Introduction
Dunia Finance LLC is a globally recognized institution, which has its main offices located in Abu Dhabi, UAE. This organization is well known for the outstanding financial services it has offered for about 15 years since 2006. The company focuses on various pecuniary products such as fixed deposits, vehicle loans, and mortgage services. Dunia also provides monetary planning services and credit card supply.
The organization’s leader, Rajeev Kakar, has been working collaboratively with Ali Hurbas who is in charge of the Strategic Analytics department. Their main agenda entails developing mechanisms, which once implemented, can result in increased revenue and asset share. The two leaders view technology, specifically, data analytics, as one of the investment areas that can help in achieving this goal due to its capacity to alleviate risks.
Dunia acknowledges the role played by data analytics in reducing financial losses. The organization has been deploying the data analytics strategy, which helps it to remain updated with market trends. As a result, Rajeev Kakar has been proactive in ensuring the execution of mechanisms that have consistently enhanced the institution’s profitability levels. The continuous embracement of technology reveals why Dunia is ranked among the most competitive financial organizations not only in Abu Dhabi but also around the globe.
As this paper indicates, the organization’s cross-selling strategy has been resourceful in enhancing clients’ lifetime worth because of the associated minimal maintenance resources, including its capacity to boost their retention rates. Consequently, the institution has put in place the credit department, which relies on analytics to determine customers who qualify for cross-selling. However, this paper suggests the upselling approach, which Dunia can deploy as a way of enhancing its rapport with clients.
Differences in Banking between the United States and the UAE
Notable variations exist between the U.S. and the UAE’s banking sectors. For instance, expenses incurred by people who conduct businesses in the United Arab Emirates are more compared to those reported by bankers based in the U.S. Specifically, in the United States of America, credit and operational expenditures are lower compared to what is recorded in the UAE (Trenwith). In addition, the high number of citizens in America indicates the likelihood of getting more clients via credit bureaus. On the contrary, the United Arab Emirates’ move to seek names through the credit bureau is expected to witness a negligible response level due to its small population size.
Moreover, since the UAE is an emerging market, banking institutions in this country have a bigger role to play. For instance, they have to analyze clients’ data to determine their needs and, consequently, implement strategies aimed at retaining the existing ones while at the same time attracting a new pool of customers (Johnson and Friend 52). In the U.S., which is a developed economy, personnel in the banking industry have specialized in particular areas with a view to offering efficient and satisfactory services to a large number of customers.
Banks in upcoming economies such as the UAE are exposed to more threats due to the prevailing uncertain political, legal, and economic forces. Hence, conducting business in this country requires financial institutions to invest more resources in dealing with any eventualities. The situation in the U.S. is different because banks operate in a stable political and economic environment, hence recording minimal financial and legal risks.
The Impact of Analytics on Customer Relationship Management at Dunia
The UAE adopted the analytics system due to the benefits, which had been recorded by countries such as the U.S. For instance, similar to the Social Security Number used in the United States of America, the UAE introduced a system of acquiring and analyzing customers’ information using a unique code, namely, customer identification number. This exclusive approach helped Dunia to establish a database necessary for its analytics procedures with a view to boosting the aspect of customer relationship (Desik and Behera 59). Today, analytics has been resourceful in enabling the company to quantify decisions concerning its clients’ demands and product categories.
Hence, Dunia’s steady growth can be linked to its embracement of analytics, which has made it successful in offering financial services that are in line with the desires of contemporary customers. In addition, analytics has contributed to the company’s enhanced credit management. For example, deploying clients’ demographic and behavioral information has enabled the organization to effectively recognize those who are eligible for mortgage facilities, hence minimizing the risk of loan defaulting from unsuspecting customers (Desik and Behera 62). Analytics has also helped Dunia to maintain its leading position by providing financial products and services that are customized and updated to match customers’ existing needs.
Customer Lifetime Value
Dunia has a major role to play in influencing customer lifetime value (CLV). Having a large number of loyal clients can help the company to make well-informed projections regarding its profitability levels, including the amount to invest in other activities such as CSR. Hence, Dunia can enhance the element of customer lifetime value by focusing on upselling and cross-selling. These mechanisms encourage customers to select related or corresponding items available in the company, as opposed to acquiring them from competitors’ stores (Johnson and Friend 55). These strategies improve the company’s interaction with clients.
The institution can also invest in customer satisfaction strategies, including recognizing loyal consumers of its products. Having a functional policy that emphasizes the idea of providing quality services and enticements to clients can influence its CLV levels (Kumar et al. 35). In addition, Dunia can deploy the upselling strategy of ensuring that all employees are satisfied by providing reasonable remuneration packages, health covers, and work-life balance. This approach is founded on the awareness that contented workers are able to demonstrate the commitment to a company’s mission and vision.
Cross-Selling Versus New Customer Acquisition
Dunia’s strategic analytics unit, headed by Hurbas, is currently focusing on cross-selling, as opposed to new customer acquisition. This strategy is appropriate because it enables the organization to establish a pool of committed clients while at the same time enhancing its global reputation (Johnson and Friend 63). Hence, Hurbas’ idea of cross-selling by producing alternative products and services is in line with the company’s goal of satisfying clients and building a global brand.
The strategy has boosted Dunia’s competitiveness in the finance industry, especially following Hurbas’ endorsement of analytics as a measure for ensuring that the company offers items that match its clients’ prospects. Overall, consistent deployment of cross-selling is projected to boost the company’s revenue growth in the banking sector.
Conclusion
As revealed in this paper, Dunia’s performance in the finance industry will solely depend on its capacity to utilize technology in the delivery of products and services to customers. Due to the challenges experienced by banks that operate in emerging economies such as the UAE, Dunia has effectively implemented analytics strategies adopted from developed countries, including America. As such, it has continued to perform exemplarily in a country characterized by an unstable political, legal, and economic environment.
Analytics has helped the company to make sound decisions regarding its products and services. Dunia has also benefited from enhanced customer lifetime value due to its execution of appropriate client retention and attraction strategies. The paper finds Hurbas’ plan of focusing on cross-selling and upselling appropriate in improving the company’s profitability and global standing.
Works Cited
Desik, P. H. Anantha, and Samarendra Behera. “An Analytics-Driven Method for Profitable Cross-Selling of Insurance Products.” The IUP Journal of Knowledge Management, vol. 13, no. 1, 2015, pp. 59-70.
Johnson, Jeff S., and Scott B. Friend. “Contingent Cross-Selling and Up-Selling Relationships with Performance and Job Satisfaction: An MOA-Theoretic Examination.” Journal of Personal Selling & Sales Management, vol. 35, no. 1, 2015, pp. 51-71.
Kumar, V., et al. “Regaining “Lost” Customers: The Predictive Power of First-Lifetime Behavior, the Reason for Defection, and the Nature of the Win-Back Offer.” Journal of Marketing, vol. 79, no. 4, 2015, pp. 34-55.
Trenwith, Courtney. “Why Are Some of the World’s Biggest Banks Leaving the UAE?” Arabian Business. 2015. Web.