Banks, retailers and their customers: a relationship marketing perspective

Abstract

As retail organisations offer financial services to their customers at an increasing rate, this paper uses the emerging relationship marketing paradigm to gain strategic insights. The first level of analysis is at the organisation/customer interface. Four scenarios are analysed, which have recently emerged in international situations. These show that retail organisations are reducing the interaction and communication that banks have with their customers. Relationship marketing theory is then used to understand the implications that these scenarios pose for banks. The second analysis is at the business‐to‐business level. The application of the concept of relationship marketing at this level suggests that banks and retail organisations should focus on co‐operation rather than competition. This paper proposes strategic alliances will enable both parties to achieve more together than individually.