Faculty of Commerce, Law and Management

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    Corporate Customer Relationship Management in the South African Payment Card Industry
    (2012-10-02) Coetzee, Jason Boyd
    Payment card industry players remain challenged, both globally and within South Africa, to differentiate their value offering from that of their payments industry competitors who all offer similar, “commoditised” products and services. In 2004 therefore, product-driven MasterCard embarked on a strategic organisational “CRM” implementation in order to evolve into a customer-centric entity, thereby ensuring its long-term sustainability and competitiveness. This research report identifies and evaluates the factors critical to the success of the implementation of a corporate Customer Relationship Management (CRM) approach within the South African payments industry. It also verifies the relative order of importance of these factors as well as key differences extant between a corporate and consumer CRM approach. It aims to provide an informed understanding of MasterCard‟s ongoing CRM intervention in South Africa in order to enable the organisation to better optimise and leverage its CRM programme. The research made use of the case study method to assimilate data gathered from a total of 14 respondents from MasterCard (both South Africa and International) and South African MasterCard issuing banks. Respondents were selected based on their involvement with the MasterCard CRM implementation in South Africa - either as implementers or recipients thereof. Key findings include the substantiation of a more formalised and structured engagement approach and the role of Key Account Management (KAM) in corporate CRM as opposed to consumer CRM. The research also confirmed that the corporate CRM critical success factors include broader management, employee and customer buy-in; in-depth customer knowledge and differentiation; CRM measurement and performance monitoring; continuity and consistency in CRM application; organisational culture and process change as well as CRM-related training and tools.
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    Customer retention in the credit card market in South Africa
    (2011-05-30) Mudau, Abel
    Regulatory, structural and technological factors have significantly changed the credit card environment throughout the world during the past two decades. Increased competition in the credit cards market and the arrival of non-traditional credit card providers like retailers and airlines has not made the situation any easier for banks, who are the main players. This has resulted in a decrease in customer loyalty and higher customer churn. The retention of customers has become the ultimate determinant of the survival of any organisation and each company has to continuously improve its service offerings to ensure that it can retain its customers. It is critical that organisations understand and completely satisfy their customers’ needs in order to retain them. The purpose of this research was to explore the challenges that the South African credit card organisations face in their attempts to retain customers. More importantly, this study explored the challenges that are distinctive to South African credit card issuers, as perceived by the banks. In-depth, semi-structured interviews were used to obtain the views of customer retention analysts and practitioners, credit card associations (VISA and MasterCard), senior managers and executives involved in the credit card environment. The main findings were that the credit card organisations would not be able to retain customers unless they provided a consistent quality of service and continually attempted to satisfy their customers’ needs. The loyalty programmes that were in place generally didn’t help to retain customers even though customers complained in instances where there was none. The competition in the South African credit card market was found to be not strong enough to result in a huge exodus of customers from one company to another. The high turnover of frontline employees was found to have a very negative impact on customer retention rates. This report will assist credit card managers and executives that are involved in customer retention activities to appreciate the challenges that arise when implementing different customer retention strategies. With that insight, they will be in a better position to either refine their strategies or find other ways of mitigating these challenges.
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    Attributes of credit cards that lead
    (2011-04-15) Johnson, Karen
    Purpose of the study - The purpose of the study was to identify what the attributes of a credit card were that consumers found desirable and that led to acquisition of a particular credit card. Further analysis was conducted to identify whether there were any differences or preferences for these attributes according to certain demographics of the consumer. Design / Methodology – Conjoint Analysis was used to allow members to identify what product bundle they preferred. This was done using hypothetical credit cards that consumers were asked to rate on a scale of 0 – 10. This rating was done during 150 face to face interviews. The data from these interviews was then analysed using Sawtooth market simulator which makes it possible to identify which attributes and utilities were the most attractive to the consumer. Further studies using One way ANOVA and a Two sample T –test was used to identify demographics differences. Findings – On average, consumers found the source of the card to be the most important factor when choosing a credit card, and the financial components of a credit card were more important on average than the value added benefits. Preference for these attributes and utilities was significantly influenced by household income with marital status and age showing less influence in the preference of certain attributes and utilities. Interestingly, the way people pay their cards, whether they were revolvers or convenience users, has shown to have very little impact on the attributes that they prefer in a credit card. Value – Despite the growth of credit cards in the South African market in recent years, there seems to be little research in South Africa about why consumers would choose a particular credit card. Introduction of the National Credit Act (no 34 of 2005) has also caused people to become more discerning about the credit that they choose to carry, meaning that the credit card issuer needs to ensure that their cards are appealing and attractive to the market that they are trying at reach. This study intends to close that gap