Banking

Customer relationship management in banking

Banks grow 3.5x faster by consistently focussing on their CX strategy to build customer relations. According to a report on customer experience trends, 72% of customers want immediate service, 62% prefer personalised recommendations, and 70% expect the banking executive to have the full context of previous conversations.

To maintain customer satisfaction rates, banks must personalise their experience through seamless digital technologies.

This article explains the benefits of a customer relationship management system (CRM) in the banking sector.

Benefits of CRM functions in the banking system

Having a CRM system in banking boosts the performance of employees and the relationships you have with the clients. Here are the benefits –

Higher sales

Banks want big business accounts with higher loan amounts, and a CRM helps you stay ahead of the competition. By having a CRM, your team can identify, nurture, and convert leads easily and quickly. With a CRM, you could have secured a business even before your competitors had a chance to respond to customer queries.

For example, a new customer who has already taken a loan to set up a manufacturing unit may want a new loan to lease equipment. As a business loan bank, you want to handle both the lending opportunities and convert them to sales. With a CRM, you convert up to 20% of new customers and 60 – 70% of existing ones.

Personalised service

Each department and team member within the organisation can access real-time customer information across all profiles. The employees can assist the customer with equal ease, set individual triggers, offer additional services, and follow workflows.

The marketing and sales teams can look up customer data to identify new opportunities to upsell, cross-sell, or provide personalised assistance to queries. Employees do not have to start from the beginning each time there is a query or sales enquiry from a new or existing lead. This streamlines the conversion process.

Higher employee productivity

Research shows that 79% of leads never convert to sales. If your CRM system single-handedly increased the loan sales by 29%, would you hire an additional sales team? The CRM system boosts the productivity of the existing employees with a return of 5.6 times the salary you pay.

A CRM will help you cut costs by streamlining proposals, minimising repetitive tasks, and keeping all the concerned team members informed about a customer’s journey.

Efficient communication

Conversations about your banking services are happening online, quickly, and publicly. One upset customer has the power to permanently tarnish the bank’s reputation on social media. Customers tend to talk more about the bad experiences than the good ones. Your PR team could be staring at a nightmare if you do not have a mechanism to handle communication.

A CRM lets you monitor every conversation on the web about your banking organisation. It is easier to respond quickly to any negative chatter, putting out the spark before it becomes a fire.

Data tracking

Marketing in the modern world is data-driven. Getting likes and shares online is not the only factor that boosts your marketing. You need to know how many customer interactions online convert to sales. You need to know what part of the loan process makes them loyal customers and an avid proponent of your brand. A CRM tracks data from all departments, so a simple call to customer service is an opportunity to serve them and offer a product or service that is potentially useful.

Better customer experience and loyalty

Customer loyalty is what every bank strives for. 76% of consumers say that excellent customer service is the primary factor that drives loyalty and brand value. A CRM gives you access to rich customer profiles with just a few clicks, which saves valuable time. You can easily turn problems into opportunities, thereby increasing loyalty.

A good CRM system for the banking domain focuses on conversations with the clients that offer them a solution quickly and easily. This also provides a highly personalised service, and 77% of business leaders believe it to be the reason for customer retention.

How can Infosys BPM help with relationship management in banking?

Specialised BPM services for banks by Infosys BPM transform operating models, streamline processes, and augment business performance while reducing costs and delivering high value.

Read more about streamlining bpm banking operations.