Commerce Bank Case Study Example | Topics and Well Written Essays - 750 words

Commerce Bank - Case Study Example It has been recommended that the bank keeps the entertainment costs at minimal and ensure that the staffs are not distracted by the entertainment programs from offering prompt services to the customers. There is no need to spend too much on entertainment as it has no direct contribution to the company overall profitability. The entertainment programs offered in the different branches should also be coordinated to ensure that customers receive consistent treatment. Commerce Bank is one of the banks based in New York which has managed to grow organically in a city which has the largest number of banks. The bank has achieved this success by differentiating its product and services from those of its close competitors. It has always been the banks aim to retain the customers by â€Å"wooing† them through great customer service. It also managed to attract a large number of customers by designing the physical structures of their branches in an appealing way and locating them in close proximity to the target market. The bank had experienced considerable growth and received several awards 2001 due to its superb customer service. Over time, other competing banks have adopted Commerce Bank strategies of wooing the customers. It has treated its clients not as customers but fans and transformed banking into a retail business and not service industry. In a bid to differentiate itself from the rival bank, the company has now developed the retailterta inment where it provides various forms of entertainment to keep the customers busy as they wait to be served in the banking halls of the various branches (Frances 2006). As such the company has introduced an entertainment program on Fridays where customers are served with free hot dogs and are entertained by a juggler and a guitar player. Some managers feel that this could be taking the retailtertainment too far and may actually act as a