Banking and Customer Relationship Management

I love to help financial institutions create a sales culture and one thing I always stress is that you can’t have a sales culture without Customer Relationship Management (CRM) tracking.

Here is what CRM expert, Alan Buhler, EVP, CoreTrac, Inc., has to say about Using Banking-Specific CRM for Performance Enhancement:

The idea of a multi-channel, banking-specific, eRelationship CRM+ sales tracking automation solution (CRM) is to help a financial institution use both technology and human resources together, to gain insight into the behavior of customers, and the value of those customers.  When it is implemented as designed, a financial institution can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues.  With that said, it is important to note that it doesn’t happen by simply buying the software and installing it.  For CRM to be truly effective the financial institution must decide what kind of customer information it is looking for and it must decide what it intends to do with that information.  For example, many financial institutions keep track of customers’ life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs.  Next, the organization must look into all of the different ways information about customers comes into the financial institution, where and how this data is stored and how it is currently used.  One bank or credit union, for instance, may interact with their customers/members in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts.  Solid CRM systems link up each of these points.  This collected data flows between operational systems and analytical systems that can help sort through the records for patterns.  Analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed.

Customer Relationship Management in Banks and Credit Unions

CRM in the banking industry is notably different from other sectors, partly because it is purely related to financial services, which has an absolute need to create trust among the people within the communities they serve. Establishing customer care support during “on” and “off” hours, providing timely financial information, creating awareness of online e-banking, delivering secure mobile banking, and meeting many other consumer expectations are required to keep your customer relationship solid and growing.

The use of CRM in banking has gained significant importance in today’s competitive environment.  It includes banking strategies focused on enhanced customer acquisition and retention. Customer relationship management goes beyond the transactional exchange and enables the financial institution to estimate the customers’ sentiments and buying intentions.  As a result, the customer can be offered appropriate products and services before he starts seeking them from your competitors. Customers are the backbone of all business activities. Using banking-specific CRM to successfully maintain and build upon the relationship you have with each prospect and customer will yield better results in customer acquisition, retention, and profitability.

Thank you, Alan, for contributing to my blog!  Readers wanting to excel in the sales and service area take note of what Alan shared.  In the banking world, we track everything that matters, without a CRM, you can’t say you do that! Customer relationship management goes hand in hand with sales and marketing, download this free article on cross-selling in our online store.

Still learning,