- 1. BUSINESS INSIGHTS Customer Relationship Management
Strategies in Financial Services Achieving high performance and
profiting from innovations in CRMFinancial Services Management
ReportThe contrasts betweentransaction and relationship marketing
Transaction marketing Relationship marketing Focus on single sales
Focus on customer retention and customer loyalty Emphasis on
product featuresEmphasis upon product benefits that are meaningful
to the customer Short timescalesLong timescales that recognize
short-term costs may be higher but so will long term profits Little
emphasis on customer retention Emphasis upon higher levels of
service that are possibly tailored to the individual customer
Limited customer commitment High customer commitment Moderate
customer contact High customer contact with each contact being used
to gain information to build the relationship Quality is the
concern of production andThe entire organization shares a no-one
else commitment toSource: CRM Strategies in Financial ServicesThere
are sound financial reasons for the growingpopularity of
relationship marketing: research has shownthat the cost of
attracting a new customer is estimated tobe five times the cost of
keeping a current customerhappy... Create successful CRM strategies
to improve customer satisfaction and loyalty using this reports
examination of effective techniques for identification of potential
switchers, thekey causal factors of defection and which customers
are most profitably retained...
2. Business Intelligence for the Financial Services
IndustryBusiness Insights portfolio of financial services
management reports are designed to help you make wellinformed,
timely business decisions. We understand the problems facing todays
financial services executives whentrying to drive your business
forward, and appreciate the importance of accurate, up-to-date,
incisive product,market and company analysis. We help you to
crystallize your business decisions.The strength of our financial
services research and analysis is derived from access to
unparalleled databasesand libraries of information and the use of
proprietary analytic techniques. Business Insights reports are
authoredby independent experts and contain findings garnered from
dedicated primary research. Our authors leadingpositions secure
them access to interview key executives and to establish which
issues will be of greatest strategicsignificance for the
industry.Our financial services portfolio of reports can be used
across a wide range of business functions to assess
marketconditions and devise future strategies. The order form on
the back of this brochure lists titles available within
thefollowing categories: Banking, Finance, Insurance, Wealth
Management, Investment and Strategy. .Examining the Key Issues
Price competition. Low rate deals are driving switching Reasons for
customer preference for face-to-face contact contributing to
reduced profits for mortgage lenders. This reportsuggests to how
lenders can offer incentives for customer retention
Personal/one-to-one contact Know who I am dealing withwhilst
avoiding price discounts. Like to see things in black and white
Need advice CRM IT solutions. Many analysts believe that often
investment is Trust/advice wasted without adequate expenditure on
staff training. In additionGood relationship with current
providerNot treated like a numbermany are yet to identify their
most profitable customers, those most Dont like the phone likely to
switch and the key factors driving satisfaction 0% 10% 20% 30% 40%
50% 60% 70% 80% Customer ownership. Traditional organization around
businessSource: CRM Strategies in Financial Serviceslines can
prevent an holistic view of customers needs. This
reportCommentators have argued that in the new Internetconsiders a
variety of organisational structures and evaluates how age,
companies can no longer rely on the traditional they relate to
customer satisfaction. bricks and mortar mode, and managers need
torethink and reshape their business strategies. This Distribution
strategies. This report examines the changing role ofnotion may be
premature. Data from MORI shows that many customers prefer
face-to-face contact withroutes such as branch networks for banks
and intermediaries for staff...insurance companies in the context
of the growth of eCRM. Source: Customer Relationship
ManagementStrategies in Financial Services: Achieving
highperformance and profiting from innovations in CRM 3. Customer
Relationship Management Strategies in Financial ServicesAchieving
high performance and profiting from innovations in CRMConsumer
loyalty is a major concern throughout the financial services Market
Mapssector, particularly in the mortgage market. However, like many
otherservices, financial services have characteristics that pose a
number ofproblems for those seeking to create successful customer
relationships.Customer Relationship Management Strategies in
Financial Services:Achieving high performance and profiting from
innovations in CRMis a management report that provides a
step-by-step guide to customerretention planning and segmentation
techniques. This report willprovide you with:Source: CRM Strategies
in Financial Services A research method for monitoring and
developing CRM strategiesOnce the company understands the market
structure Case study analysis of switching signals and rescue plans
it can then take the appropriate steps for each channel and make
strategic decisions about channel mix, Segmentation techniques to
identify the most profitable customers to re-channelling. It needs
to develop detailed metrics oftarget with retention strategies.
market share, sales volume and profitability throughoutthe market
map...Ensure you acquire and retain the most profitable customers
usingSource: Customer Relationship Managementthe most cost
effective methods. Strategies in Financial Services: Achieving high
performance and profiting from innovations in CRMThe Answers to
Your Questions How can potential defectors be identified, when
should they be contacted and what returns can be expected from
win-back programmes? What are the key benefits associated with the
retention of existing customers and the development of long-term
satisfying relationships? Which factors cause customers to switch
suppliers? What are the managerial requirements for CRM
implementation? How do customers evaluate service, and how can
satisfactory levels of Source: CRM Strategies in Financial Services
service quality be achieved both online and offline?Service
performance charts can be used to depict What are the key benefits
of moving online for those marketing comparisons visually. These
comparison charts appear financial services?to be much more widely
used in logistics and customerservices than in general marketing,
but have considerable potential for helping companies developa
segmented service strategy... Source: Customer Relationship
ManagementStrategies in Financial Services: Achieving
highperformance and profiting from innovations in CRM 4. Key
findings from this report Almost half of all mortgagees are looking
to change lenderFirst Direct customercommunication preferences
because they are unhappy with their existing supplier. 180,0004,300
Customers switching banks cite pricing, service failures and
Electronic bankinginconvenience as the key factors (90% in a recent
survey). customers Internet banking customers Many customers prefer
face-to-face contact with staff which has 600,000 Mobile phone
banking customers WAP bankingimplications for those moving towards
an online delivery model. 420,000 customers Relationship marketing
requires structures supporting bothcustomers and front-line staff.
New research reveals that financialservice retailers may not have
structures that are supportive inSource: CRM Strategies in
Financial Servicesretaining customers and adapting to changes in
the marketplace. First Directs service excellence is based on
thesimple premise of listening to what its customers want Barclays
Platinum banking launch to increase loyalty succeededand reacting
accordingly. First Directs staff arewith a 70% increase in customer
income, 11% increase in customer recruited for their listening
skills and take part in five weeks of training and 18 months of
coaching so thatsatisfaction and 80% of customers stating they
would stronglythey understand the business inside out... endorse
Barclays. Source: Customer Relationship ManagementStrategies in
Financial Services: Achieving highperformance and profiting from
innovations in CRMThe Value Proposition Benefit from over 152 pages
of expert insight and analysis, enabling Consumers are more
demanding than everyou to: Implement best practices in CRM,
replicate the successes of ANZ,Trust/advice Barclays, First Direct
and Fidelity Investments and avoid the pitfalls.Good relationship
with current provider Improve customer retention by identifying the
factors that lead toNot treated like a numberattrition and
actioning effective rescue strategies. Dont like the phone Develop
new acquisition and retention techniques beyond short 0% 5% 10%
15%20% 25% 30% 35% 40% 45% term promotions, price discounts and
gimmicky advertisements. Target and retain the most profitable
customers with the help ofSource: CRM Strategies in Financial
Services this reports explanation of transaction and relationship
buyers. Recent research from Henley management centre confirms that
customers are more demanding than Enhance your CRM strategy using
eBusiness using the critical ever. The rise of customer complaints
has been success factors detailed in this report. accompanied by a
rise in the numbers who switch theirservice providers...Source:
Customer Relationship Management Strategies in Financial Services:
Achieving high performance and profiting from innovations in CRM 5.
Sample information from the reportChapter 2: Creating Value for the
Organisation Introduction Understanding the economics of customer
acquisition and retention and their The customer profitability
matrix relationship with lifetime value is fundamental to the
concept of customer value in this context, as is identifying
opportunities for cross-selling and building customer advocacy. It
is particularly important to address value from a customer segment
point of view rather than taking an aggregated approach.
Segmentation is perhaps the most important aspect of value creation
from a relationship marketing perspective, as it provides the
opportunity to tailor the offer to the need of specific segments.
Carefully segmenting the market and developing an approach that
maximises the value of your most desirable customer segments and
the corresponding life-time value that these customerSource: CRM
Strategies in Financial Services groups provide for your company
lies at the heart of the value creationThe customer profitability
matrix illustrated process.above provides some generalised guidance
for strategic direction. The strategies for each quadrant of the
matrix are discussed below. Build: these customers are relatively
cheap to service but their net value is low. Can you increase
volume without increasing the costs of service? Can you direct the
sales team to influence these customers purchases towards a more
profitable sales mix? Danger zone: these customers should be looked
at very carefully. Is there medium to long-term prospect of a
strategic reason for keeping them? Do you need them for their
volume even if their profit margin is low? Cost engineer: these
customers could be more profitable if the costs of serving them
could be reduced. Is there any scope for encouraging this group to
use cheaper online or telephone services? Protect: high net sales
value customers who are relatively cheap to service are worth their
weight in gold. You should seek relationships with these customers,
which will make them less likely to turn to alternative suppliers.
At the same time you should constantly seek opportunities to
develop the volume of business that you do with these customers,
while keeping strict control of costs. Order this report today to
find out more... 6. Table of ContentsEXECUTIVE SUMMARY Delivering
superior value and engaging entire Executive Summaryorganisation
The origins and rationale of relationship marketing - Implications
for practice Creating value for the organisation Demonstrating
trustworthiness How to tackle customer defections - Generalised
trust Achieving customer satisfaction through service - System
trustquality - Personality based trust The implications of
eCommerce for CRM - Process based trust Avoiding the pitfalls of
CRM Who owns the customer?- Effects of merger activityCHAPTER 1:
THE ORIGINS AND RATIONALE OF - The "customer is king"CUSTOMER
RELATIONSHIP MANAGEMENT- "Everyone owns the customer" Summary -
Sharing information company wide is crucial to Introductionwidening
customer ownership- 21st century attitudes towards banks Everyone
owns the customer"- How marketing oriented is your company?-
Benefits of developing relationshipsCHAPTER 2: CREATING VALUE FOR
THE- Relationship marketing Vs transactional marketing
ORGANISATION- Eight major benefits of developing relationships
Summary- Long-term profitability Introduction- Lower costs -
Developing a segmented service strategy that aims- Repeat customers
often cost less to service to deliver increased value to the
customer and the- Opportunities for cross-selling organisation-
Defection less likely - Step 2: Segment the customer base and
determine- Employee retentionsegment value- Family influence- Step
3: Identify segments service needs- Satisfied customers provide
referrals and may be- Step 4: Implement segmented service strategy
willing to pay a price premium - Finalise segment service strategy
A customer retention plan: reducing defectors andboosting retention
ratesCHAPTER 3: HOW TO TACKLE CUSTOMER- Measure customer
retentionDEFECTIONS - The crude retention rate Summary - The
weighted retention rate Introduction Ascertain defection motives
Case study: Abbey- Price defectors - Defection can be remedied-
Market defectors- Possible reasons for customer defection Are all
customers the right customer? What are the factors that force
customers to switch?- Identifying profitable customers for CRM
Retaining customers in a competitive business - First group of
customers to target Loyalty must start to count for something - The
middle group of buyers - The final, less profitable, group of
customers Implementing relationship marketing- Defining the value
proposition- Case study: First Direct- Meeting consumers diverse
requirements 7. Table of ContentsCHAPTER 4: ACHIEVING CUSTOMER
SATISFACTION The focus for change in an international
insuranceTHROUGH SERVICE QUALITYcompany Summary- The stand-alone
Internet bank Introduction Key factors in developing effective
strategies for- Financial services characteristics and implications
foreCommercebranding & relationship management - The role of
senior management- Intangibility- Capabilities required in a
changing environment- Implications for branding- Critical success
factors- Inseparability - The threat of criminal activity on
eCommerce- Implications - Ways to help customers protect themselves
against- Heterogeneityfraud- Implications- Perishability CHAPTER 6:
AVOIDING THE PITFALLS IN CRM- Implications for branding Summary-
Fiduciary responsibility Introduction- Two-way information flows -
Peril 1: Implementing CRM before creating a- Implications customer
strategy- Impact of online delivery for service concepts- Example:
Fidelity Investments- Consumer empowerment- Peril 2: Rolling out
CRm before changing your- Effective separation of production and
consumption organisation to match Service quality - Peril 3:
Assuming that more CRM technology is Example: customer care at the
ANZ bank better- ANZs Customer Service Charter- Peril 4: Stalking
not wooing customers- Researching service qualityCHAPTER 7:
APPENDIX Research objectives- The most common research objectives
in financialTABLESservices Contrasts between transaction and
relationship- Research methodsmarketing- Regular customer surveys
Customer satisfaction exercise- Customer panels Customer management
stage analysis, problems and- Transaction analysisopportunities (2
parts)- Mystery customers Comparison of online metric collection
methods- The SERVQUAL methodology Dimensions of Internet banking
service quality- What to measure Expectations of an excellent
online bank,- How to measure- Table A (4 parts)- Internet customer
questionnaire- Table B (6 parts)CHAPTER 5: THE IMPLICATIONS OF
ECOMMERCEFOR CRM Summary Introduction- How should financial firms
respond?- Example: internal marketing at Barclays How different
companies are approaching eBusiness- The reluctant approach of a
life insurance company- The integrated approach of a national
retailbanking operation 8. About Business InsightsBusiness Insights
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