Case Study 3

A Compelling Place to Buy in Action: Rabobank

Rabobank began as a cooperative in the Netherlands where farmers could pool their resources to build their collective wealth. Now a highly successful International company, Rabobank has an AAA credit rating and, in recent years has twice been awarded the title of the world's safest bank by Global Finance magazine.

Today, Rabobank maintains its cooperative culture. The bank aims to provide: the best service, value and expertise to its clients; and establish mutually beneficial relationships with customers and the communities in which they operate.

Part of Rabobank's success is attributable to its grass-roots approach to business. Managers meet with clients on their farm or in their business to gain in-depth understanding of their needs

But what makes Rabobank a compelling place to buy?

Building and maintaining client relationships is fundamental to Rabobank. In 1999, Rabobank created an Executive Development Program for Primary Producers. This initiative invites farmers to a week-long program to discuss and learn about business management with a range of industry experts and academics. This innovative program provides farmers with valuable information about how to run their business. For primary producers, Rabobank is indeed a compelling place to do business. The benefit for Rabobank is an increased reputation, customer loyalty and, in helping build the client's business, it ensures that as the farmer's profit grows, it does too for Rabobank.

Focusing on factors other than the bottom-line has proved a winning formula for Rabobank. Building strong relationships with clients and value adding to their business enables Rabobank to create long-lasting markets. It is through these value-add activities that company's can create a compelling place to do business, while avoiding price wars when markets become tough.

Committed to sustainability, Rabobank voluntarily publishes reports that outline their social and environmental impact. Rabobank's decisions consider the interests of the communities and environments in which they impact.

Rabobank proves that focusing on things that matter most to its customers creates sustained markets and ensures long-term profit.

Caring for the ecosystem often costs companies more initially, but can save money in the long run through decreased consumption in the long run. Organisations that are committed to society and the environment show their customer's that they care beyond making profits. Sustainability is another compelling reason to do business with Rabobank.