Customer Relationship Management: A Solution that Brings Benefits to Banking
What is Customer relationship management? Is about the customer or the software? The answer it’s both.
Customer relationship management can be defined as the combination of practices, strategies, and technologies that banks use to manage and analyze customer interactions.
Effective customer relationship management (CRM) is vital to a bank’s growth and profitability. With constant advances in technology and increased competition, more and more banks are looking to adopt a strategic approach to CRM while taking advantage of the benefits that follow.
Benefits of a CRM for Financial Institutions:
1. Personalize Customer Interactions - Having access to customer information like transaction history or notes from their last interaction will help customer service representatives provide a more engaging experience. It’s nothing worse than speaking with a customer who must inform you that they’ve already spoke with your coworker.
2. Establish a needs-based customer engagement model - Proper customer segmentation can lead you to meaningful discussions with customers using their preferred method of communication as noted in the CRM solution. Keep track of customer goals and anticipate their needs so you’re always their delivering the right solutions at the right time.
3. Increase Productivity - Eliminate repetitive administrative task by keeping track of customer engagements. With the right software solution, bankers can access the insights needed to effectively engage their customers from any device, from anywhere, at any time.
4. Increase Sales - Nurture and convert leads to deals before your competition has a chance.
5. Customer Data in a Central Location - With customer data in one database, bankers can prioritize building strong valuable relationships instead of wasting time gathering data from disparate systems.
6. Increase Collaboration - Work with cross-functional teams to identify the next best product for customers. This level of internal collaboration will not only improve your customer’s experience, but it will ultimately lead to increase product profitability.
7. Retain and Gain - With the right CRM solution you will be able to retain existing and acquire new customer relationships. A good CRM solution will equip you with the tools to better service your customer. While offering competitive products and convenient banking options are important to customers when choosing the right bank, providing an optimal customer experience remains the primary factor in how customers value their banking relationship. Therefore selecting a CRM with an automated workflow that can be used to create, assign, and track servicing tickets is extremely important. Customers want to feel that you care, and having a CRM solution with the tools you need to turn those caring feelings into action are key to the success of your investment.
Adopting a CRM strategy is becoming less of an option for banks and more of a necessity. A good CRM solution is essential to proactively servicing customers and leveraging the benefits. To compete, banks must be able to anticipate the needs of their customers and act on them quickly. Gone are the days where it was ok to leave a note on your co-workers’ desk. Adopting an effective strategy to help you better manage customer relationships is more critical than ever before. Customers are in the driver seat with full control of their destination, and they are ready to reroute at any given moment. Do you want to be the destination? The choice is yours, choose wisely and start developing your CRM strategy today.
Posted on Monday, June 21, 2021 at 9:45 AM
by Thelma Freeman
Thelma Freeman is a graduate of the University of Memphis and has her MBA from Texas Southern University. With more than 18 years of experience in the banking industry, Freeman is a product management professional with a focus on improving customer experience with an expertise in Cash Management Services, Bank Operations, and Risk Management.