In the article "Transforming Financial CRM from Retention Mode to Growth Mode," the author, Darryl Pratter, discusses how the financial sector of businesses will be affected in the next year and how a solid CRM system will be the key to increasing profits. The article states that in the last year call volume has increased to financial institutions based on the complexity of the current economic situation. For organizations to keep up with this call demand, and the strain on its systems, they must find ways to speed up the process. The solution to this is a CRM system.
There are many companies that are making CRM systems specifically designed for financial companies. These systems help track client habits, i.e. where they bank, how often they bank, and how often a person call the institution. The CRM has also enabled some companies to implement IVR systems, or interactive voice response, to help customers get answers to basic questions and complete minor transactions.
Over the next few years as the economy recovers and more people begin to invest again, these banks will have to compete to win customer loyalty. These CRM systems can help to focus on what the client want and how the company can achieve these goals in the most efficient manner. All members of the company must know how to use the system, and know what goals the company is trying to work towards. The article talks about how in the past the main reason for customer satisfaction in the financial sector was to maintain clients, and how as we move forward the CRM systems will allow institutions to use customer care to generate increases in revenue.
The article also talks about how using the CRM system, call center representatives will be able to offer new products to the customer based on their profile, and past transactions. This will help the companies to increase the number of mortgages, and investments that it is able to sell. For instance, when a customer calls to ask about their saving account, a representative will be able to offer the client a Certificate of Deposit based on the current balance of the account.
The cost of these CRM systems will also be a major factor in how they are used. A company must see that they will gain more from the system than it will cost to install or upgrade. If the system reduces the call volume to its center or increase the ease of access for clients to their information, this should lead to sales and a greater profit for the institution. If they do not see a large profit gain, some smaller firms may choose to not implement the system or phase the system in over time.
I think overall the CRM systems will help financial institutions to recover and to serve their clients better. If when I, the customer, have a question and I have to wait twenty minutes on hold for a customer service agent, I will think about whether to bank with the company in the future, but if I call and the wait is minimal I will be more likely to stick with this institution. Reducing the call wait time seems to be one of the major advantages to these CRM specifically designed for the financial sector. The road to recovery for the banks may be long, but the CRMs will help to eliminate some of the obstacles in the road.
See Article:
“Transforming Financial CRM From Retention Mode to Growth Mode,” TechNewsWorld, January 19, 2010, http://www.technewsworld.com/story/69138.html (accessed January 29, 2010).
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I agree that CRM is the most effective way to deal with increased call volume at financial institutions. It is important to figure out the cost benefit analysis before implementing this system in financial firms. For the top financial companies the cost to implement these programs is not the problem. Rather, the issue will arise as to how make CRM work for a global financial firm. Finally, is it possible that a CRM strategy will reduce the frustrations of customers? This is questioned because CRM, an ERP strategy, can be complex to implement while providing numerous frustrations for employees.
ReplyDeleteEfficient and effective CRM systems are needed as the country begins to bounce back from the economic crisis. In light of the crisis, I hope that people will be smarter about where they invest and how they use their money. Hopefully, enhanced and improved CRM systems will positively impact an individual's trust within financial institutions which will hopefully improve the economic downfall which has been experienced. I especially like the idea of tailoring what is being promoted to each individual. With the CRM system, companies will be able to potentially increase their revenue and clientele by offering only what is appealing to each individual instead of wasting time on certain services that are not of interest to a client. If a client is dissatisfied or feels like he or she is wasting their time at a company, that company will lose business. Tailored service is a great idea to improve loyalty.
ReplyDeleteIn the current economical situation, the idea of investing money somewhere causes skepticism for many. The only way to get out of this situation for people to start investing their money again, which also makes it seem like this CRM system will rescue the lack of investments over the past year. To implement a system that improves customer service overall is crucial. For a customer to feel that they are being specifically tailored to, this will only benefit the bank or company in the long run. To decrease the amount of time waiting on the phone will also please the customer. Another part of the article that I think will speak out to customers is the fact that the new systems creates somewhat of a “profile” for them. If a customer is offered a new product geared towards their wants and needs, the customer is more likely to purchase it than not. I think the only way for people to remotely trust the idea of investment again, the implementation of a new CRM customer-focused system could potentially be the solution.
ReplyDeleteEven though I agree in general with the basis of the article (especially how CRMs are very beneficial) I have some problems to raise with this article. First, the investments that people make are vital to their financial health. I don't know the specifics of the targeting with the CRM, but it seems like the system toys with people's money more than would be ideal. In these times, that's not a risk that people should be making with any quantity of money. That brings me to my next point-these days, financial institutions are suffering the most, and at this point, it may not be worth the investment yet to install a CRM. More time to recover may be beneficial.
ReplyDeleteWhile I understand that smaller companies may not have the financial capabilities to implement these new CRM systems I think it is a crucial step for larger companies in their road to recovery after the financial crisis. The article states that "CRM will be a key differentiator for sucessful providers" and I believe that this is very true. After all the problems consumers have had to face over the last year I believe that customer service is the key to increasing revenues. These CRM systems will help manage the call volume and will make the company more efficient and user friendly. Additionally, I think it is a huge benefit that these systems allow a type of "user profile" to be generated so that employees can adjust the phone calls to meet the consumer's interests. These processes will give the consumers a better experience and will help to increase customer loyalty. During a time when it is very important for companies to increase their revenues these CRM systems are key to getting companies back on track.
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