The First Rule of CRM for Financial Services
Below is a MRR and PLR article in category Business -> subcategory Marketing.
The First Rule of CRM for Financial Services
Title:
The First Rule of CRM for Financial ServicesSummary:
To succeed in cross-selling, financial services must shift from a transactional approach to a focus on long-term relationships. This means moving away from merely pushing products to genuinely building connections with clients.Keywords:
marketing strategy, CRM, marketing implementation, marketing success, business marketing, marketing resources, marketing consulting, marketing education, strategic marketing---
Understanding the Consumer's Perspective
Financial illiteracy is a common issue, particularly among baby boomers. The landscape of financial services is cluttered with new players, brands, and products, creating brand confusion. With intense media coverage on retirement planning and increased advertising targeting this "confused generation," consumers are overwhelmed. The ambiguity surrounding the role of a "financial planner" exacerbates the confusion. At its worst, people may simply avoid dealing with their finances altogether.
In essence, marketing financial products has always been about relationships and education. You're in the business of educating clients about personal finance, even if it's not as glamorous as portrayed by advertisements featuring yachts or beachside mansions. Selling financial services requires more than flashy marketing; it demands tools that go beyond superficial information and brochures.
From the Financial Firm's Perspective
Financial firms have experienced extensive mergers and acquisitions. With evolving corporate identities, competition is fierce, sometimes even within the same company. Although CRM is gaining traction in the financial sector, it lags behind industries like retail and airlines in data integration, making it difficult to obtain a comprehensive view of customers.
Amidst this change, how can financial services execute a CRM strategy that effectively promotes cross-selling and up-selling? Here are key conditions for success:
- The sales team must have complete access to a customer's current and near-term needs.
- The team should clearly understand cross-selling and up-selling within the firm.
- Staff, partners, and suppliers must collaborate to deliver on promises.
- Leadership should agree on transforming culture, structures, systems, metrics, and behaviors to enhance cross-selling.
The Softer Side of CRM
Successfully meeting these conditions involves more than just technology and product knowledge. It requires nurturing relationships with customers, colleagues, and partners. To address cross-selling and up-selling challenges, consider the following:
- Build Trust: Financial planners and brokers may need to engage with prospects in fresh ways. For staff, building bridges within different departments is crucial.
- Develop Helpful Relationships: A strong network of relationships acts as the "oil" for CRM. The more helpful relationships you have, the more information is willingly shared. This could involve new prospecting strategies or establishing clear policies for real-time information sharing.
- Cultivate Social Currency: Trust is the foundation of social and economic relationships. Influence others to align with your business goals.
It's a Process
Building relationships is an iterative process. Trust grows incrementally, requiring consistent engagement and small steps forward. This applies to all interactions?"whether with customers, employees, or partners. Experts in technology, marketing, operations, and sales must also become skilled in relationship-building within today's CRM landscape.
A critical reminder for financial firms: Focus less on pushing product features and more on forging strong customer relationships. Relying on old strategies while expecting new outcomes is unrealistic.
By prioritizing these aspects, financial services can transform their CRM approach from product-centric to customer-centric, building long-lasting client relationships that foster cross-selling and up-selling successes.
Originally published by CRMGuru.com, a service from Front Line Solutions, ©1998-2001
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