Question:
Discuss About The Problem Solving And Digital Operations?
Customer churn rate, also referred to as the customer attrition rate is the number of customers who discontinue their services from a certain organization or business within a certain period. For any business to keep on growing, the number of new customers must always exceed the churn rate. Customer churn rate is usually calculated by dividing the number of customers who leave a business to the number of new customers who join the business. Churn rate is normally expressed as a percentage (Rogers, 2014).
In this report, we are going to take a case study of Commonwealth Bank to do some data analysis on some of its data. Commonwealth Bank of Australia is a multinational bank which operates in several countries such as Fiji, New Zealand, the United Kingdom, the United States, and Asia. It offers several financial services to the people of Australia and other countries. The services offered by the bank include business and institutional banking, insurance services, superannuation, funds management, investments, share-broking services. The corporate responsibility of the bank is to excel in delivering its vision which aims at securing and enhancing the financial status of the people and other businesses (Commonwealth Bank of Australia, August 2017).
The major problem which has been affecting Commonwealth Bank is the customers’ unsatisfaction with the bank. Most customers are not satisfied with the services offered by the bank and have ended up leaving the bank, and this has raised the churn rate. However, the bank has been working extremely hard to make sure it satisfies most of its customers to reduce the churn rate of the customers.
The bank has undertaken some key metrics to make sure it satisfies most of its customers for them to remain royal. Firstly, the bank has increased the customers’ engagement in its innovations, and this has helped to increase its profits. The bank recorded an increase of 2 percent in the net profits in the 2016 financial year. The engagement of customers in its innovations and other operations has helped to increase the profits made by the bank and has also improved the customers’ satisfaction in the business. Commonwealth Bank was ranked number one in the retail customer satisfaction in all the months of the 2016 financial year (Williams, 2016).
Also, the bank has been giving some rewards and other bonuses to its customers. These rewards and bonuses have helped to improve the customers’ satisfaction, and many customers have remained to be loyal to the bank.
Another metric undertaken by the Commonwealth Bank to address the issue of customer satisfaction is giving loans to its customers at reasonably low-interest rates. The low-interest rates offered by the bank have resulted in improved customers’ satisfaction, and many customers have joined the bank which has led to an increase in the net profits margins of the bank (Koppenheffer, October 2013). (A simplified statistical table showing the rates of interests of the Commonwealth bank is shown on the next page).
Another metric which the bank has taken to improve the satisfaction of the customers is to make sure it pays all of its employees well. Paying the employees well helps to improve their motivation. They will be happy working in the bank, and therefore, offer excellent services to the customers, and this will improve the satisfaction of the customers (Commonwealth Bank, May 2016). (A graph showing the payments of various employees depending on their academics qualifications is shown on the pay-scale on the next page).
All the metrics discussed have helped to maintain a good financial status of the bank. The financial status of the bank of the year 2016 is shown on the next page.
We have various methods which can be used to analyze the data of the Commonwealth Bank. The major methods used in the analysis of the data include the use of some special computer software such as Microsoft Excel, SPSS, and other special statistical software.
Other methods which can be used in the data analysis include the use of some special mathematical software such as Microsoft Mathematics or other software such as SAP. We have many other methods and different software which are used in data analysis and the choice of the method and the software to use depends on the complexity, the size, and the type of data to be analyzed.
An example of analysis of using Microsoft Excel data analysis method to solve the minimum, the maximum, the total and the average salaries of the employees using the Commonwealth pay-scale data in the previous page.
Commonwealth Bank has many internal and external stakeholders. The main internal stakeholders of the bank include the management team, the investors, and the employees of the bank. Tthe external stakeholders of the bank include the customers within and outside of Australia, the government of Australia, some unions within Australia, and some other organizations within and out of Australia who has worked closely with the bank (tutor2u, 2017).
For us to come with a good design of a system which could be used to present insights to the stakeholders of the Commonwealth Bank, we need to come up with a stakeholder analysis plan. This is the plan which gives the full analysis of the stakeholders. It considers the stakeholders’ interests, the capabilities of the stakeholders to oppose reforms or accommodate them, and the contributions of the stakeholders in formulating and implementing certain policies in the bank.
We have four major attributes of the stakeholders which are considered before designing the system. These are the stakeholders’ positions in the bank, the powers or the influences of the stakeholders, the levels of the interests of the stakeholders, and the groups or coalitions where the stakeholders belong or where they can be associated with. These attributes define the capabilities of the stakeholders in the formulation and implementation of various policies of the bank (Boutelle, 2004). These attributes should be considered for us to understand the different roles of different stakeholders in the bank.
A tabular format can be used to elaborate the contributions of various stakeholders of the Commonwealth Bank.
A sample table which can be used to show the contributions of various stakeholders in Commonwealth Bank is shown below.
|
S/N |
THE STAKEHOLDER’S NAME |
THE POSITION OF THE STAKEHOLDER |
THE NEW POLICIES SUGGESTED BY THE STAKEHOLDER |
THE GOALS OF THE NEW POLICIES |
THE INTERESTS OF THE STAKEHOLDER |
THE INFLUENCE LEVEL OF THE STAKEHOLDER |
|
1 |
||||||
|
2 |
||||||
|
3 |
||||||
|
4 |
||||||
|
5 |
The table given can be used to discuss the contributions of various stakeholders in the Commonwealth Bank. It is good to note that the contributions of the stakeholders highly dependent on their positions, power, interests, and influence in the bank. The CEO is the most powerful stakeholder in the organization.
The benefits of Commonwealth Bank
The bank offers competitive salaries and other awards to its employees.
The bank recognizes its long-serving employees by celebrating their anniversaries of one year, five years, and twenty years.
The bank offers high-quality banking services, investments, and other services to its employees and the other customers.
The bank has a good employee share plan. The bank gives its employees some shares every year. The employees receive the shares corresponding to their performance, and we may have some employees receiving up to $1,000 annually.
The bank offers salary sacrifice shares to its employees. The employees of Commonwealth Bank can purchase shares worth up to $5,000 annually, and the shares are sold on a pre-tax basis to the employees.
The bank has many other benefits to its employees, stakeholders, and all the people associated with the bank (The Commonwealth Bank of Australia, 2017).
The consequences of the Commonwealth Bank
The bank has contributed a great part to the observed climate change which has resulted in global warming in Australia. However, the bank is working hard to mitigate the effects which lead to climate change (Lyengar, August 2017).
The market risks which such as the low-interest rates in the world market has resulted in some losses to the investors. It is always recommended to monitor the relevant interest rates in the market before investing in the Commonwealth Bank (Commonwealth Bank of Australia, March 2014).
We have various factors which influence the different decisions made by different students. These factors include the parental and the personal factors, the social, economic and the environmental factors, the education level and the different reasoning skills of the student.
In this report, the personal factors, the education level, and the different reasoning skills of each student play a great role in influencing the different decisions made by different students in doing the report (Genise, April 2014).
There are many challenges which have been faced in the implementation of this report. These challenges include the following:
The sources of the required data have been a great problem. Most of the Commonwealth Bank’s data is restricted from visitors’ access. Some sources of the bank’s data are private and require some login credentials which the students don’t have. Other sources of data require being purchased for access.
Some of the available data is very complicated and poses a great challenge for full analysis. The full interpretation and analysis of the data require some special software which may be challenging to acquire and use successfully.
We have other challenges which have been faced in the implementation of the solutions of these report. However, I have worked to overcome those challenges to deliver a good report.
Data analytics is the process of cleansing, inspecting, transforming, and modeling of data with the aims of discovering some useful information and suggesting some useful conclusions which help in the process of decision making. Data analytics is very necessary and helps to improve the performance of organizations (Beal, 2016).
In this assessment, we have learned several concepts of data analytics. Firstly, in the calculation of churn rate, we learned the formula for calculating the churn rate. Churn rate is normally used to analyze the data of the customers leaving the bank as compared to the number of new customers joining the bank. We use the concept of data analytics to calculate the churn rates of different organizations.
In this assessment, we have learned some data analytics method. We have learned how to use Microsoft Excel do some analysis on the data of Commonwealth bank.
We also learn the different modes of tabulations of different types of data. We have also used some graphs to tabulate some statistical data of the bank which enhance our data analytics skills.
One of the major challenges and obstacles in the assessment was getting the sources of the required data. However, extensive research has helped to get the required data.
The complexity of some data has also been a serious challenge. I tried to simplify the obtained data reduce its complexity for a better analysis.
The problem of unreferenced sources has also been a challenge in the research. Some sources are not references properly, and you can’t tell whether the sources are credible or not. I have tried to avoid the problem by avoiding the unreferenced sources and using the referenced credible sources only.
Conclusion
In the report, we have discussed the operation of the Commonwealth Bank in details. We have also discussed the churn rate of the business and some factors which affect the churn rate. We have also analyzed some data from the Commonwealth Bank, and this analysis has helped us to understand the operation of the Commonwealth Bank well. This has also helped to improve our data analytics skills. We have also discussed some benefits and consequences of the bank which have informed us more about the bank.
In our report, we have encountered various challenges which tried to limit the research on the Commonwealth Bank, but we have handled the challenges accordingly to come up with a good report. In conclusion, we can say that taking the case study of the Commonwealth Bank to do some data analysis helps to improve our general understanding in data analysis, problems solving, and digital operations.
References
Agresti, A., 2014. Categorical Data Analysis. Hoboken: Wiley.
Anon., 2008. Commonwealth Bank. Sydney: Commonwealth Bank of Australia.
Beal, V., 2016. Big Data Analytics, s.l.: s.n.
Boutelle, J., 2004. Understanding Organizational Stakeholders for Design Success, s.l.: s.n.
Commonwealth Bank of Australia, August 2017. 2016 Corporate Responsibility Report, s.l.: s.n.
Commonwealth Bank of Australia, March 2014. Security Investments. Commonwealth Bank, pp. 6-7.
Commonwealth Bank, May 2016. Interest Rate Table. [Online]
Available at: https://www.commbank.co.id/upublic/mod_home/default_content.aspx?code=interest_rate
[Accessed 2017].
Dillard, J., 2016. 5 Most Important Methods For Statistical Data Analysis. [Online]
Available at: https://www.bigskyassociates.com/blog/bid/356764/5-Most-Important-Methods-For-Statistical-Data-Analysis
Genise, M., April 2014. Factors that Affect the Decision-Making Process of African American Students, Minnesota: Minnesota State University.
Koppenheffer, D., October 2013. Choosing a Bank Stock: 3 Key Metrics, s.l.: s.n.
Lyengar, R., August 2017. Australia’s top bank sued over climate change risks, New Delhi: s.n.
Meneely, A., 2012. Interactive churn metrics. ACM SIGSOFT Software Engineering Notes, 37(6).
Rogers, B., 2014. How to Calculate Customer Churn and Revenue Churn. [Online]
Available at: https://www.evergage.com/blog/how-calculate-customer-churn-and-revenue-churn/
[Accessed 15 June 2014].
The Commonwealth Bank of Australia, 2017. Employment Benefits of a CommBank Career – CommBank Careers. [Online]
Available at: https://www.commbank.com.au/about-us/careers/our-benefits.html
tutor2u, 2017. Stakeholders(Introduction). [Online]
Available at: https://www.tutor2u.net/business/reference/stakeholders-introduction
Williams, A., 2016. CBA full-year results show strength in customer satisfaction. [Online]
Available at: https://www.cmo.com.au/article/604871/cba-full-year-results-show-strength-customer-satisfaction/
[Accessed 10 08 2017].
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