MBA504 Data Analysis Problem Solving and Digital Operations

Added on -2020-02-23

| MBA504| 18 pages| 2710 words| 47 views

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Data Analysis, Problem Solving and Digital OperationsStudent’s Name:The Name of the Course:Instructor’s Name:Date:
IntroductionCustomer churn rate, also referred to as the customer attrition rate is the number of customerswho discontinue their services from a certain organization or business within a certain period. For any business to keep on growing, the number of new customers must always exceed the churn rate. Customer churn rate is usually calculated by dividing the number of customers who leave a business to the number of new customers who join the business. Churn rate is normally expressed as a percentage [CITATION Bri14 \l 1033 ].In this report, we are going to take a case study of Commonwealth Bank to do some data analysis on some of its data. Commonwealth Bank of Australia is a multinational bank which operates in several countries such as Fiji, New Zealand, the United Kingdom, the United States, and Asia. It offers several financial services to the people of Australia and other countries. The services offered by the bank include business and institutional banking, insurance services, superannuation, funds management, investments, share-broking services. The corporate responsibility of the bank is to excel in delivering its vision which aims at securing and enhancing the financial status of the people and other businesses [ CITATION Com17 \l 1033 ].The major problem facing Commonwealth BankThe major problem which has been affecting Commonwealth Bank is the customers’ unsatisfaction with the bank. Most customers are not satisfied with the services offered by the bank and have ended up leaving the bank, and this has raised the churn rate. However, the bank has been working extremely hard to make sure it satisfies most of its customers to reduce the churn rate of thecustomers.
The key metrics that define and address the customers’ unsatisfactionThe bank has undertaken some key metrics to make sure it satisfies most of its customers for them to remain royal. Firstly, the bank has increased the customers’ engagement in its innovations, and this has helped to increase its profits. The bank recorded an increase of 2 percent in the net profits in the 2016 financial year. The engagement of customers in its innovations and other operations has helped to increase the profits made by the bank and has also improved the customers’ satisfaction in the business. Commonwealth Bank was ranked number one in the retail customer satisfaction in all the months of the 2016 financial year [ CITATION Aza16 \l 1033 ].Also, the bank has been giving some rewards and other bonuses to its customers. These rewards and bonuses have helped to improve the customers’ satisfaction, and many customers have remained to be loyal to the bank.Another metric undertaken by the Commonwealth Bank to address the issue of customer satisfaction is giving loans to its customers at reasonably low-interest rates. The low-interest rates offered by the bank have resulted in improved customers’ satisfaction, and many customers have joined the bank which has led to an increase in the net profits margins of the bank [ CITATION Dav13 \l1033 ]. (A simplified statistical table showing the rates of interests of the Commonwealth bank is shown on the next page).Another metric which the bank has taken to improve the satisfaction of the customers is to make sure it pays all of its employees well. Paying the employees well helps to improve their motivation. They will be happy working in the bank, and therefore, offer excellent services to the customers, and this will improve the satisfaction of the customers [ CITATION Com16 \l 1033 ]. (A
graph showing the payments of various employees depending on their academics qualifications is shown on the pay-scale on the next page).All the metrics discussed have helped to maintain a good financial status of the bank. The financial status of the bank of the year 2016 is shown on the next page.

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