August 13, 2012
Preserve At-Risk Clients and Become Their Primary Bank with Microsoft Dynamics CRM
One of my recent blogs highlighted some ways in which Customer Effective has helped high-performing Retail Banks solve common business challenges concerning client retention. I wanted to expand upon that topic and provide two other situations in which Microsoft Dynamics CRM workflows can help preserve at-risk clients and enhance service levels in route to positioning your Bank as the primary financial services provider for your clients.
Retail banks provide a plethora of products and services ranging from Deposits to Loans to Mortgages to Investments to Retirement to Insurance. While there are many different types of checking accounts, essentially they either fall under the consumer or business umbrellas. In both cases, these DDAs are going to have their own distinct fee structures and account minimum balances. Regardless of the size of the deposit account minimum, a Consumer or Business Banker is always going to want to keep an eye on his customer’s current deposit balances. Often times, a drastic balance decline could occur as a “tier 1” client is in the process of repositioning funds and maybe even switching banks. Usually, it is too late to know before they have already depleted and closed their account.
A way to overcome this dilemma is with CRM workflows. Assuming your Bank’s back-end core processing system is integrated with CRM, you can actually monitor the change in the DDA’s balance. Depending on the type of account, such as consumer or business, you can establish a magic number that triggers a workflow to fire and automatically deliver an email alert notification to the Account Officer to inform him of the sudden large dollar balance decline. The magic number is probably going to vary from Bank to Bank based on the type of clients you target. Regardless, it is safe to say that a Business checking account probably deserves to drop by a larger amount than a Consumer checking account in order for the workflow to initiate. Assume for the Business checking account, you decide upon a balance decline threshold of $20,000. In that case, every time a business DDA current balance falls by $20,000 or more compared to the prior night’s balance, the Business Banker will receive an email alert. Then, the Banker can touch base with the business client to review the account, offer his assistance, provide cash flow expertise, and ensure the business owner that he is in the appropriate account. As a result, the Banker will not only build a stronger bond with the client, but also more than likely intercept and thwart any secret bank switches. Thus, retaining the client fortifies the Banker’s book of business and the Bank’s overall balance sheet.
While the prior workflow example focused on a large dollar decline, it is also extremely valuable for a Banker to be aware of and respond to a large dollar increase in a deposit account balance. You never know if a drastic pop in the balance of a checking or savings account is temporary, such as for the down payment on a new house, or if it is permanent. In many cases, the client can benefit from their money achieving a higher rate of return than they currently get in their main checking or savings account. Why miss out on an opportunity to help your clientele get their new influx of cash to work harder for them? You don’t want to let the financial institution down the street get to them first and entice them to move their accounts. With CRM, an automatic email alert notification can be sent to the Account Officer if the deposit account balance increases by a certain amount compared to the prior night’s balance. That way, the Banker can reach out to the customer before the competition gets a hold of them and preserve the relationship. Doing so and acting as a trusted advisor can also help you earn even more business and become their primary Bank, if you are not already.
In reality, I am only scratching the surface on how effective CRM workflows are at streamlining and automating key business process scenarios unique to Retail Banking. Having worked with leading and growing financial services companies for the past decade, Customer Effective has a wealth of experience to draw on and a wide array of best practices to apply to your CRM initiative. Please visit http://www.customereffective.com/solutions/customereffective-finserv?ref=learn to learn more about our niche financial services consulting practice and contact firstname.lastname@example.org if you are interested in taking your Bank marketing, sales, and service performance to the next level with the help of Microsoft Dynamics CRM.
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