29 октября 2014

CRM systems monitor relation history for each customer

Both small and large companies need to interact with their customers, yet small companies could manage this without any special software, while large companies would find such software vital.

Banks particularly need CRM systems, since front-office employees process the majority of transactions, interact with a multitude of customers, and maintain service levels, while realizing the bank mission.

Several indicators may show the necessity to implement a CRM. Firstly, it is the customers’ outflow to competitors, difficulties in attracting new customers, difficulties in determining how many customers a bank branch has, or impossibility to forecast profits. Secondly, it is unsuccessful marketing campaigns or customers complaining of slow servicing.

Customer relations management contemplates a detailed study of customer needs. A company’s recent technological discovery may soon be adopted by competitors, while an individual customer approach is rather difficult to steal, since it is a complex thing.

CRM products are ideal for establishing and maintaining efficient relations between banks, individuals, and prospective partners. Due to IT support, banking employees may promptly access information needed for high-class customer servicing. Certain information may serve to establish an individual approach to a promising customer or avoid incompliance relating to fraud.

An operative CRM stores the list of companies and their contacts. Generally, a CRM is needed by bank’s front-office and call center at which such system supports income earning and fast and accurate reporting.

With a CRM, you may compose a partner database, unite contact data placed everywhere, and promptly find required information. Some CRM solutions add more functions to the above.

Key functions of CRMs are rather extensive. Data on legal entities and individuals may be stored separately, including data on prospective customers. When a prospective customer becomes a real one, relevant data may be transferred from one database to another. For a promising customer, a special manager may be assigned to maintain relations. Data on such relations are accumulated and catalogued to be available for the front office and call center which realize customeraddressing initiatives.

Contacts are accumulated and catalogued in complete dossiers which contain addresses, communication channels, banking details, contact persons, and relationship and deal history with relevant documents attached. Operators may use filters to find a certain dossier.

With a CRM, you may monitor deal stages and change statuses. The software allows aligning of all deal stages to represent a single picture. You may choose security parameters and assign different access rights.

CRM systems include planning functions – establish a meeting date, view a history of phone calls and messages, and create a note.

With a CRM, you may attract customers to presentations, roundtables, and other events and monitor relevant expenses and profits.

Andrey Lyushin, Deputy Chair of Board, LOCKO-Bank, says, "LOCKO-Bank chose CRM Microsoft Dynamics. It was implemented at all our branches in 21+ regions of Russia. We focused on automation of processes in retail banking, as well as processes relating to small and medium customers. Operations of the sales department have become more transparent due to a consolidated customer base which decreased time to find required information." The professional says that the implemented system monitors deal processes and their efficiency, thus increasing a general level of customer servicing at every stage. "The marketing sector has received a powerful tool to analyze feedback, depending on actions and reactions. We believe we made the right choice in terms of both costs and time to implement," says the expert.

A CRM can work together with other systems, such as call centers. Nowadays, banking institutions may prefer either Russian products or foreign ones, such as SAP, Oracle, or Microsoft.

Andrey Lyushin (LOCKO-Bank) says, "The composition of functions represented in Microsoft Dynamics CRM goes beyond the standard 2D formula "Functions –Price". It shows a new formula "Functions – Price – Implementation Speed – Deliverables". This means we witness the transition from the 2D to 4D functional."

This CRM is easy-to-use, reliable, and multi-functional. It may also become your advantage when competing for new and loyal customers. A CRM system could support a bank during both troubled times and times when growth rates of loan facilities decrease which could be seen right now.

More frequent mergers and acquisitions, network expansions, and cross-sale extensions inspire the CRM demand even more. Cross sales help to attract external financing due to a well-working scheme of product promotion and active customer base.

For a bank, an implemented CRM may help to establish an exhaustive consolidated database of both existing and prospective customers. An IT infrastructure for business processes helps to establish close relations between the bank’s marketing, servicing, and sales departments. With a CRM, a bank could establish its rules and provisions relating to customer interactions in accordance with the bank’s strategies, as well as servicing standards and an employee assessment system.

It is worth noting that implementation of a CRM would inspire changes in the entire bank’s processes. If you decided on a CRM implementation, you need to promptly react on developers’ requests and be ready to reconstruct your accustomed systems and processes.


Yuri VOSTRIKOV, NORBIT, Business Development Director, Microsoft Dynamics CRM

Currently banks show a biggest CRM demand, if compared to other industries. CRM systems allow addressing two objectives ñ attract new customers and retain existing ones.

For banking institutions, other important objectives are customer segmentation, maintaining agreed service levels, addressing customer needs, etc. Each of these objectives could be achieved with the help of up-to-date CRM systems. Microsoft Dynamics CRM is a high-class platform that provides a widest range of functions.

Any bank may use a CRM, provided its management clearly knows the objectives to be achieved through this. Firstly, management should know key characteristics of the bank, its customers, and its development strategy and targets, and express the will to optimize existing business processes.

Generally, CRM systems are mainly requested by banks that are interested in up-to-date technologies in customer relations and sales, which require an IT infrastructure, and apply certain efforts to expand their customer base.

Efficiency of a CRM system primarily depends on how it could help to realize the bankís strategy. The prime criterion of the CRM efficiency is whether the bank employees exhaustively use the CRM functions and understand how it could boost sales and maintain high servicing levels. Another efficiency criterion is whether the bank closely monitors which products could raise loyalty of existing customers and an average number of products per customer. Besides, any bank needs to persuade its customers to invite their friends to the bank. The special solution for banks "NORBIT: Multi-Channel Front for Banks" helps to drastically increase a CRM efficiency. The solution is intended to support efficient strategies of customer relation management in consideration of the customer industry specifics.