Customer Management

Steven Finlay

Chapter 6 in The Management of Consumer Credit, 2010, pp 115-131 from Palgrave Macmillan

Abstract: Abstract This third phase of credit management — customer management — begins once a credit agreement has been created. It continues until the customer has repaid their debt according to the terms of the agreement or they become delinquent, requiring collections action to be taken (the fourth phase of credit management). The goals of customer management are twofold. First, to ensure that relationships with customers function as intended and an acceptable level of customer service is provided. Second, to maximize the return generated from customers over the lifetime of the relationship. These goals are achieved by undertaking: 1. Operational management: This is about providing and managing the infrastructure required to maintain customer relationships. For example, dealing with customer enquires, updating account records when transactions occur and issuing statements of account. 2. Relationship management: This is about understanding and meeting customer requirements for products and services over the long term. For example, regularly reviewing the credit limit and APR for a credit card customer, and identifying which mortgage customers are suitable targets for cross selling credit cards, personal loans and insurance.

Keywords: Credit Card; Manage Customer Relationship; Consumer Credit; Credit Limit; Customer Management (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-27522-5_6

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DOI: 10.1057/9780230275225_6

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