Solutions to Achieve Your 2010 CRM Goals

For your customers, this may be back-to-school season. But for financial institutions like yours, it’s more like New Year’s — time to review 2009 and set your CRM resolutions for the year ahead.

Looking back, we see a chaotic year that changed the consumer mindset. Looking forward, we wonder how to make progress given the new and still-changing dynamics around us.

Here, we take a look at four common CRM goals and point you toward some solutions — tried-and-true as well as up-and-coming.

Banks today are battling negative consumer feelings about the financial services industry in general. “The challenge is how to regain that trust — and how to compete against the growing number of Internet-only banks,“ says CCG Senior Vice President and Strategist Greg Sultan. “The answer comes back to building relationships.“ Start by making sure customers know they are respected. Tell good customers you appreciate that they’ve stood by you — and let them know you’re standing by them, too.

“Many financial institutions find that new customers leave at a rate of 25 to 30 percent per year. Yet that period can also present an opportunity, with customers accepting new products and services at high rates,“ says Greg Sultan, CCG Senior Vice President and Strategist. “And the longer you keep a customer, the more valuable they can be.”

For instance, past research has shown that, per 100,000 accounts:

• Incremental annual profit from first-year customers is $1 million.
• Incremental annual profit from customers with a bank more than three years is $5.2 million.

To aim for positive outcomes, find ways to show customers the value of your institution — and how much you value them, as well. Communicate through as many touchpoints as possible and increase your ability to personalize messages, keeping them highly relevant to each individual.

Many banks are looking to increase debit card usage next year — not only as a revenue stream, but also because it’s been shown to increase customer loyalty and share of wallet. But with card fee structures tightening and customers increasingly investigating your competitors, how can you leverage debit cards to your advantage?

“Now is the time to put your customer data to work,“ says Sultan. “Identify customers who don’t have debit cards or who don’t use the debit cards they have. Then begin educational campaigns that explain the benefits of usage. Look at active users and create customized communications that encourage them to use their card in new ways — for instance, if they’re using it to buy gas, offer an incentive if they use it for their next grocery shopping trip, too.“

Consider loyalty programs, as well, Sultan adds. “This could be a ‘round up’ style rebate program or an affinity program that offers rewards through airlines, hotels or local merchants.“

This has become an especially important goal in 2010, as banks continue seeking ways to improve their cash flow position and shore up asset quality.

“Like many 2010 initiatives, this one is about rebuilding trust,“ says Sultan. “Customers need to be reassured that their deposits are safe with you — and that your bank has their best interests at heart.“

Consider marketing campaigns that focus on why customers should stay with you. Don’t be afraid to move beyond straight financial facts into more emotional connections. And use triggered communications to reach customers at critical decision times, such as when a CD is coming due.