Five Benefits of CRM for Financial Institutions
By Alan Buhler, CoreTrac Executive Vice President
Focus on the Customer – CRM manages to place the customer at the focal point of the organization in order to cater to his/her needs, satisfy them, and thus maximize the profits of the organization. Banking CRM helps bankers understand the needs of the customer and integrates it with people, technology, resources and business processes. It focuses on the data available in the organization and uses it to improve the relationship with customers. Banking CRM uses information and analytical tools to secure the customer focus.
Improved Profitability – CRM enables financial institutions to give employees better training that helps them face customers more easily. It achieves better infrastructure and ultimately contributes to better overall performance. The byproducts of banking CRM are customer acquisition, retention and profitability. Financial institutions that don’t implement CRM will undoubtedly find themselves with lesser profitability coupled with a sharp decline in the number of customers.
Satisfied Customers – It is important to make a customer feel as if he/she is the only one that matters—this will go a long way in satisfying and retaining them. Financial institutions need a return on investment and it has been proven that an increase in customer satisfaction more than contributes a fair share to ROI. The main value of banking CRM lies in satisfaction and increased retention of customers.
Centralized Information – CRM manages to clearly integrate people, processes and technology. Banking CRM provides financial institutions with a holistic view of all banking relationships and customer information, and stores it in a single data warehouse where it can be studied later.
Increased Share-of-Wallet – Customer relationships are becoming even more important for banks as market conditions get harder. Competition is increasing, margins are eroding, customers are becoming more demanding and the life-cycles of products and services are shortening dramatically. All these forces make it necessary for banks to intensify the relationship with their customers and offer them the services they need via the channels they prefer. Banking CRM permits financial institutions to leverage information from their databases to achieve customer retention and to cross-sell new products and services to existing customers. Financial institutions that implement CRM make better relationships with their customers, achieve loyal customers and a substantial payback, increased revenue, and reduced cost.