Relationships and communication are everything for the financial industry. Customers will stay with a bank if they find it beneficial. For example, with the right bank, they may enjoy better interest rates, get their loans approved faster, can ask for a refund on overdraft fees, receive additional benefits for being a loyal customer.
For banks, being able to track these relationships is crucial. They need to be able to record each interaction because it dictates what benefits the customer gets in the future. Because of this, they have begun to adopt tools that allow them to do so. One of them is CRM.
Customer relationship management or (CRM) is a technology that allows businesses to manage all their customer relationships and interactions in one platform. With CRM, banks are able to keep track of their customers’ transactions and credit history, which in turn allows them to give more personalized service. This is just one of the ways that CRM is changing banks.
CRM is also outlining the way KYC compliance ethically obtains customer’s information by verifying a customer’s identity, not by simple questions. It not only verifies who you are but also makes note of any suspicious transactions that wouldn’t normally be purchased by you. It not only protects you but ensures that it also informs you about your current funds.
If you are interested in CRM, keep reading as we discuss below five more ways that CRM is impacting banking.
1. Simplifies Customer Data
No longer do banks need to look through different sources when gathering customer information. CRM collates all customer data in one place, making it easy for bankers to know who they are dealing with. This data can be anything whether it’s a customer’s loan history, the services they use, or the length of time they’ve been with the bank.
With all customer data collated in one system, banks can also give out the right rewards to customers who use their service frequently. For example, it can track cash back, statement credits, and travel miles. Customers are more willing to keep using your services when they see there’s an incentive to do so.
2. Gives Better Recommendations
Because CRM contains a lot of data about a customer, bankers can easily look into their situation and provide the customer with highly useful product recommendations. Certain CRM tools even do this automatically, giving product offers based on customer demographics, what products they use, and their circumstance. Customers love a personalized experience, helping to deepen their relationship with the bank.
3. More Effective Marketing Campaigns
CRM does not just collect data. It also gives you insight into what your customers want and do not want. Banks can leverage this information to create marketing campaigns that are more relevant. Furthermore, they can segment their customers and deliver highly customized campaigns for each group. People respond to messages that resonate with them which can result in more sales for the bank.
4. Better Company Collaboration
Work misunderstandings can often be due to different information across departments. This can be prevented with CRM as all customer information can be found in one place. Collaboration is easier with everyone seamlessly working together to create more sales, address customer issues, and provide appropriate product suggestions. CRM can also automate repetitive tasks allowing human bankers to focus more on having better interactions with customers.
5. Predicting Trends and Customer Behavior
Because CRM holds so much data about customers, it can provide stakeholders with insights that can help enhance a bank’s products and services. By looking at which offerings customers are responding the most, banks can hone on this data to create better products or recommend their other existing products.
Furthermore, the ability to predict will allow banks to enhance customer retention. CRM can predict when a customer is about to leave and switch to a different bank. This allows enough time for the retention team to reach out to the customer and provide them with better, more alluring options.
There are a lot more ways that CRM tools are helping enhance the banking experience but these are ones that are most beneficial to a bank’s bottom line. Is your current bank already using CRM for its customers? How has it impacted your relationship with them? Share your thoughts in the comments below.