OBJECTIVES OF CRM IN BANKS

CRM, the technology, along with human resources of the banks, enables the banks to analyze the behavior of customers and their value. The main areas of focus are as the name suggests: customer, relationship, and the management of relationship and the main objectives to implement CRM in the business strategy are:

To simplify marketing and sales process

To make call centers more efficient

To provide better customer service

To discover new customers and increase customer revenue

To cross sell products more effectively

  The CRM processes should fully support the basic steps of customer life cycle. The basic steps are:

      Attracting present and new customers

      Acquiring new customers

      Serving the customers

      Finally, retaining the customers

            In today's increasingly competitive environment, maximizing organic growth through sales momentum has become a priority for Banks and Financial institutions. To build this momentum banks are focusing on Customer relationship management initiatives to improve;

      Customer satisfaction and loyalty

      Customer insight/ 360º view of customer

      Speed to market for products and service

      Increase products-to-customer ratio

      Improve up sales and cross sales

      Capitalizing on New market opportunities

       

            The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business 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 .It doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information.

            In CRM projects, following data should be collected to run process engine:

1) Responses to campaigns,

2) Shipping and fulfillment dates,

3) Sales and purchase data,

4) Account information,

 5) Web registration data,

 6) Service and support records,

 7) Demographic data,

 8) Web sales data.

3.4 CRM STRATEGIES

 Customer Behavior Patterns

            For example, in the financial sector, early beneficiaries of successful CRM strategies have been the banks. These organizations use data warehousing and data mining technologies to learn from the millions of transactions and interactions with their customers, and to anticipate their needs. The patterns of customer behavior and attitude derived from this information enable the banks to effectively segment customers on pre-determined criteria.

Detailed customer data can provide answers to the following questions:

Which communication channel do they prefer?

What would be the risk of leaving the bank to go to the competition?

What is the probability the customer will buy a service or product?

            This knowledge assists financial institutions with CRM solutions in place to develop marketing programs that respond to each customer segment, support cross-selling and customer retention programs and enables the staff to understand how to maximize the value of each customer’s interaction.

            CRM applications provide functionality to enhance customer interactions. Banks known for its high level of customer service might use this characteristic as a starting point for implementing a CRM application. Another company may be very good at targeting profitable customers. Each bank should seek a niche on which to develop its CRM strategy.