CRM: Making it Simple for the Banking Industry
Aslam Chaudhry, SAS Institute Inc., Cary, NC
Executing Customer Relationship Management (CRM) for the financial and banking industry involves many issues, including the use of unique processes and solutions. To be successful with CRM, financial and banking organizations must define and develop a business strategy as well as a supporting infrastructure for that strategy. SAS® Banking Intelligence Solutions can be used to complete these tasks smoothly and efficiently – even by the non-technical banking business user community. With SAS Banking Intelligence Solutions, banking and financial industry business users can quickly learn how to segment, cross-sell, up-sell, and retain customers. Additionally, the users can monitor customer life-cycle trends to aid customer portfolio management with a “customer equity” assets management focus.
CRM is a business model that aligns product and sales strategies with customer requirements and preferences. Services are then provided in a timely manner using the channels that are preferred by the customers. Effective CRM starts by focusing on the development of business strategies and by aligning an organization to serve customers. These business strategies are then executed using CRM technology solutions. The most successful business strategies are developed only after an organization learns about customers’ behavior patterns and attitudes. Behavior studies show what products or services have been purchased in the past and what products or services are currently being bought. Attitudes studies show what customers are thinking and feeling about future buying decisions. Uncovering customers’ behavior patterns and attitudes involves collecting relevant transactional and survey data, placing the data into a data repository, and then applying analytical techniques. After the information is collected from the data, an actionable business plan can be developed to create the multi-channel customer contact strategies that offer the optimal products or services. This paper explores the traditional approaches to implementing CRM projects in the banking or financial industry. It also highlights the major issues facing the industry in implementing such solutions. Additionally, the paper describes the SAS Banking Intelligence Solutions, and how these solutions can be used to lower CRM costs and to provide a better understanding of an organization’s customer base.
INCORPORATING CUSTOMER RELATIONSHIP MANAGEMENT
The effective use of CRM principles requires a three-pronged approach. First, all CRM efforts should begin with a well-defined strategy. Second, an infrastructure must be developed to achieve appropriate objectives. Specifically, the infrastructure should align product and sales goals to meet customer needs, according to their preferences, in the most cost-efficient manner. Third, continuous analytic intelligence should be used to determine and modify customer interaction. In addition to the above approach, implementing CRM involves collecting and reviewing the most relevant customer data. Relevant customer data can uncover needed information about behavior patterns and attitudes. Once identified, the customer data should be incorporated into the infrastructure so that effective marketing plans can be developed. The execution of marketing plans is driven both by analytic insights obtained about customers and by any existing marketing communication plans. These ‘drivers’ can be used to place customers in pre-identified groups or to support triggers and scores that identify specific individual behavior patterns. After appropriate customer data analysis and marketing plan development is complete, the multi-channel customer contact strategies can be implemented within the CRM technology infrastructure.
CUSTOMER RELATIONSHIP MANAGEMENT COMPONENTS
There is an evolutionary approach to...