Relationship matters

Greg Anderson tells FST about the benefits that implementing a successful CRM program can bring.

FST. In today’s financial services climate, customer service must be both accessible and highly personalised. Why is this so important and what challenges does it present to financial organisations?
GA. Most financial services products do are just commodities. What differentiates firms are their intellectual property and the services that they provide. Customers today want to be able to access the information they need in the way that is the easiest for them at the time; that could be through the web for some transactions, or through the phone or with an individual. The challenge for firms is to have the same level of personalization and ease of use through the different channels to provide a unique and value-added experience for their customers.

FST. Financial companies must manage growing customer sophistication by providing relevant information in real time in a format that the customer desires. How can a CRM solution help and what benefits does such a system offer?
GA. There are a variety of benefits that CRM can bring to financial services firms dependent on their most critical business needs. Some basic benefits could include better compliance, increased revenue; reduce cost, and higher customer retention.

The financial services industry is one of the most highly regulated industries, where legislation, such as the Patriot Act and ‘Know your customer,’ require you to obtain and periodically update certain information. With a CRM solution you can track this information, provide warnings when out of compliance and send out automatic reminders to get updated information. CRM can be a valuable tool in managing your complaints risk.

A study by CSO Insight showed that firms that have a methodology and used technology to reinforce that sales methodology closed 16 percent more business. CRM can ensure your staff are following best practices to reduce risk and close more business.

Different studies have shown that a sales person spends between 10 to 30 percent of their time on administrative tasks. CRM can automate many of these redundant tasks to give your sales people more time on the phone or in front of clients and prospects.

A well known study found that just a five percent increase in customer retention can increase profit by five percent to 100 percent. CRM can help you provide a consistent communication that is personalized to them, which when done right, brings value to the customer and increase the chances they will stay with you.

FST. Would you agree that effective customer relationship management could be a key differentiator when prospective clients are choosing a financial services provider?
GA. Absolutely; many of the financial services products that are offered today are offered by many, many firms so it is your customer service that can truly differentiate your from your competitors.

FST. What are the business benefits of outsourcing customer care to a specialist?
GA. The benefits of outsourcing your customer service can be reduced cost and increased customer retention with exceptional customer service. But you also need to consider that your customers and your brand are probably your most valuable assets, so choose your partner carefully to make sure that there is a clear understanding of the level of services expected and have service level agreements in place.

FST. Some organisations may be dissuaded from employing a CRM solution because of the cost and complexity of doing so. What kind of improvements in profitability and efficiency can such systems provide?
GA. Return on investment is dependent on the firm and their commitment to the project, but recent studies showed that firms that had process and used technology closed 16 percent more business, set up 65 percent more meetings and have better conversion rates throughout the process. So the metrics are there, however, first firms must start with identifying what they want to accomplish, determine how they are going to measure it and establish a benchmark to ensure they get a return on their investment.