According to this system,a questionnaire was designed to investigate the customers of the Bank of Hankou at random,and 147 effective samples were finally obtained.After correlation analysis,regression analysis,cross analysis of the effective samples,the paper draws the following conclusions: the customer loyalty towards Hankou Bank is not high;most customers of Hankou Bank are young and middle-aged people;the customers of Hankou Bank have a relatively higher level of knowledge;product structure has a greatest impact on the customer loyalty towards Hankou Bank,which is followed by service quality,brand reputation and switching cost;the loyalty of female is higher than that of the male;the loyalty of young clients is higher than that of the elder's.In view of the results of data analysis,this paper puts forward a practical and effective way to improve the customer loyalty towards the Bank of Hankou.Firstly,the customer should be subdivided and differentiated-marketed according to different age,sex and income.Secondly,the products of the Bank of Hankou should be optimized to improve the yield of the product,reduce the risk of the product and avoid the homogeneity with other competitors.At the same time,the bank should strengthen the innovation of business that concerns the small and micro enterprises and scientific and technological enterprises.Thirdly,the bank should improve the overall service level.