A few thoughts about the ROI of banking-specific CRM/SFA

6 July, 2012 (19:25) | Uncategorized | By: admin

First, let me state the obvious, banking-specific CRM/SFA will tie together all your leads, sales, marketing, and client services for a complete 360-degree view of your relationship with existing clients and potential new client acquisitions. However, for this to be effective, the software must be utilized. The more the software is utilized throughout the FI, the greater the ROI. With that said, the single greatest catalyst for ROI of your CRM/SFA solution will rest on the shoulders of Senior Management expectations that the system will be used and enforced. This is closely followed by the need to provide clear communication of how the software will benefit the employees and your customers/members, as well as some kind of incentive tracking built into the implementation. From a value standpoint, a fundamental approach to determining ROI is to baseline your current financial performance in Retention, Acquisition, Cost to Serve, and Wallet-Share. From the baseline you can calculate the uplifts needed to each of these 4 main metrics. In addition, some of the ways you may “dollarize” the benefits of banking-specific CRM/SFA are:

1. Measure your client Life-Time Value (LTV). It should start improving quickly due to greater client experiences.
2. Estimate your cost savings (e.g. Client Acquisition Cost, Client Retention Cost, etc.)
3. Track changes in number of prospects that get into your pipeline, their conversion rate, and sales cycle timeline.

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