Topic 7 CRM in Banking

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 31

CUSTOMER RELATION MANAGEMENT

Definition of Customer Relationship


Management
 Customer relationship management (CRM) is
an approach to managing a company’s
interaction with current and future customers
.
 It involves using technology to organize,

automate, and synchronize business


processes—principally Sales activities, but
also those for marketing, customer service
and technical support.
Background of CRM

 Origins of the term CRM can be traced back


to the 90’s of the 20th century when the
concept of marketing changed from
transactional to relational. Since the
beginning, many definitions have appeared
with different meaning and sometimes even
the meaning of the acronym CRM varied from
Customer relationship management to
Customer relationship marketing (Buttle,
2009,).
CRM TARGETS
 Marketing - campaign manager;
 Sales force management;
 Customer Service
 Business analytics;
 360-degree view of the customer;
 Kenya and International Business;
 Single view of the customer across countries;
 Service audit trail
 Loyalty program;
 Targeted Campaigns;
 Detailed customer segmentation .and corresponding products &
services;
 Reports (Productivity, Performance);
 Vendor management (SLA management);
 Single access point on systems -better password management.
Objctive of CRM
 Enable the company to identify, contact attract
and acquire new customers:
 Obtains a better understanding of the
customers- their wants and needs:
 Defines the appropriate product and service
offering and match it to the unique needs of
the customer
 Manages and optimizes company’s sales cycle
 Identifies Cross selling and up selling
opportunities:
Features of CRM

 Customer’s Needs
 Customers Response
 Customer Satisfaction
 Customer Loyalty
 Customer Retention
 Customer Complaints
 Customer Service
Relationship Marketing

 Relationship marketing is a facet of customer


relationship management (CRM) that focuses on
customer loyalty and long-term customer
engagement rather than shorter-term goals like
customer acquisition and individual sales.
 The goal of relationship marketing (or
customer relationship marketing) is to create
strong, even emotional, customer connections
to a brand that can lead to ongoing business,
free word-of-mouth promotion and information
from customers that can generate leads
Theories Of Relationship Marketing

 The commitment-trust theory of relationship


marketing
 This theory states that there are two fundamental
factors, trust and commitment, that must exist for a
relationship to be successful. Relationship
marketing involves forming bonds with customers
by meeting their needs and honoring commitments.
Rather than chasing short-term profits, businesses
following the principles of relationship marketing
forge long-lasting bonds with their customers. As a
result, customers trust these businesses, and the
mutual loyalty helps both parties fulfill their needs.
cont
 Trust
Trust is the confidence both parties in the
relationship have that the other party won’t do
something harmful or risky. Businesses develop
trust by standing behind their promises.
 Commitment

Commitment involves a long-term desire to


maintain a valued partnership, according to
Brink and Berndt. That desire causes the
business to continually invest in developing and
maintaining relationships with its customers
CRM Process- Managing the Customer life Cycle

 In customer relationship management (CRM),


customer life cycle is a term used to describe
the progression of steps a customer goes
through when considering, purchasing, using,
and maintaining loyalty to a product or
service. This process includes
 Acquiring new customers
 Enhancing profitability of existing customers
 Retaining profitable customers for life
Key Success Factors For CRM

 Human resources management


 Management and leadership
 Change Management
 Information Technology (IT)
 Service quality
 Customer Satisfaction
CRM APPROACH
 It is customer rather than product focused
 It requires changes in processes, systems and
culture
 It embraces the ‘front-office’ functions of
sales, marketing and customer service as well
as back-office operations and new product
development
 It embraces all channels and media from the
Internet to field sales
 It embraces sales partners both up and down
the supply chain
TYPES OF CRM
 Operational CRM
It’s made up of 3 main components:
Sales force automation works with all stages in the
sales cycle, from initially entering contact
information to converting a prospective client into
an actual client.
Marketing Automation focuses on easing the overall
marketing process to make it more effective and
efficient.
Service automation is the part of the CRM system
that focuses on direct customer service technology.
Cont…
 Analytical CRM
The role of analytical CRM systems is to analyze
customer data collected through multiple
sources, and present it so that business
managers can make more informed decisions.
 Collaborative CRM

The third primary aim of CRM systems is to


incorporate external stakeholders such as
suppliers, vendors, and distributors, and share
customer information across organizations.
Examples of functions supported by
an ECRM system
HOW TO IMPROVE CRM WITHIN A FIRM

 Analyzing the Information


Based on this information, managers must
understand the different reasons for these types of
relationships, and provide the customer with what
they are looking for. Companies can collect this
information by using surveys, interviews, and more
with current customers. It is very important to
analyze all of this information to determine which
relationships prove the most valuable. By managing
different portfolios for different segments of the
customer base, the firm can achieve strategic goals.
 Employee Training
Many firms have also implemented training
programs to teach employees how to recognize and
effectively create strong customer-brand
relationships.
 Reviewing Processes and Designing New Processes

Companies should define their business goals and


evaluate their CRM processes to improve and
expand to fit their needs. Applying new
technologies is also helpful because using CRM
systems requires changes in infrastructure of the
organization as well as deployment of new
technologies such as business rules, databases and
Information technology.
IMPACT OF CRM ON CUSTOMER SATISFACTION

 Firms are able to customize their offerings for


each customer to suit the individual tastes.
 Enable firms to provide timely, accurate

processing of customer orders and requests


and the ongoing management of customer
accounts
 Help firms manage customer relationships

more effectively across the stages of


relationship initiation, maintenance, and
termination.
HOW CRMS MANAGE DEMAND

 As a business grows, so does the time and


complexity of managing customer relationships.
 A CRM will help the printer save time by
aggregating necessary information that will help
them service the existing customer and acquire
new accounts.
 Customer relationship management tools enable
businesses to take care of routine tasks that
would otherwise require manual work. They can
also be expanded to work with other systems that
run supply chains, production audits, and manage
delivery efficiency.
Three Things Every CRM Should Do
Well
 Gathering Customer Data
A good CRM tool collects meaningful data about
customers and develops strategies to use that data to
increase sales.
 Warehousing Data

A good CRM system will aggregate customer data from


multiple locations and aggregates it into a reliable
repository ensuring the information will be there when it’s
required.
 Delivering Usable Data

Great CRM systems take this information and make it


available on demand, customized to the needs of sales
and other departments.
THE BENEFITS OF A CRM SYSTEM

 Maintain, improve, and build a record of customer


relationships.
 Benefit businesses by expanding their customer
base and increasing sales based on analytics of
aggregated customer data.
 Enable you to analyze your current sales tactics to
determine if they’re on target or falling short of
your company goals.
 Helps you keeping your customers informed
through automated e–mails.
 Encourage collaboration by allowing teams to work
together to improve company processes.
Cont..
 Reduced costs because the right things are
being done quickly and efficiently
 Increased customer satisfaction because their

needs are being met


 Heightened focus on maximization of

opportunities
 Greater access to a source of market and

competitor information
 Notification of poor operational processes
 Long–term relationships and sustainability
Cont..
 Increased employee motivation and
satisfaction
 Overall smoother functioning within the

company
 Improved image of your company
 Increase in customer satisfaction
 Improved communications within the

company
 Increase the customer service efficiency
1998 Insight Technology Group
research findings
Challenges of Implementing CRM

 The challenges faced by many of the banks


whilst implementing CRM can be summarized
as the followings:
 Getting management sponsorship
 Quality of customer data
 Alignment issue (Alignment of people and
processes)
 Lack of skilled people
 Determining the right time for customer needs
 Using customer data more intelligently
 Incorporating customer data and customer
preferences to the customer database
 Using right technologies
 Real time data cross all customer channels
 Having 360- degree view of customers

(Single view of customers


CRM IN BANKING SECTOR
Aids the bank in fulfilling one of her Key Strategic pillar-the
customer focus pillar:
 Provides a seamless, unified customer experience for all

customer interactions regardless of the internal department


they are dealing with.
 Transforms customer data into actionable information by

providing the right information to the right person at the right


time.
 Extends customer understanding throughout the bank thus

enabling all functional areas to make informed, customer-based


decisions.
 Provides an easy to use platform for customer operational and

management reporting.
 Translates customer information into opportunities for cross

selling and up selling for business growth.


EFFECTS OF CRM IMPLEMENTATION IN THE BANKS
 360 degree view of the customer: All the activities
specific to a customer be it marketing campaign
emails, phone calls, follow-ups, meetings, service
requests, responses and updates all of these
activities gets tagged against that particular
customer providing a single view
 Customer service and support: Customer
complaints, self-service, knowledge
management, case management, live chat and
surveys have been taken care of
 Sales Force automation: Opportunity
management workflow automation, territory
management, sales forecasting, pipeline analysis
has become possible
 Marketing automation:
◦ Campaign Creation: Lead management, email and
event marketing, web analytics, and campaign
management including, use of social media to
launch campaigns has become live.
◦ Target Marketing List: Support data cleansing to
define simple rules for duplicate detection is
being done
◦ Campaign Execution: Campaigns execution over
multiple channels, such as phone, letter, email,
fax, advertising and appointments for sales users
to follow up or even road show events has been
kicked off though taken off slowly.
◦ Campaign responses: Automatic conversion of
Campaign responses into a lead or opportunity, associated
with the relevant customer record is being tracked.
 Customer interactions tracking: Document
conversations held by phone – in person, through
email, chats, sms. This can either be manually, or
automated with phone and email systems
integrations. The Solution is able to track customer’s
interactions on Facebook, twitter and other social
platforms
 Reporting: Tracking of performance and
productivity based on activities logged on CRM e.g.
how many new contacts, revenue added on a
particular day. The solution has aided in forecasting
e.g. next quarter sales pipeline
 Integration: Seamless integration to the bank’s core
banking and other systems via Enterprise Service Bus
which is envisioned after the completion of the ESB
project scheduled to be completed by end of 2016.
CONCLUSION
 The Bank is on the leading edge in adoption of the
CRM and this may be an indicator on the
turnaround of the organization from a loss making
entity to a profitable one in the recent past.
 CRMs help businesses manage the demands of
business, which center around supporting the
needs of the customer. Systems are as good as the
people using them hence a good E-CRM is as good
as the people using them. This therefore means,
the organization need to invest in equal measure
on the employees’ development as they invest in
systems. Failure to do so may lead to slow
adoption of such systems and may cost its
competitiveness despite the investment therein.

You might also like