Banks are an economic driving force and play a significant role in upgrading the standard of living in an economy. They store all the data about their customers at all the stages in their life. With so much data to store and handle, it can be problematic for banks to manage it all without a customized solution.
When we talk about customizability and handling, there are very few solutions as good as Customer Relationship Management or CRM. Further, with customers nowadays laden with so many options across the board, it is apparent that you need something special to retain them.
In this article, we will discuss the top 7 advantages of CRM, which makes it an important part of the banking industry.
Advantages of CRM in banking
1. Improvement in lead conversion
CRM is an integral part of your lead conversion tactics. With its help, you can find newer ways to attract your potential customers, convert them into your leads who will become your future customers.
You will get the advantage of automated funnels, and the software will provide you the right mode of communication such as emails, notifications, calls, or others at the right time. Also, in the traditional model, you will find instances of multiple people from the organization calling the same client for the same purpose.
CRM ensures that there is no communication gap amongst the workforce, and it assigns leads to each employee based on his/her capability. As per APSIS, automation software is responsible for converting more leads for 77 percent of its users.
2. Increase in sales
As per FDIC statistics, business banks are accountable for giving out loans 15 times higher than that of consumer lenders. It not only means opportunity, but it means increased competition too. CRM helps the bankers to identify, nurture, and convert leads into clients before others can even try to sneak you out.
3. Higher productivity
CRM allows quick access to consumer data, which leads to a reduction in repetitive administrative tasks, drawing out immediate reports, and improving your existing sales processes. Not only that, it helps you in automating the less critical processes, which means your workforce can now concentrate on the more important ones.
4. Personalizing customer journey
It is great to have new customers flowing in your business, but would it not be helpful to follow up on your existing customers? For that, you will have to keep track of their activities and use it constructively to drive your marketing campaigns. Without an automated system, it would not be effortless for your staff to manage all the activities of the clients.
With CRM, it becomes easier for the banks to create reports and graphic representations of critical trends amongst your customers. It helps you to create specific campaigns that target the requisite customers. Good automation software is a great way to track customer behavior and their needs, which allows you to send them suggestions at the right time.
5. Data tracking across the department
We all know that data drives marketing, and it is much more than mere visits, likes, and clicks. By employing the right CRM software, you can get the leverage of tracking data from several departments. Once you do that, you know his main concerns, which can help you place your products better. The next time he calls customer care, you can utilize it to make sure that they get the best experience.
6. Spike in customer loyalty
Customer loyalty is something that develops over a period of time and is not a one-day affair. As per Demand Gen report, where 81 percent of brands indulge in early-stage lead nurturing, only 29 percent target their existing customers beyond their first purchase.
It brings you in a precarious situation where you can lose your existing customers without any previous notice. With CRM at the fore, you can send them regular emails containing information about any new changes or additions in your services, which will have them interested. It automatically results in higher customer loyalty.
7. Better customer experience
It doesn’t matter if you have hundreds of services in your portfolio, you still have to excel at customer experience to attract more customers. A sound banking CRM allows you to answer customers’ questions and to solve their issues without the need to transfer them from one department to another recklessly.
Gone are the days when CRM was applicable only for sales purposes. In today’s world, banks suffer from the challenge of managing their customer data and effectively using it to drive their business. CRM helps the banks to automate their processes and to figure out strategies that would work. Do not get yourself an unnecessary hurdle by ignoring CRM for yourself.