The effect of CRM

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The effect of CRM

  1. 1. THE EFFECT OF CRM ON BANKING PROFIT
  2. 2. Not everything that can be counted counts,and not everything that counts can becounted (Albert Einstein 1879-1955)
  3. 3. Make all of your customers love you and buy more ofyour stuff.Customer relationship management or CRM, is yet another one ofthose popular three letter programs that have been implementedby most large corporations over the last decade that has failed tolive up to its expectations.
  4. 4. The definition of CRM for banksIt is important that the client not the product is in the center. TheCRM definition we use is the following, „having the right offer forthe right client, at the right time via the right channel‟.
  5. 5. The definition of CRM for banksCRM is much more than a technological solution. It is a strategyintegrated in the business model of the banks and clearlyoriented to value generation
  6. 6. The definition of CRM for banksCRM is about enterprises collaborating across the customer valuechain to develop and implement solutions that better meet theevolving preferences of individual customer groups. The C inCRM therefore has now evolved from „Customer‟ to“Collaborative”.
  7. 7. The importance of CRM for banksCustomer relationship management is a broad approach forcreating, maintaining and expanding customer relationships
  8. 8. The importance of CRM for banksCRM is the business strategy that aims tounderstand, anticipate, manage and personalize the needs of anorganization‟s current and potential customers.
  9. 9. The importance of CRM for banksCRM is the business strategy that aims to understand, anticipate,manage and personalize the needs of an organization‟s currentand potential customers.At the heart of a perfect strategy is the creation of mutual value forall parties involved in the business process.
  10. 10. The importance of CRM for banksCRM is the business strategy that aims tounderstand, anticipate, manage and personalize the needs of anorganization‟s current and potential customers.At the heart of a perfect strategy is the creation of mutual value forall parties involved in the business process.It is about creating a sustainable competitive advantage by beingthe best at understanding, communicating, and delivering anddeveloping existing customer relationships in addition to creatingand keeping new customers
  11. 11. The importance of CRM for banksCRM is the business strategy that aims tounderstand, anticipate, manage and personalize the needs of anorganization‟s current and potential customers.At the heart of a perfect strategy is the creation of mutual value forall parties involved in the business process.It is about creating a sustainable competitive advantage by beingthe best at understanding, communicating, and delivering anddeveloping existing customer relationships in addition to creatingand keeping new customers
  12. 12. The importance of CRM for banksSo the concept of product life cycle is giving way to the concept ofcustomer life cycle focusing on the development of products andservices that anticipate the future need of the existing customersand creating additional services that extend existing customerrelationships beyond transactions.
  13. 13. What is CRM supposed to do?
  14. 14. What is CRM supposed to do?The theory behind CRM is that if companies take a systematicapproach to building relationships with important customers, thiswill result in greater levels of customer satisfaction, increasedrevenue from those customers, and greater loyalty.
  15. 15. CRM is based on faulty assumptionsFaulty assumption # 1: Building a relationship requires a ystematicprocess and management system.
  16. 16. CRM is based on faulty assumptions Faulty assumption # 1Building a relationship requires a systematic process andmanagement system.Anyone who has ever had a job in sales knows that you can‟t take to sameapproach to sales as you can with engineering a product or landing a plane.You can follow the exact same series of behaviors with one prospect, andshe does not buy a thing.
  17. 17. CRM is based on faulty assumptions Faulty assumption # 2CRM software provides the data needed to improve yourability to build relationships with customersMost CRM data bases include all sorts of information about accounts andindividual customers. There is information in there about the org. structureand who has the real authority, decision making matrices, and personalinformation about customers such as their previous jobs, buyinghistory, spouse‟s names, kid‟s ages and names, hobbies, interests, golfscores, favorite vacation spots, etc.
  18. 18. CRM is based on faulty assumptions Faulty assumption # 3:It will be easy for the salespeople to use the CRM softwareand they will love it when they see how it helps them sellmore.a lot of friends and clients in sales jobs: pharmaceuticals, insurance, financialservices, medical devices, copiers, and a host of other products andservices. One thing you hear from all of them is that they hate theircompany‟s stupid CRM systems. It‟s common for salespeople to spend 2-4hours a day with their lap top, typing in reports of conversations withcustomers and prospects, entering data, and preparing account statusreports.
  19. 19. How to Measure CRM Success
  20. 20. How to Measure CRM Success1- Input metrics measures of quality, accuracy, thoroughness, and the degree to which data are current and verifiable
  21. 21. How to Measure CRM Success2- Process metrics measures of behavior or activity proven to link to good performance
  22. 22. How to Measure CRM Success3- Output metrics Quantifiable things that can be counted such as orders, samples distributed, proposals submitted, new clients acquired, brochures sent, phone calls made, meetings held, accounts visited, demos conducted, etc.
  23. 23. How to Measure CRM Success4- Outcome metrics gross margin dollars, sales revenue, reduced marketing costs, artnerships with important customers.
  24. 24. What benefits can banks hope to achieve through deploying CRM solutions?
  25. 25. What benefits can banks hope to achieve through deploying CRM solutions?It depends on the positioning and focus of a bank. If operational excellence isyour key-focus and not customer intimacy, the choices you make in terms ofinvestments in CRM will be completely different. In strategic terms, ABN AMROhas a strong ambition to create value for our clients (especially the "midmarket"which we define as mass-affluent/ private client consumers and mid-sizedbusinesses) by offering high-quality financial solutions that best meet theircurrent needs and long-term goals.
  26. 26. Present and Future of CRM in banking
  27. 27. Present and Future of CRM in bankingBank merely an organization it accepts deposits and lends money to the needypersons, but banking is the process associated with the activities of banks. Itincludes issuance of cheque and cards, monthly statements, timelyannouncement of new services, helping the customers to avail online andmobile banking etc. Huge growth of customer relationship management ispredicted in the banking sector over the next few years.
  28. 28. Steps to follow- Identification of proper CRM initiatives
  29. 29. Steps to follow- Identification of proper CRM initiatives- Implementing adequate technologies in order to assist CRM initiative
  30. 30. Steps to follow- Identification of proper CRM initiatives- Implementing adequate technologies in order to assist CRM initiative- Setting standards (targets) for each initiative and each person involved in that circle
  31. 31. Steps to follow- Identification of proper CRM initiatives- Implementing adequate technologies in order to assist CRM initiative- Setting standards (targets) for each initiative and each person involved in that circle- Evaluating actual performance with the standard or benchmark
  32. 32. Steps to follow- Identification of proper CRM initiatives.- Implementing adequate technologies in order to assist CRM initiative.- Setting standards (targets) for each initiative and each person involved in that circle.- Evaluating actual performance with the standard or benchmark.- Taking corrective actions to improve deviations, if any.
  33. 33. Conclusion
  34. 34. ConclusionCustomers are the backbone of any kind of business activities, maintainingrelationship with them yield better result
  35. 35. ConclusionCustomers are the backbone of any kind of business activities, maintainingrelationship with them yield better resultWorking with Luxoft helped the client to understand the issues of the currentsystem and to improve the business process flow within the bank
  36. 36. ConclusionCustomers are the backbone of any kind of business activities, maintainingrelationship with them yield better resultWorking with Luxoft helped the client to understand the issues of the currentsystem and to improve the business process flow within the bankAs a result of the implementation of the new CRM system, the time taken fordata entry within the bank has been significantly reduced
  37. 37. ConclusionCustomers are the backbone of any kind of business activities, maintainingrelationship with them yield better resultWorking with Luxoft helped the client to understand the issues of the currentsystem and to improve the business process flow within the bankAs a result of the implementation of the new CRM system, the time taken fordata entry within the bank has been significantly reducedThe new CRM system provides a single point of access to corporate clients‟data to all the parties and brought together sales, global relationship managersand senior investment bankers across the client organization

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