Keys to success with CRM technology

Jay Kassling talks openly about how Customer Relationship Management (CRM) can benefit from improved CRM technology.

“Banks and credit unions have never implemented CRM before, so they have no experience to draw upon for success.”
-Jay Kassing

With hundreds of CRM installations in financial institutions, MARQUIS must have some unique insight into what makes CRM work or not work in banking. What two or three ideas drive CRM success?

Jay Kassling: You are right. From our vantage point, we have seen what works and what does not. But specifically the three biggest predictors of CRM success for financial institutions are to 1) develop simple CRM Goals that can be monetized (meaning - how will you make money doing this?), 2) train and implement the CRM technology to satisfy your specific objectives only (not to learn all a technology can do) and 3), track your progress to measure for success. 

As it relates to goals, what are the typical goals you find financial institutions desiring and achieving measureable success with?

JK: Every institution is unique in what they seek. Yet many of the goals that we find in successful CRM implementations are: reducing client attrition, improving cross-sales ratios, electronically tracking leads/referrals, improving key account business intelligence & contact management and administrating incentive programs. 

In the end, each institution needs to prove success with CRM by executing and measuring whatever goals they find important to them.  But if an objective is too broad, it cannot be measured easily, is not measured at all, and/or you cannot hold your team accountable. 

Another Goal you mentioned is implementation and training to meet an institution's stated objectives. Why do institutions overlook this?

JK: The training and implementation of technology is assumed by most folks. This simply means that generally, banks and credit unions feel every vendor trains and implements to about the same level. In our experience, these things are more important than the technology itself. In reality, banks and credit unions have never implemented CRM before, so they have no experience to draw upon for success.  There are a few deep, cavernous traps that financial institutions will absolutely fall into without experienced CRM counsel. 

As an example, CRM technology vendors typically train their clients' staff how to technically use the software. But who is guiding management and users alike on how to prioritize their goals, put together an implementation plan and customize the system to fit them?  Training vs. implementation is not subtle 'wordsmithing'; The differences are enormous. 

What role does the CEO, the Board and senior management play in making CRM technology a winning initiative and positive experience for financial institutions?

JK: Accountability. If even one person among senior management is not on board with the whole CRM initiative, then success is at risk. The CEO, the Board of Directors and all of senior management must agree that embracing CRM is fundamental to how they will do business in the future. Just like balancing the teller drawer, being CRM-enabled is the way we work. Then, they must hold their respective staff accountable for using the CRM tool to build relationships and sell (and service) more effectively, so as to deliver results that can be measured. 

The CEO and senior management must hold everyone accountable. 

Does data matter?  More specifically, how is the risk of sloppy data and data management felt in the day-to-day execution of CRM?

JK: Having good client data is imperative to success with CRM. The fastest way to get your staff to stop using any CRM tool is to push data through CRM that they do not trust but are being held accountable to rely upon. We could spend another hour on this topic alone. Many financial institutions pull lists of clients into a CRM database once and refresh that data irregularly. Your front line staff needs accurate, timely data that they know is aligned with their core system (and the other systems that house services or other relationships.) All client and prospect data must be updated and enhanced no less than nightly. 

To read the complete white paper on "The Ten Keys to Success with CRM" visit: http://www.gomarquis.com/pdf/10%20Keys%20to%20Success%20with%20CRM.pdf

  

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Biography

Jay Kassing is president of MARQUIS, a CRM, MCIF software, service and consulting firm, of Plano, TX.  He has written dozens of articles for the trade press and spoken at virtually every national Association on  the topics of CRM, client retention, marketing and more.