Managing and rewarding customer loyalty
A Britannia case study

Page 1: Introduction

This case study focuses on the way in which Britannia Building Society has continued to place its customers at the centre of all its activities in order to produce the benefits that guarantee a successful future.Britannia is one of this country's leading financial services organisations with a strongcompetitive advantage from its 'Mutual' organisational structure which provides anunbeatable link...
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Page 2: Customer service

In such a competitive environment, customers will choose to use those organisations which most closely meet their needs. Customer service, therefore, is at a premium in such a competitive environment.Customer service is an ideal approach to developing a “one-to-one” relationship with customers and the term can be used at two levels: on one level “customer service” is the...
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Page 3: Satisfied customers

The profits of a public limited company, such as a bank, are distributed to its owners (the shareholders) in the form of dividends. Britannia’s owners, its members, are all customers, giving Britannia Building Society a unique advantage over its non-mutual competitors – and their interests and those of the organisation are directly aligned. In addition to the ordinary benefits that the...
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Page 4: Building customer value

Every business needs to attract and keep customers. Any organisation must: keep the business ahead of its competitors design products to satisfy customers’ needs and requirements ensure that customers remain loyal by treating them fairly and openly create a reputation for caring about their customers reassure customers that their purchase decisions have been good ones And, in the case of...
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Page 5: Rewarding loyalty

Britannia, as an organisation, is based on its members and their loyalty. Loyalty is a characteristic of the utmost importance to building societies. Members have always been encouraged to see themselves as being at the heart of the organisation and the organisation always serves its members to the best of its ability. In order to foster and develop this relationship the organisation shares its...
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Page 6: Conclusion

In recent times a small number of former building societies have moved away from their roots to become public limited companies. However, in doing this, the essential contact point they have with their owners is immediately lost. The new owners become shareholders instead of members, and will be more interested in share prices and dividends than customers. Becoming a public company has obvious...
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