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Ryan Plourde, Crowe

Does Your CRM System Allow You to Treat Your High Value Customers as Highly Valued?

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The evaluation of customers is an important part of any business.  For decades banks have been analyzing customer data trying to determine which customers are the most “valuable.”  Many different systems have been used over the years, each with their pros and cons. Here are some examples:

  • A, B, C subjective ranking where people inside the bank, who know the customers, rank them
  • High Value or Profitability rankings based on products or assets held at the bank
  • Secure customer index or barrier to exit rankings that are based on the length of time as a customer and the number of products the customer purchases
  • High net worth rankings to rank customers by potential instead of actual holdings
  • Householding or referral scores to try to link high net worth individuals together
  • Most recently, net promoter or influencer scores to capitalize on social media trends

Ironically, the bank's investment in these ranking systems typically falls short.  Why? Because even though they may have been able to generate a report stating what customers they think are most valuable, there is no way for the bank to disseminate that knowledge to the lines of business in a consistent, concise manner.  Nor have banks been able to incorporate that knowledge into the line of business applications used to support their customers.  The result is that all customers get the same treatment, good or bad, no matter their value to the bank.

Another challenge is the legal and business walls that prevent the whole picture of a customer from being seen.  Not everyone in the bank is allowed, for instance, to see the investment portfolio of customers or to see the commercial lending relationship that the customer’s business has.

As a solution, the right Customer Relationship Management (CRM) system can help show the total picture and guide internal processes and offers. With updated processes, the bank’s CRM system can consolidate all the customer’s relationships: if they have a mortgage, their kid’s 529 plans, they have IRA's, or a business relationship.  Simple things like color coding a customer’s account record or providing the right icon in CRM help an end user quickly identify top-rated customers, highlighting areas where they can add the most value without providing access to information they are not allowed to see.

If a client is valuable to your bank, it is likely worth waiving some fees or giving a quarter percent more on a CD.  However, without this information readily available, employees can’t provide their highest value, and they risk offending the client or damaging the relationship.

The CRM system can also use the ranking of your clients to help build relationships proactively. You may want to call your top customers at each branch to see how things are going. Or you may want to call the customers who have provided the highest level of customer referrals regardless of the profitability of their individual accounts.

All businesses that deal with customers, especially banks, can benefit from improved CRM system processes. It can make all the difference in maintaining good relationships with your top clients – so that your high value customers feel highly valued.

Crowe CRM for Banking powered by Microsoft Dynamics 365 empowers bank staff with the tools and information needed to efficiently deliver high-quality, personalized service - for all interactions across all channels.   It gives managers and team members the information they need to be effective.

For more information, contact us at crminfo@crowe.com.

By Ryan Plourde, Crowe, Microsoft Dynamics 365 Gold Partner, www.crowecrm.com

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