Customer Relationship Management Strategies in Financial Services Achieving high performance and profiting from innovations in CRM Financial Services Management Report
The contrasts between transaction and relationship marketing Transaction marketing Focus on single sales Emphasis on product features Short timescales Relationship marketing Focus on customer retention and customer loyalty Emphasis upon product benefits that are meaningful to the customer Long timescales that recognize short-term costs may be higher but so will long term profits Emphasis upon higher levels of service that are possibly tailored to the individual customer High customer commitment High customer contact with each contact being used to gain information to build the relationship The entire organization shares a commitment to
Little emphasis on customer retention
Limited customer commitment Moderate customer contact
Quality is the concern of production and no-one else
Source: CRM Strategies in Financial Services
“There are sound financial reasons for the growing popularity of relationship marketing: research has shown that the cost of attracting a new customer is estimated to be five times the cost of keeping a current customer happy...”
Create successful CRM strategies to improve customer satisfaction and loyalty using this report’s examination of effective techniques for identification of potential switchers, the key causal factors of defection and which customers are most profitably retained...
Business Intelligence for the Financial Services Industry
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Examining the Key Issues
Reasons for customer preference for face-to-face contact
Personal/one-to-one contact Know who I am dealing with Like to see things in black and white Need advice Trust/advice Good relationship with current provider Not treated like a number Don't like the phone 0% 10% 20% 30% 40% 50% 60% 70% 80%
• Price competition. Low rate deals are driving switching contributing to reduced profits for mortgage lenders. This report suggests to how lenders can offer incentives for customer retention whilst avoiding price discounts. • CRM IT solutions. Many analysts believe that often investment is wasted without adequate expenditure on staff training. In addition many are yet to identify their most profitable customers, those most likely to switch and the key factors driving satisfaction • Customer ownership. Traditional organization around business lines can prevent an holistic view of customers needs. This report considers a variety of organisational structures and evaluates how they relate to customer satisfaction. • Distribution strategies. This report examines the changing role of routes such as branch networks for banks and...
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