Commerce Bank's service delivery system prior to implementing its Retailtainment program focused on providing excellent customer service. Key aspects included its "10 minutes or less" rule, friendly service in branches to attract customers rather than pushing them online, and principles like saying yes to customers and making each feel special. The Retailtainment program added playful elements like costumes, decorated cubicles, free coffee and newspapers, and phones on ATMs to improve the service experience. While it helped meet goals initially by differentiating Commerce Bank, the strategies started being copied by competitors. The financial statements showed support for the strategy through higher interest income growth and net income compared to industry averages, though Commerce Bank had a lower loan to deposit ratio and

1. Case Presentation
on
Commerce Bank
Group Representative: Shyam Sundar Gour
Indian Institute of Management Calcutta (IIMC)
EPSM 08
Speak:+919351961181

2. Commerce Bank’s service delivery system prior to Retailtainment
Introduction: founded in 1973, 10minutes rule, friendly service, Business Model: Giving the best of service
channel experience, Attracting customer to branches versus industry pushing them into online, average
footprints 40000 Per month, lower deposit rates, 50% consumer business,
“Wow”
SMART Principles :Say yes to customers, Make each customer feel special, Keep Customer Promises, Think like
the customer,Wow Awards.
• Hallowean Costumes
• Decorated Cubicles
• Changing the perspective from Branches to Stores
• Comparison in operational excellence with retailers such as Star bucks.
• Free coffee and newspapers to customers.
• Phones added to Commerce ATM Machines.
• Penny arcades.

3. How well does the company’s operations design support its competitive position?
• Positioned as: “America’s most convenient bank.”
• Working with Wowing customers philosophy
• When it rained the bank employees often escorted the customers to the care with umbrella.
• Initiative of opening up the bank on Sunday to communicate the message “I am always
there”.
• “Kill the stupid rule programme”.

4. What decisions do you find critical to the Bank’s success?
• Building Trust on the brand.
• Exceeding service expectations
• Consistency in the Interiors, Exterior, and service across geographies.
• Location.
• Innovation- Penny arcades
• Manpower: Local experienced talents, Retention, Raving Enthusiasts Employees,
Rewards on extraordinary service delivery.
• Playful environment.
• Commerce Vans.
• Dress for call center executives.

5. What was the motivation for the Retailtainment program? How well did Retailtainment meet
these goals? How if at all would you modify the program?
Retailtainment:
Objective: To improve the service experience
Need: Competitors started copying the Commerce bank’s service models
-Jugglers
-free hot dogs
-guitar player
-Employee on roller blades.
Suggestions: Centralized Retailtainment.

6. What would you advise as the competitive response to commerce bank’s market entry?
“Reducing the waiting time into branches along with
extraordinary services.”

7. Briefly look at the financial statements for Commerce bank and the industry (exhibit 1 -4). Do you
see support, or cause for concern, of the bank’s strategy in the financial statements?
Support
-Total Interest Income grown by 12% YoY in 2001 for commerce bank versus decline in industry.
-2x Net income from 1998 to 2001 versus almost stagnant net income in the industry.
-37% Growth in deposits versus 2% for Industry...
Concern
-Loan to deposit ratio for commerce bank was less
-High expense ration for commerce bank.

8. Thanks