Few financial institutions have adopted one of the technologies that is key to helping them improve the service to their customers, says a new report from Meridien Research.
The technology, referential linkage, allows the association of customer and household records. While banks, brokerages and insurers have systems in place to capture customer information over different channels and product divisions, achieving a broader view of customers across the enterprise is key to improving customer service. Referential linking solutions allow them to establish unique, persistent keys that can be used to identify customer records throughout the organization; and therefore allows integration of customer databases. Meridien forecasts that financial institutions will spend some US$28m on referential linking solutions this year, rising to over US$41m by 2006.
Customer focus is fundamental
According to Dennis Behrman, analyst at Meridien, "Spending on referential linking solutions is miniscule compared to that of other strategic CRM investments, and looks like it will remain so in the near term. Financial institutions must realise that customer focus, including having a complete view of a customer's relationship with the institution, is fundamental to retaining and expanding relationships with consumers."
The report, Referential Linking Solutions: A Game of Connect the Bits, examines the referential data linking technology and marketplace, several vendor solutions, and the benefits to be expected from their use. More details can be obtained from Meridien.