With the advent of globalization, the banking sector across the globe has attained the status of being one of the most competitive industries. Nowadays, it is a common phenomenon to view a series of US and Europe based players opening their branches across Asia. Everybody knows that a client have multiple accounts spread across different banks which makes it important for a player to retain and also bag maximum wallet share apart from successfully acquiring new clients at the same time.
The prime strategy of a CRM is to make a company client centric with the sole motive to raise the market hare and also revenue in the most effective manner possible. CRM in the banking sector in today’s times is an essential tool for surviving the cut throat competition.
With thousands of clients and millions of prospects, a bank definitely requires a ‘smart’ strategy along with an efficient system to execute the strategy. The strategy will be dependent on the essential strengths and the particular segment of the target market. Recent statistics revealed that a mere 5% rise in client retention has potential to raise profitability by almost 35% in the banking segment, 50% in insurance and brokerage, etc.
Why banks need a CRM tool
- To make sense of the present client database. It means segmenting the clients, grouping them on the basis of different parameters such as relationships, age group, profitability, etc. It also proves beneficial in identifying the loss making clients. After you know this, it helps your sales and service team to target and tap the right clients easily.
- Infrastructure management for maintaining large database, optimizing it and also mine it. Also, offering 360 degree view of the clients to the sales and service team. It is believed that scaling and keeping a tab of the database with the growth with time emerges as a big task.
- Breaking the silos within the company itself. There are different departments such as current accounts, savings accounts, credit card, term deposits, loans, etc. All these departments have their own list of processes, sales and service cycle. It is a known fact that they do not enjoy 360 degree view of the clients.
- To create or develop an efficient target list for the marketing campaigns. It has been noticed that the banks usually have fragmented parts of the client details in different systems. This makes it difficult to locate the actual potential of a client, other information accuracy such as email addresses, mobile numbers, real portfolio, etc.
- There are different sales and service processes for varied products with data available in many systems. Hence, it becomes difficult for the front-end sales and services teams to close a client request or even cross-sell opportunity in the first call itself. They have to go through various systems and collect the necessary details from different people for closing a deal. This automatically leads to the rise in cost for client service and sales.
- In most cases, the senior management does not have real time view of the ground level status for developing efficient strategies and also measuring ROI.
- With the increase in regulations and compliance rules, the operation cost goes up significantly. It is believed that improved regulations meant for helping the system becomes a cost overhead.
Now, let us take a close look at the different steps for the effective implementation of the CRM in banking sector.
- Creating an actionable strategy for increasing the revenue from the present clients and also acquire new customers at the same time. It comprises of optimizing the present processes for sales and services of different products across different departments/teams.
-Creating processes and also numerous practices to successfully execute a strategy.
-Looking for the right tools so that the CRM execution occurs swiftly.
-A single team who has taken up the practice led approach for solving all the problems such as execution or formulation of strategy.
Conclusion
A CRM focuses on luring, maintaining and also strengthening relationship with clients in multi service organizations. It helps the marketer to judge the client sentiments and buying intentions so that they are offered the ‘right’ products and services. Clients are considered as the backbone of any business activities and maintaining good relations with them helps offer good results.
The article is also available at http://www.basearticles.com/Article/2762/CRM-in-Banking-sector--changing-times-and-needs.html
With thousands of clients and millions of prospects, a bank definitely requires a ‘smart’ strategy along with an efficient system to execute the strategy. The strategy will be dependent on the essential strengths and the particular segment of the target market. Recent statistics revealed that a mere 5% rise in client retention has potential to raise profitability by almost 35% in the banking segment, 50% in insurance and brokerage, etc.
Why banks need a CRM tool
- To make sense of the present client database. It means segmenting the clients, grouping them on the basis of different parameters such as relationships, age group, profitability, etc. It also proves beneficial in identifying the loss making clients. After you know this, it helps your sales and service team to target and tap the right clients easily.
- Infrastructure management for maintaining large database, optimizing it and also mine it. Also, offering 360 degree view of the clients to the sales and service team. It is believed that scaling and keeping a tab of the database with the growth with time emerges as a big task.
- Breaking the silos within the company itself. There are different departments such as current accounts, savings accounts, credit card, term deposits, loans, etc. All these departments have their own list of processes, sales and service cycle. It is a known fact that they do not enjoy 360 degree view of the clients.
- To create or develop an efficient target list for the marketing campaigns. It has been noticed that the banks usually have fragmented parts of the client details in different systems. This makes it difficult to locate the actual potential of a client, other information accuracy such as email addresses, mobile numbers, real portfolio, etc.
- There are different sales and service processes for varied products with data available in many systems. Hence, it becomes difficult for the front-end sales and services teams to close a client request or even cross-sell opportunity in the first call itself. They have to go through various systems and collect the necessary details from different people for closing a deal. This automatically leads to the rise in cost for client service and sales.
- In most cases, the senior management does not have real time view of the ground level status for developing efficient strategies and also measuring ROI.
- With the increase in regulations and compliance rules, the operation cost goes up significantly. It is believed that improved regulations meant for helping the system becomes a cost overhead.
Now, let us take a close look at the different steps for the effective implementation of the CRM in banking sector.
- Creating an actionable strategy for increasing the revenue from the present clients and also acquire new customers at the same time. It comprises of optimizing the present processes for sales and services of different products across different departments/teams.
-Creating processes and also numerous practices to successfully execute a strategy.
-Looking for the right tools so that the CRM execution occurs swiftly.
-A single team who has taken up the practice led approach for solving all the problems such as execution or formulation of strategy.
Conclusion
A CRM focuses on luring, maintaining and also strengthening relationship with clients in multi service organizations. It helps the marketer to judge the client sentiments and buying intentions so that they are offered the ‘right’ products and services. Clients are considered as the backbone of any business activities and maintaining good relations with them helps offer good results.
The article is also available at http://www.basearticles.com/Article/2762/CRM-in-Banking-sector--changing-times-and-needs.html
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