The provision of financial services in retailers' outlets: a case-study of relationship marketing between a retailer and a bank through a co-branded credit card

The increasing level of competition in the Italian grocery market is leading major retailers to widen their product and service offer, in order to achieve differentiation and customer loyalty. Amongst the products that retailers are adding to their basic range, financial services are acquiring increasing importance, even if it is only very recently Italian retailing firms have started offering financial services in their outlets. The paper describes a case-study of co-operation between a grocery retailer, Conad, and a bank, Banca Antonveneta, with regard to the issue of a credit card branded by the former, “Carta Insieme Più Conad”. The results both firms have achieved in running the credit card together bear witness to the evolution of the relationship from a transactional to a relationship marketing approach. In fact, the bank/retailer-client relationship, initially limited to a single transaction (co-branding), is now extended to the entire range of banking needs of the retailer. This was revealed through interviews with both parties, where relationship variables (cultural similarities; mutual benefits; goals compatibility; reciprocity; trust; confidence; commitment; etc.) emerge as crucial. As a result, the paper outlines how the provision of financial services in the retailer's outlets is leading Conad to gain positive results not only in terms of strong customer loyalty and profitability, but also a closer relationship with the banker partner able to optimise the overall retailer’s financial management.