Bank integrates CRM and employee performance

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By: Wise Marketer Staff |

Posted on May 13, 2002

Three US banks have integrated CRM and employee performance management systems to boost qualified sales referrals by up to 50%, whilst improving employee performance evaluation, integrating department systems and running incentive programmes that have helped them retain key employees.

The Interchange Bank (New Jersey), Legacy Bank of Texas and Technology Credit Union (San Jose, California) have all implemented the new Universal Marketing Database (UMD) from Strategix Performance, a developer of automated employee performance management, incentive compensation, and CRM systems.

The Strategix UMD is a suite of software that lets companies set up incentive compensation programmes enterprise-wide. Users of the system are able to manage referral and sales activities, and to track and report the necessary sales, service and customer relationship management results.

Performance relationships
The system includes employee performance management (EPM) and customer relationship management (CRM) features which link customers with employees on the CRM side, and employees with management on the EPM side. So that company-wide goals can be achieved cost-effectively, the database runs on a client platform of low-cost intranets, accessed by industry standard web browsers. The system can be deployed either by end-user license or application service provider (ASP) hosting.

More referrals
David Acevedo, first vice president of Interchange Bank, said "Strategix Performance's EPM modules allowed us to better evaluate company-wide employee performance. Since the system is also incentive-based we experienced a 50% increase of qualified referrals throughout the organisation within eight months of implementing the first two modules." He added that although the bank is starting with EPM, the CRM modules are being implemented and should be up and running later in the year.

Better sales & service
Cost-effective incentive programmes to support sales and service initiatives are the main attractions, according to the Legacy Bank of Texas and Technology Credit Union in San Jose. The integration of the UMD system introduced accountability through the EPM software. The CRM side gives company executives secured access to restricted customer information, allowing them to better manage the process of achieving company goals.

Legacy Bank alone has launched more than 130 different employee incentive programmes to support the company's initiatives. Within ten months of the installation, the bank had increased company loyalty and halved its employee turnover rate. Now Legacy is concentrating its efforts on increasing brand loyalty with its customers. "The same system that reduced employee turnover is now being used as a customer retention tool for the top 20% of our customers," said Don St. Clair, CEO of Legacy Bank. "Using the same method, the UMD suite will provide data to identify and track the top customers with profitable accounts, allowing the company to determine the best way to properly service, maintain and improve customer loyalty."

People power
The integration of EPM and CRM within the system ensures open lines of communication across all areas of the enterprise. The employee incentive management (EIM) aspect of the system rewards employees for serving, managing and monitoring their customers closely, creating consistent customer relationships which reward the customer, the employee and ultimately the business.

Peter Djokovich, president of Strategix Performance, stated: "To make CRM work, increase ROI, and achieve other critical corporate objectives, the human factor using the technology must also be addressed, and with integrated EPM and CRM this is what UMD offers - performance powered by people."

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