Changing the Game In CRM, prt 2: dis-T-A-S-T-E full CRM in retail banking

At the opposite end of the operational spectrum, however, if a bank were to implement CRM incorrectly – especially without the foundation of T-A-S-T-E - wrongly or in reverse (let’s call it: “anti-CRM”) can we see in that failure to be customer focused and customer based some of the root causes of the financial meltdown and freezing of credit markets?

 

Essential to building a successful business design and to successfully implementing a customer-based, customer focused business model and CRM is the definition of a customer!

 

CRM is a strategy based on customer focus, on customer knowledge, and on delighting the customer. CRM includes customer experience management, customer knowledge management as well as a portfolio management approach to customers. Additionally, effective CRM provides value – as defined by the customer - at each point in the customer’s lifecycle and allows multi-channel interaction (web, phone, in-person, social networking, etc).

 

 

CRM’s strategy defines how a company delivers value to its customers and profits and growth to the firm as it practices customer-based, customer-focused delivery of its products and services. Tied back to the strategy are issues such as business practices, training, communications, data, capture and use, business process, operations, compensation, etc. (viz., people, process, & data).

 

 

The benefits of successful CRM implementations are well documented. They include:

 1.  Increased sales

 2.  Increased profitability

1.     Increased product penetration

2.     Increased customer satisfaction and loyalty

3.     Increased employee satisfaction

4.     Decreased cost-to-serve

5.     Increased retention of the existing customer base during times of economic uncertainty.

6.     Increased likelihood of acquisition of new customers

 

 

T-A-S-T-E, I would submit, inherently lives in successful CRM practice.

 

Unfortunately, in today’s world of failed financial system T-A-S-T-E does not thrive as the motivating principle in Banking’s CRM initiatives whereas greed does. I believe that we can glimpse this failure in the operations of CRM in the home equity marketplace.

What would T-A-S-T-E “guarantee” for clients and platform bankers in the mortgage and equity business relative to the practice of CRM in the banking industry? Can we get a profound insight into anti-CRM in the banking industry by looking at how CRM can be bastardized in the Home Equity and Mortgage businesses of one of the major banks? And, can we see at work some of the greed that has been lofted to the pinnacle of reasons for the collapse of the credit and banking industries?