6 MAJOR BENEFITS OF USING BANKING CRM
6 MAJOR BENEFITS OF USING BANKING CRM
You will be intrigued to know that globally, the CRM software market was valued at $9.5 billion in 2021 and is projected to touch $39.2 billion by 2031 with a CAGR of 15.7%.
Technological disruption has changed almost every vertical of the industry. Alongside technological advancement, the needs and behaviors of the consumer base have evolved at an exceptional rate. Even banking customers have become more conscious about their money and the channels they leverage to acquire maximum benefits.
Banks are continuously adapting and evolving to keep pace with the advancements and facilitate their clients in the best possible way. With the emerging customer demands, increasing competition, and a customer-centric approach to the service the usage of CRM has become more valuable than ever before. Let’s delve to understand the needs of CRM in the banking sector and the benefits, it has to offer.
CRM IN BANKING
CRM in banking refers to a technology-driven system that enables financial institutions to manage and optimize their interactions with customers. It helps banks in the following ways;
Using CRM in banking not only gives a competitive edge but also yields prolific benefits. Like, it empowers banks to personalize services, improve customer retention, streamline processes, gain valuable insights for sales and marketing efforts, enhance staff productivity, and ultimately foster stronger and more profitable relationships with their customers.
6 MAJOR BENEFITS OF USING BANKING CRM
Adopting CRM in banking can help transform customer experiences and foster a bright future for banks. Let’s explore some of the major benefits below;
1. 360 Degree Customer View
It won’t be an exaggeration to say that a CRM in banking offers a comprehensive 360-degree customer view with fine personalization. It not only seamlessly integrates with the existing banking software programs but also consolidates the system, granting you access to a unified perspective of each customer account.
This valuable repository of information allows banks to swiftly delve into the customers' habits and personal preferences, thereby empowering banks to align their product offerings with their individual financial goals. In turn, this alignment creates a sense of tailored service and enhances the overall customer experience.
2. Cementing Customer Retention
Establishing a lasting relationship with customers is of paramount importance and many banks face this challenge. Therefore, CRM in banking equipped with an abundance of data can prove to be a catalyst for nurturing long-term customer loyalty. Through proactive measures, enabled by the CRM, you can personalize your services based on the insights derived from the vast customer dataset at your disposal. By recording customer notes and personal information within the CRM, you lay the foundation for an elevated experience.
For instance, if a bank teller adds a note to a customer profile indicating their queries about a specific loan type, the loan department can subsequently reach out to the customer via email, providing them with valuable resources to elucidate their options. Such attentiveness demonstrates your commitment to listening and improving their banking journey, fostering a strategic and lasting bond with your customers.
Recommended by LinkedIn
3. Streamline Process Flow
The implementation of a banking CRM facilitates expedited processes across various touchpoints. With a single, unified system, any bank employee can swiftly access a customer's profile, ensuring a seamless transition between departments.
For example, when a customer contacts your call center, the employee handling the query can make real-time updates to their profile within the CRM. Consequently, when the customer visits a local bank branch, the bank tellers will have access to the interaction notes from their call center experience. This streamlined flow of information eliminates duplicate conversations and equips bank tellers with a comprehensive understanding of each customer's unique situation. By eliminating inefficiencies, you enhance operational efficiency and deliver a consistently excellent customer experience.
4. Data-driven and insightful marketing and sales efforts
The wealth of insights amassed within the CRM can empower banks’ sales and marketing efforts, leading to improved strategies. By compiling the CRM data into comprehensive reports, they gain a profound understanding of their customers and their behaviors. This in-depth comprehension helps to identify trends, evaluate the success of marketing campaigns, and pinpoint areas for improvement. Armed with this knowledge, it gets easy to anticipate customer needs and tailor future marketing endeavors accordingly.
Furthermore, the customer profiles stored within the CRM serve as a valuable resource for identifying cross-selling and upselling opportunities. For instance, when a customer makes an in-person deposit, the bank teller, equipped with a holistic view of their profile, can inform them about new products they may find interesting or be eligible for, such as a platinum credit card. By leveraging these insights, you can enhance your sales and marketing strategies, resulting in a more personalized and targeted approach.
5. Increase in Productivity
Implementing a banking CRM system has the power to revolutionize a bank’s staff's productivity. By consolidating customer information into a single platform, employees no longer need to search through emails or navigate multiple platforms for quick answers, eliminating repetitive administrative tasks and enabling them to dedicate more time to nurturing client relationships.
Leveraging social networking and mobile capabilities within the CRM can further boost productivity, as evidenced by a significant 26.4 percent increase reported by Nucleus Research . Additionally, the flexibility of accessing the CRM from any device ensures data can be viewed anytime and anywhere, removing limitations and empowering staff to work efficiently. With a banking CRM, the workforce can unleash their true potential, focusing on meaningful engagement and delivering exceptional service to customers.
6. Increased Customer Loyalty
Fostering customer loyalty is crucial for the success of businesses. For example, unlocking the potential of increased lead conversion is a compelling reason to implement a banking CRM system. Imagine the scenario where you reach out to a prospect to present them with a new service, only to discover that their needs have already been met by another department within your own bank. This missed opportunity can be resolved by leveraging the power of a CRM.
Let’s say, when a real estate customer expands their manufacturing operations in a newly-acquired building and requires additional equipment if your bank offers both real estate and equipment leasing services, you can swiftly identify and pursue this new opportunity.
Building upon existing relationships with customers significantly enhances the probability of successfully selling additional products or services. Statistics corroborate this fact, with conversion rates ranging from 5 to 20 percent for new customers, while existing customers boast conversion rates of 60 to 70 percent. Hence, by harnessing the capabilities of a banking CRM, you can capitalize on these favorable odds, driving revenue growth and strengthening customer loyalty.
HOW STRATEGISTHUB CAN FACILITATE?
If you are a bank that is eager to get benefit from the transformative capabilities of banking CRM software, then look no further than StrategistHub .
We build customized and innovative CRM solutions that offer a customer-centric view of your business. It will seamlessly integrate with the entire suite of Microsoft products, equipping bankers with powerful tools to comprehend their customers' needs and preferences.
Reach out to us today and embark on your journey toward enhanced customer engagement and operational excellence.