Finance Industry Market Overview
According to MyCustomer.com the financial services sector is currently experiencing a “surge” in CRM uptake, the financial market is one of the most technology driven sectors and is now one of the largest buyers of CRM solutions. A possible explanation for this could be that in today’s dynamic economic environment, financial services organisations are experiencing more issues when trying to differentiate themselves from their competitors, because the industry is becoming more regulated in terms of price and distribution methods, so it is impossible to stand out on these elements alone. One of the best ways for companies in this space to differentiate is through providing outstanding customer service. In order to effectively attract and retain customers it is imperative to have an infrastructure in place, that is able to harvest and analyse the necessary customer data. Many companies are finding that a well thought out, well implemented and correctly maintained CRM system is just the tonic.
Companies in the financial services industry require innovative CRM for financial services strategies to create growth opportunities, to adapt quickly to changing capital market conditions, and to provide personalized products and services to their clients. A tailored approach is a must for organisations wishing to stand out, a one size fits all approach to CRM simply does not cut it anymore. Customers expect a personalised approach as they have become accustomed to this in other industries and in order to be able to provide this effectively, organisations must know their customers inside out. Taking this into account, an effective financial services CRM software is key to effectively managing customer relationships across all channels and customer touch points. It is imperative that financial service organisations choose a CRM system that can be customised easily so that the organisation can adapt as the market continues to evolve.
Lack of Personalisation
In a report from thefinancialbrand.com it was asserted that only a few financial services companies have implemented true personalization for the broad retail segment. Banking products and services are usually categorized by one of two things; a high-degree of personal service with product personalization delivered to a small segment of wealthy individuals or standardized offerings to the broad consumer retail and mass affluent segments.
A correctly thought out and implemented CRM system can provide significant benefits to companies in finance for the following reasons. The social aspect of CRM (SCRM) can help ramp up customer service which, as mentioned before, is the primary way companies in this space differentiate themselves from the competition. SCRM allows both customers and organisation to engage in a two way dialogue: social media allows customer to voice their opinions on companies, products, services, the economy and financial service providers can use this information to provide a tailored service. blog.hootsuite.com states that Approximately 44% of adults now use the web to share grievances about products. This could be seen as a double edged sword, due to the fact that people are now much quicker to share details of mediocre experiences (that 20 years ago would not have been shared), with vastly increased numbers of people. When people share these experiences, it can be just as detrimental to an organisations brand loyalty levels as negative comments were in the past, due to the customers increased ability to shop around and low switching costs.
Another significant benefit of a well implemented CRM system for financial service organisations is the ability to implement monitoring tools to scour the internet to find complaints and various other mentions, not necessarily on owned accounts, which enables business to find and monitor conversations relating to their products. CSRs are then able to isolate the relevant mentions and respond to them in a way that will put the organisation in a more positive light than their competitors. This practice is essentially making customer service a pro-active exercise as well as a reactive one.
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