Introduction
In the new consumer market environment, shaping an excellent customer experience has become a new path to drive the continuous and stable growth of enterprises. By clarifying brand positioning and value, formulating experience strategies, identifying key moments, creating peak experiences, and establishing management and monitoring systems, customers can perceive and identify with the brand’s value through the sum of their experiences, creating a consistent and differentiated experience throughout the entire process. This module will analyze the case of an enterprise that has achieved commercial success by providing high-quality services based on the five-module experience framework model, with customer experience as the main thread.
-Case Analysis of CMB Private Banking
01 Industry Overview
With the rapid development of China’s economy and the continuous accumulation of personal wealth, private banking services, which provide professional, personalized, and comprehensive high-end financial services and all-round non-financial services to high-net-worth clients, have gradually become a new battleground for banking competition. In recent years, many commercial banks in China have proposed to transform into wealth management banks, and private banking services have increasingly become a must-contend area for numerous commercial banks, with many banks upgrading their private banking services.
The domestic private banking sector has a large growth potential, and banks are developing in a tiered manner. The potential of the domestic wealth management industry is huge. According to the "2023 China Private Wealth Report" released by CMB, the macroeconomy is entering a recovery phase, and the wealth market is expected to warm up. In 2024, the total scale of investable assets of high-net-worth individuals in China is estimated to be close to 127 trillion yuan. In the future, private banking will present trends of business globalization, integrated banking services, and the widespread application of financial technology.
China Merchants Bank (CMB) launched its private banking business in August 2007, becoming the second bank in China to offer such services. In 2022, CMB managed assets worth 3.79 trillion yuan, with an average of 28.1338 million yuan per client, ranking first among all listed banks. It has also won the "Best Private Bank" award multiple times.
Affected by multiple factors such as the macro environment, the growth rate of China’s private wealth market slowed down from 2020 to 2022. Consumers’ investment confidence weakened, and they became more cautious in asset allocation. Under the circumstances of low loyalty of private banking clients, small differences in per capita AUM (Assets Under Management) among banks, and small differences in products among banks, all banks are facing challenges. How does China Merchants Bank’s private banking business maintain a leading position and far exceed the industry average level today when banking products are trapped in homogeneous competition?
02 Brand Characteristics
Brand Gene of Valuing Customer Experience
Since the 1990s, when China Merchants Bank was still an unknown small commercial bank, in order to compete with major banks in a differentiated way, it began to creatively take "service" as one of its founding principles. At that time, the common impression of the public on banks was that "it is hard to enter the door, face is unfriendly, and things are hard to handle". However, in 1996, Shenyang Branch of China Merchants Bank began to provide customers with free milk, coffee, cold drinks and pure water in its outlets. This completely different and heart-warming experience quickly captured the minds of many people, making this small bank with few outlets begin to be remembered and favored by the public.
Since then, starting from the simple "milk and coffee", the blood of "customer-centricity" has been flowing. China Merchants Bank has gradually summed up a series of complete banking service concepts, and created industry-leading products and services such as standing service, smile service, low-counter service, Sunflower Wealth Management Service, and continuously iterated digital services. This has made the customer experience concept of "Changing for You" deeply rooted in the bones and precipitated in the brand gene of China Merchants Bank.
The advantages established by China Merchants Bank in its retail business have made the "Sunflower" brand deeply rooted in customers’ hearts, with strong brand advantages. Customers will unconsciously associate the feeling of high-quality service with the signboard of China Merchants Bank, creating conditions for the accumulation of private banking clients.
Insight into Target Customers
With the first-mover advantage in retail business and brand influence, and relying on the strong investment research capabilities and product screening capabilities of China Merchants Bank’s private banking, it is able to provide customers with more valuable investment products and professional wealth management services. China Merchants Bank has set the threshold for private banking clients at a monthly average daily total assets of over 10 million yuan, a standard far higher than that of its peers. When gaining insights into these high-net-worth individuals, China Merchants Bank found that beyond personal financial management and investment, many clients with strong financial strength attach great importance to how to preserve their family’s economic strength and pass it on to the next generation.
In response to the evolving needs of private banking clients, China Merchants Bank has shifted from originally providing retail services to clients to offering integrated "Personal, Family, Enterprise, and Society" services to private banking clients and their affiliated enterprises. - "Personal" refers to personal wealth management; - "Family" encompasses family wealth management, children’s education, health management, etc., enabling entrepreneurs to focus wholeheartedly on their careers; - "Enterprise" means providing comprehensive commercial banking and investment banking services for the enterprises behind individual clients; - "Society" refers to charitable and public welfare services. This system basically covers all financial needs of high-net-worth individuals and extends to areas such as charity, education, medical care, and daily life, making private banking business an ecological entrance through which clients can access the entire service resources of China Merchants Bank, thus achieving an "upgrade" in positioning.
Strengths in Capabilities:
At present, as the differences in capabilities such as integration, productivity, and outlet layout among various banks are not significant, China Merchants Bank, based on its insights into market opportunities and customer needs, has focused on enhancing its own capabilities and developed advantages in multiple aspects:
High-Quality Products: Innovative and Diversified Wealth Management Products and Value-Added Services.
Leveraging the outstanding investment research capabilities of China Merchants Bank’s Private Banking Department, the bank conducts follow-up market research, actively innovates strategic models, screens high-quality institutions, and has built an open platform covering full-range products and multi-market access as well as a rich and diversified value-added system. It took the lead in the industry to introduce innovative products such as private equity stock funds, private equity funds, real estate funds, hedge funds, and commodity futures investment funds. China Merchants Bank has continuously released the *China Private Wealth Report*, persistently tracking the evolving needs of high-net-worth clients. By closely following client demands, it has taken the lead over peers in launching various product services. Meanwhile, through cooperation with renowned domestic and foreign investment institutions, the bank has introduced more high-quality investment products and strategies, providing clients with a broader investment perspective.
The Private Banking Department of China Merchants Bank has built an open platform with full-range products and multi-market coverage, along with a rich and diversified value-added system. With high-quality control, full-life-cycle product management, and a strict interest protection mechanism, the department has strived to create an open product platform, establishing a product system consisting of 5 major categories and 30 subcategories. This enables clients to conduct large-scale asset allocation including fixed-income, cash and monetary, equity, alternative, and protection-oriented assets. At the same time, the value-added services provided by China Merchants Bank’s Private Banking include "comprehensive medical and health services", "unrestricted golf services", "global premium exclusive services", and "exclusive high-end social platforms", covering various aspects such as quality life, health care, travel and business, children’s education, and social platforms.
Technical Support: Intelligent Services Empowered by Technology
In 2018, China Merchants Bank proposed to build a new digital model for retail finance 3.0, deepening the application of financial technology. It accelerated the digitalization process of private banking business in aspects such as accurate identification of customer needs, improvement of relationship managers’ professional capabilities, provision of professional financial service solutions, and optimization of internal operational processes. Successively, it launched systems and services such as the "Wealth W+ System", "Mojie Intelligent Investment", and "Intelligent Fund Portfolio Sales Service", continuously enhancing business operation efficiency and customer service experience.
Through platforms such as mobile banking, online customer service, and intelligent investment advisors, customers can conduct operations such as fund management, investment transactions, and information inquiries anytime and anywhere. In addition, China Merchants Bank also uses technologies such as big data analysis and artificial intelligence to provide customers with more accurate market analysis, investment recommendations, and risk early warnings, helping customers make more informed decisions.
Service Culture: Customer-Centricity
China Merchants Bank’s Private Banking always puts customers’ needs and interests first. By providing tailored solutions and services, it ensures the preservation and appreciation of customers’ assets while meeting their pursuit of a high-quality life. Not only does it offer personalized service plans based on customers’ specific circumstances and needs, but it also pays attention to non-financial services such as customers’ lifestyles, family governance, and enterprise needs, providing one-stop comprehensive wealth management services.
China Merchants Bank attaches great importance to the maintenance of long-term customer relationships, as well as the protection of customers’ privacy and asset security. Through continuous communication and services, it gains an in-depth understanding of customers’ long-term needs and goals. Meanwhile, it adopts strict security measures and privacy protection policies to ensure the safety of customers’ information and assets.
China Merchants Bank’s Private Banking provides thoughtful, professional, high-quality, and efficient services on both the service and business ends, making customers always feel secure, reliable, warm, and comfortable.
03 Brand Experience Analysis
Brand Commitment:
—— Clarify the brand commitment and reshape consumer perception
Derived from insights into high-net-worth individuals, China Merchants Bank’s private banking services adhere to the business philosophy of "Helping your family business thrive is our duty". This philosophy serves as a shared internal goal and a value commitment to clients. China Merchants Bank’s private banking is dedicated to providing professional, comprehensive, and private financial and non-financial services for high-value clients. The easily perceivable brand commitment has also attracted a large number of high-value clients for it.
—— Define clear experience strategies and principles to guide the implementation of experiences, so as to fulfill the brand commitment to consumers
After in-depth insights into the core target groups, China Merchants Bank’s Private Banking provides customers with comprehensive wealth management services integrating comprehensiveness, personalization, and privacy based on its own resource advantages and service capabilities. Corresponding service strategies born under such principles include "comprehensive and dedicated experiential consulting services", "rich and diversified value-added service systems", "tailor-made comprehensive wealth management solutions", and "open platform products covering all categories". These principles and strategies help China Merchants Bank’s Private Banking clarify the vision, tone, and direction of efforts for customer experience, and guide the specific implementation of customer experience.
Analyzing China Merchants Bank’s Private Banking Using the Value Proposition Pyramid Model:
Customer Journey, Critical Moments:
—— The core of shaping the experience journey lies in starting from customer needs, creating Moments of Truth (MOT), and leaving unforgettable memories for customers.
Leveraging its strengths in products, technology, and service culture, China Merchants Bank has made customer experience the top priority across the entire bank, forming a consensus. Under a systematic and rigorous working approach, it optimizes and improves the customer journey end-to-end, enhancing the all-round customer experience to increase customers’ trust and satisfaction with the services. This, in turn, ensures customer conversion, retention, and recommendation rates, creating a sustained influence. Stages in the private wealth management customer journey:
By integrating business goals, customer experience objectives, and capability advantages, China Merchants Bank has created "moments of delight" in certain stages where users receive experiences that exceed expectations:
1. When preparing to collect the card after online account opening: Relationship managers will contact customers to inform them of all matters related to the card number selection benefits and provide door-to-door card delivery services.
2. When in a foreign country with communication needs: As the only domestic private bank offering global connection services, it provides hotline support to ensure issues are resolved, leaving customers worry-free.
3. During investment transactions: The smooth and user-friendly APP offers one-stop solutions for all wealth management needs, while also providing high-end services such as art appreciation and luxury auctions, bringing customers a distinguished experience.
4. In asset performance tracking and adjustments: Customers can view real-time performance of their investment portfolios and dynamic optimization suggestions. Quarterly operation reports and annual comprehensive "health check" reports are provided, which conduct in-depth analysis of each product’s performance, stock/bond holding characteristics, income sources, and risk exposure. The latest market insight reports are also available, making customers feel in control, secure, and reliable.
Such moments of delight run through the entire customer experience journey, collectively demonstrating the "comprehensive dedication", "rich diversity", "tailor-made", and "full-category coverage" of China Merchants Bank’s private banking services. They reflect the brand’s high-end style and professional temperament, allowing customers to clearly perceive and deeply remember, thus forming a brand imprint in their minds.
Internal Actions for Journey Reengineering:
—— Rigorous and comprehensive work paradigms, frontline empowerment, employee training, and team building.
To ensure that the value of experience is implemented and truly felt by customers, the Private Banking Department of China Merchants Bank has a well-established work paradigm, namely the "1+N" service model and a rigorous working method - the "Spiral Improvement Four-Step Work Method".
The "1+N" service model consists of 1 private banking relationship manager and an N-member team of expert-level investment advisors. Each customer is entitled to one-on-one service provided by a senior and professional relationship manager. These relationship managers not only have a deep understanding of customers’ preferences and needs but also offer efficient financial planning, business travel assistance, and other thoughtful services, thus freeing customers from trivial matters and allowing them to focus on what they truly care about. Behind the relationship managers is an "investment advisor team" carefully selected by China Merchants Bank from a global pool. This team is composed of experts in various financial fields, who can leverage the strong platform resources of China Merchants Bank to provide customers with professional investment advice and solutions.
The "Spiral Improvement Four-Step Work Method" is a cyclical and iterative process of "Listening, Advising, Implementing, and Tracking", always centering on customers’ needs. The expert team deeply listens to and understands customers’ needs, then proceeds to formulate wealth management plans, implement the plans, and conduct tracking and feedback, before returning to further listening to customers’ needs. Through such a cycle, the expert team can not only gain a deeper understanding of customers but also timely adjust asset allocation plans based on customer feedback and market changes, ensuring the professionalism and adaptability of private banking services to better meet customers’ long-term goals.
On the basis of standardized services, China Merchants Bank empowers frontline employees and encourages them to provide personalized services according to customers’ specific situations. This complete working method system has helped China Merchants Bank’s Private Banking win customers’ favor and trust through professional services and product screening capabilities. In addition, in terms of team building, China Merchants Bank’s Private Banking attaches great importance to employees’ professional training and career development. It continuously improves employees’ professional knowledge and service skills through regular internal training and overseas study opportunities. It has also established an efficient team cooperation mechanism and a fair incentive system to encourage employees to actively participate in service innovation and improvement, ensuring that the team can collaborate efficiently to jointly provide high-quality services to customers.
Continuous Monitoring and Optimization:
——Sound management enables sustainable customer experience through experience monitoring and continuous improvement.
The financial industry’s service chain is far more extensive in length, breadth, and time span, with more critical service content and more complex service models compared to general service industries. To enhance customer experience in response to challenges such as slowing economic growth, disintermediation in financing, interest rate liberalization, and disruptions from internet cross-industry competitors, deeper and more professional continuous monitoring and improvement are required. This has raised increasingly high demands on banks’ attention to and maturity in customer experience management.
Traditional experience management methods are outdated: they struggle to identify problems quickly, fail to accurately track experience loopholes due to detachment from real scenarios, suffer from poor data accuracy and usability, and involve inefficient analysis and improvement processes. These issues are bound to lead to more severe customer churn and declining reputation. To address such challenges, China Merchants Bank has leveraged its technical capabilities to pursue digital transformation practices and built the "Fengling" (Wind Chime) Customer Experience Management System.
Combining business logic with customer journey scenarios, China Merchants Bank has built a customer experience measurement pyramid model. Starting from the top-level North Star indicator, it integrates experience data (X Data) and operational data (O Data) to decompose layer by layer into dozens of customer journeys, and further into real-time monitoring indicators for experience factors at each touchpoint. This provides a customer perspective for the bank’s service management and business innovation, establishes cross-departmental consensus, forms a complete set of experience monitoring indicator systems, and promotes the creation of a continuously iterative closed-loop mechanism for customer experience management.
Under the role of such system indicators, through scenario-based and personalized intelligent experience data collection, customer experience evaluations can be precisely targeted to each customer, each transaction, each employee, each product, and each channel, realizing penetrative customer experience management. It also helps the platform build a role-based comprehensive experience evaluation system, facilitating the monitoring, analysis, management, and tracking of customer experience.
By establishing a customer experience management system, the entire bank is actively promoted from top to bottom, with deep participation and joint efforts from all departments. Unified understanding has been achieved, and special projects have been established, serving as an important guarantee for China Merchants Bank’s digital transformation of customer experience.
Data barriers between departments have been broken down, covering over 20 systems such as customer management platforms, customer service platforms, content publishing platforms, and marketing platforms. This solves information silo issues such as scattered organizational data, inconsistent calibers, inconsistent structures, and difficulties in data sharing and usage.
China Merchants Bank has incorporated customer experience indicators into the key performance indicators (KPIs) of all levels, aligning goals across all levels, connecting the internal organization, unifying steps, clarifying the responsibilities of each department, optimizing and simplifying action paths, improving organizational operational efficiency, promoting efficient collaboration among departments, and driving the efficient implementation of experience improvements. At the same time, the 全行《Experience Operation Management Measures》has been issued, clarifying the responsibilities and tasks of each department and level in data collection, monitoring and analysis, service optimization, and overall management.
Based on comprehensive, systematic, and real-time customer experience data, all departments can grasp customer experience trends, conduct regular problem sorting and exploration, deeply understand business pain points and customer needs, optimize resource allocation, and achieve efficient service upgrades.
Such a customer experience management system helps China Merchants Bank shift from passive response to active empowerment, fosters a digitally driven customer service and precision-oriented experience culture, and promotes the emphasis and correct understanding of customer experience across all departments, forming an effective positive cycle.
Conclusion
Since the 1990s, China Merchants Bank has integrated the philosophy of valuing customer experience into its brand gene. Since launching its private banking services in August 2007, it has gradually refined a service system with professional investment advisory services as its core competitiveness amid fierce market competition and challenges. It has built a comprehensive open product platform with a complete range of offerings, and its all-round asset management and product service system has become the "first choice of customers".
Through efforts in brand building, value communication, formulation of experience strategies and methods, reshaping of customer journeys, creation of moments of delight, and investment in organizational experience implementation and the construction of an experience management system, China Merchants Bank has demonstrated that in a challenging market environment, prioritizing customer experience and making the right investments can yield stable, sustainable, and cost-effective long-term returns.
 |
