One of the major ways an organisation can differentiate itself from its competitors is to provide a unique experience. This unique experience is the aggregation of all those moments of truth the customer goes through interacting with the organisation and the image it portrays to the world. Many call this the total brand experience. To make this experience really work you need to be innovative. To make the point I am going to look at a major bank we all know Citigroup.

Over the last few years they have not had some of the best press but they have remained one of the most innovative and in some instances the most customer focused of banks for many years. Yet regulatory problems in the US and overseas have dented their image.

The problems that Citigroup had has come back to haunt them. They want to grow their business on their home turf in the USA and especially New York. There have problems with their retail banking client base. Their current customers buy fewer products or services like credit cards, mortgage, or checking accounts (current accounts) than customers of their competitors such as B of A and JP Morgan Chase. This makes Citigroup have a less profitable customer portfolio.

They however cannot get out of this the old way, by acquisition – that is buying more customers. The Federal Reserve noting the number of regulatory run-ins Citigroup has had since 2002 has stopped them making any worthwhile acquisitions for now. So they must do what every other player that cannot grow simply by acquisition; get out there and work at getting their existing customers to buy more and find new profitable customers just like everyone else.

Steven Freiberg the co-head of Citi’s Global Consumer group says “If we we’re going to grow, we can’t rely mainly on the old model anymore. We are taking a much more focused view of organic growth”. As he sees it Citi has enough customers they just need to buy more! To achieve this he has of course reorganised the division and is reorganising around the customers not its products (wow). The most interesting part of this change is that he intends to use trusted approaches (read legacy) to winning more business.

Existing reward systems that give customers points that they can redeem at stores will be revamped and used more extensively. They even intend to track their customers (just like other banks) so that they can ply them with special offers and discounts. New branches will be built at a far faster pace than ever before. They are even getting the tellers to try and sell as does the market leader Wells Fargo that gets some 40% of their retail sales from their tellers.

So far for all the rhetoric about getting their existing customers to spend more I cannot figure out what they are going to do differently. Are they going to build new levels of trust through ethical sales techniques? Are they creating a more rewarding customer experience through their products or services? I think all they are going to do is go for price and rewards not build trusting relationships that will not last any longer than when the next bank comes along and makes a more attractive offer. So much for customer loyalty whatever that is.

What I wonder about the whole Citigroup approach today is that it is the same old thing. Now few people would believe that Citigroup personnel lacked drive, motivation or sheer will in their quest to win business in the past. If that is the case unless they try some innovation on the positive customer experience and differentiation front tomorrow their efforts will have minimal impact. Doing the same thing over and over again and expecting a different result is often seen as a sign of ……

There is a way for them to get better at retaining the right customers and getting them to buy more and that approach requires them to start having a meaningful dialogue with their customers. There is not sufficient space in this short article to develop all the opportunities that exist. I propose to put forward a simple idea and then list some of the more obvious opportunities to create a valued dialogue that will enhance that customer experience.

Even a simple notification (in store sale, loan renewal, a special offer) can turn into an opportunity for a valued dialogue. For a financial services company informing someone of a renewal date for service and or product is an opportunity to focus on the customers financial needs. The notification should require a response that can then form the basis of a valued dialogue for both parties. So many direct mail, e-mail and SMS messages sent don’t create dialogue as their offer may not be strong enough or may not even exist. The customer must have a reason to respond. If you have an offer from a retail store that requires registration for a discount, a prize and or some valuable (to the recipient) offer you will more likely get some response.

To really be worthwhile to the customer your offer should be based on past purchases or behaviour patterns that identify some worthwhile (to both parties) propensities that requires a more direct dialogue based relationship. Some of the more useful dialogues are:

• Acquisitions: To bring in more customers – from a wide to narrow focus.
• Service-Follow-Ups: A thank you, a satisfaction check, another offer
• Win-Back: A special dialogue when someone wants to close a relationship.
• Reactivation: Provide dormant customers with a reason to communicate.
• Event Notifications: For focused marketing actions.
• Repurchase reminders: Maybe for consumables, subscriptions, toner and so on based on the average life-span of the product they purchased.
• Inventory and Price Alerts: They may be seasonal for clothes, new loan rate or when a new CD comes out that by an artist you have been noted to have bought before.
• Overstock or Clearance Opportunities: By identifying customers that have bought items like this before and informing them of an opportunity to pick up a bargain.
• Defection Interventions: Triggered by identifying purchase and usage patterns. This can fire off a win-back dialogue.
• Product/services development: Ask customers to help you design the future through co-collaborative solution developments.
• Reward Information: Keeping customers appraised of what they have accumulated or could accumulate if they took advantage of a special offer.(1)

The list above is a starter there are probably many other opportunities to create a valued dialogue that can add to the total positive customer (brand) experience.

The certainty of doing things the same old way with little differentiation even vigorously executed will not alter the outcome: low valued customer experiences - this means your customers are unlikely to purchase more from you or even stay with you. Building dialogues with you customers based on the wealth of information you have collected as part of your information and CRM systems should help plus a little creativity and innovative thinking.

(1)Adapted from “The Perfect Message at the Perfect Moment” - Kirthi Kalyanam and Monte Zweben – HBR November 2005

Michael Meltzer is a managing partner of Active Management Techniques that specialises in advising organisations on the use and the benefits of information to support relationship management in all its forms. He is a hands on partner who has experience spanning financial services, telecommunications, education and retailing. He has specialised in uses of information to support internal and external customer relationship management, e-business, customer knowledge and building organisations where innovation and learning can flourish. He is a respected author, sought after speaker, educator, consultant and experienced business manager. Company: Active Management Techniques