New research has found that over half of CRM projects fail to produce results, while one in five actually damage long standing relationships. However when accompanied by appropriate training and organisational structure, CRM systems can have a significant impact on revenue.
A research report, 'Customer Relationship Management Strategies in Financial Services: Achieving High Performance and Profiting From Innovations in CRM', from Research and Markets, provides a step-by-step guide to customer retention planning and segmentation techniques.
Some of the most interesting findings from the report included:
- Almost half of all mortgagees are considering changing their lender because they are unhappy with their existing one.
- Customers switching banks cite pricing, service failures and inconvenience as the key factors (90% in a recent survey).
- Many customers prefer face-to-face contact with staff, presenting implications for those who are moving toward an online delivery model.
- Relationship marketing requires structures supporting both customers and front-line staff. New research reveals that financial service retailers may not have structures that are supportive in retaining customers and adapting to changes in the marketplace.
- Barclays' "Platinum Banking" launch to increase loyalty succeeded with a 70% increase in customer income, 11% increase in customer satisfaction, and 80% of customers saying they would strongly endorse Barclays.
Key issues examined in the report include price competition (including how lenders can offer incentives to retention but avoid price discounts), CRM IT solutions, customer ownership (including how different organisational structures relate to customer satisfaction), and distribution strategies.