INDIVIDUAL PROJECT 1
When Initial Union Corp. of Charlotte now, North Carolina, and Wachovia Corp. of Winston-Salem, North Carolina, merged in 2001, they brought together two divergent ways to banking. Wachovia had a high quality reputation in customer service. By Wachovia twigs, customers interacted with financial institution staff for some transactions. Wachovia monitored the caliber of its customer satisfaction by sending " puzzle shoppersвЂќ to evaluate the services skills of its personnel. The bank paid employees that rated very well and their department managers. Within a 1999 review of the twenty largest banking institutions in the United States simply by Consumer Reviews, Wachovia finished fourth in customer service. Inside the same review, First Union ranked previous in customer service. First Union branches were lean offering machines. Personnel encouraged consumers to carry out their business at ATMs or mobile phone kiosks rather than visiting tellers. First Union rewarded their employees with commissions and incentives pertaining to bringing in new business, such as mastercard accounts or loans. This approach brought each of First Union's two, 200 branches an average of $2 million in loans per quarter. Each of Wachovia's 700 limbs produced normal loan sales of less than 50 % a million dollars every quarter. For every its advertising success, Initial Union was struggling. Customer satisfaction was thus low the fact that bank experienced a customer attrition rate of 20 percent in the first one fourth of 99. At the same time, staff were disappointed, with financial institution tellers turning over at an interest rate of 49 percent. The merger shown the new business with the opportunity to combine the winning product sales tactics of First Union with the outstanding customer service of Wachovia. The merged financial institution shrewdly opted to use the Wachovia term and started restructuring it is employee benefits and bonuses programs to optimize equally product sales and customer service. Prior to the merger, 1st...