RECAPTURE YOUR COMPETITIVE EDGE WITH LATEST GENERATION … · To grow, they must increase their wallet share with existing customers and attract more new customers, all in an environment

RECAPTURE YOUR COMPETITIVE EDGE WITH LATEST GENERATION CRM Truly Integrated CRM Revives the Differentiating Community Bank Customer Experience

What are community banks to do? Under significant market pressure to boost profitability, they need growth. To grow, they must increase their wallet share with existing customers and attract more new customers, all in an environment of increasing competition and decreasing resources. That dilemma is old news by now, but the answer is anything but—in fact, it’s transformative.

R e c a p t u r e Y o u r C o m p e t i t i v e E d g e W i t h L a t e s t G e n e r a t i o n C R M

C S I W H I T E P A P E R

This white paper demonstrates how the latest generation customer relationship management (CRM) solutions instinctively pinpoint individual customer channel preferences and proactively anticipate individual customer product and service needs. They achieve this by comprehensively capturing and analyzing each customer relationship and its behavioral patterns in real time through the core processing platform, where everyone within the bank can see it and use it to create a truly exceptional customer experience.

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WITH INTEGRATED CRM

CONGRUENT APPROACH = AN EXCEPTIONAL CUSTOMER EXPERIENCE

WITHOUT INTEGRATED CRM

DISJOINTED APPROACH = A DISAPPOINTING CUSTOMER EXPERIENCE

That dilemma is old news by now, but the answer is anything but–in fact,

it’s transformative.



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PROFITABILITY IS THE CHALLENGE–ANDTHE OPPORTUNITY

Not surprisingly, when CSI surveyed bank leaders for its 2015 Banking Priorities Study, the majority of respondents cited higher profitability as their biggest challenge. Facing chronic cybercrime, rising regulatory burdens and increasing competitive pressure, they typically have less to work with now than they did in the past.

To that point, in its 2015 Banking Outlook, the Deloitte Center for Financial Services noted that bank revenue as a percentage of assets fell from 2 percent in 2006 to 1.2 percent in 2014. And though costs as a percentage of assets also decreased during that time from 1.5 percent to 0.81 percent, the spread between the two narrowed.i

But while profitability is considered the great challenge, in the CSI study, bank leaders also called it their greatest opportunity. The Deloitte study provides the clues for taking advantage of that opportunity:

On Balance Sheet Efficiency: “To retain deposits, banks should be ramping up their customer relationship programs, increasing cross-selling efforts...”i

On Growth and Competition: “Firms should attempt to build holistic customer solutions by harnessing the power of all their business lines: consumer, commercial, and investment banking.”i

On the Shifting Payments Industry: “Banks must look for new ways to be top of wallet and to differentiate the customer experience.”i

On the Use of Data and Analytics: “Seeking value creation through collaboration with the business lines and functional groups will increasingly become the hallmarks of success.”i

Banks can accomplish these tasks with one simple solution: a truly integrated CRM.

THE FAILURE OF PAST GENERATION CRM, THE STANDALONE

While CRM is the answer, it’s critical to realize that not all CRM solutions are created equal. Many of the early adaptations were disappointing to users. That’s because, up to now, the typical CRM marketed to banks has been the standalone, a product wholly unconnected to the data and work functions of a bank’s core processing platform. No matter how much functionality the standalone CRM touts, this disconnect invariably negates its effect.

Why then, is the salesperson being forced to rekey it (customer information) into the CRM system? (Integration) should be the number one requirement for any CRM system.

- Top 5 Ways to Improve CRM Use in Large Firms by Chad Van Derrick for it.toolbox.com

Early adopters found the standalone CRM expensive to implement, cumbersome to use and quite limited in its ability to differentiate the customer experience. This unfortunately reinforced the perception among many banks that CRMs are not worth the effort or investment.



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THE ROAD TO A FULLY DIFFERENTIATED CUSTOMER EXPERIENCE BEGINS HERE

To the contrary, with the right CRM solution, the implementation is practically effortless and the investment quickly pays for itself in the form of higher wallet share, increased loan growth, greater customer acquisition and growing deposits.

What’s the right CRM? The authors of the Deloitte study again provide the clue. “Agility, innovation, and collaboration will be important to capitalize on new opportunities for growth...”i

In other words, it will be the agile, innovative and collaborative bank that will make the most of that great opportunity identified by bank leaders. And the next generation CRM facilitates and engenders all three of those traits, helping banks actually achieve their top marketing objectives and ultimately reach their profitability goals.

Top Marketing Priorities of Banks:

Improve share of walletGrow loan volumeAcquire new customersGrow deposits

Source: Financial Brand/Aite Group Survey of 262 senior financial services marketing executives, Q4 2014.

INTEGRATING CRM DIRECTLY INTO THE CORE

The biggest innovation in next generation CRM is its complete and seamless integration into the bank’s core processing platform. The result is a comprehensive, 360-degree view of the customer or prospect, which is visible by everyone within the bank via the same system they use to do 90 percent of their daily work.

This integration vastly improves the CRM adoption rate among bank employees because it’s easy to use, eliminates duplication of effort, and, best of all, provides key insight into each customer’s needs before they are ever verbally conveyed to the bank.

Even more importantly, it vastly improves the overall customer experience. Blind spots are removed, allowing any employee within the bank to speak intelligently about the customer’s accounts, assist them with questions, refer them to the appropriate party or present them with a personalized offer—all in real time via the channel of their choice with the click of a button from the core.

This CRM Innovation Boosts Profitability

• Existing customer relationships, the easiest and biggest opportunity for growth, are naturally promoted because customer needs are proactively anticipated via their preferred channel.

• Lead generation is smoothly facilitated, ensuring the conversion of profitable prospects because employees can easily view, manage and hand off prospects and customers through one system.

• Familial, employment and advisory affiliations are automatically captured, creating new leads with profitability potential that also strengthen the sticking power of the original relationship.



CREATING AN AGILE AND MOBILE BANK

As one technology expert commented, “If I’m a salesperson, my life should revolve around CRM. Why then should that system require me to jump through hoops to access it?” Only a very agile and mobile CRM can meet the needs of the business development team, and ultimately, of the bank. Next generation CRM is readily accessible in all situations and intuitively designed so all employees can—and want—to use it immediately.

CRM Agility and Mobility Boost Profitability

• Its affordable, cloud-based platform allows any user to access it wherever they need it, i.e. a loan officer meeting with a prospect at their place of business, a branch manager following up with a customer while on the road, even a marketing associate creating a targeted direct mail offer while working from home. This improves work productivity and efficiency, as well as employee satisfaction, because they have the tools to be successful right at their fingertips.

• Its universal access also increases customer satisfaction. The integrated CRM’s real-time profile identifies high-impact offers and solutions to be presented at the very moment of customer interaction via the very channel the customer prefers and is most likely to respond to.

• Its agility also helps banks immediately identify and prioritize the most profitable products for the most profitable customers, yielding the greatest possible return.

FACILITATING SEAMLESS FRONT-LINE TO BACK-END COLLABORATION

For enterprisewide success, innovation and agility need collaboration. A truly integrated CRM not only allows, but also facilitates and streamlines, communication and coordination between all business lines, functional groups and banking channels.

CRM Collaboration Boosts Profitability

• It generates “smart” dialogue with customers and prospects. They never have to repeat their story because it’s visible and shareable by all within the core system, so they always feel valued.

• It breaks down barriers between business lines, which ensures no opportunities are lost because of a lack of communication.

• It increases work productivity, because no two employees are inadvertently working on the same task for a customer.

• It supports and protects the brand image by ensuring a consistent voice, no matter how or with whom the customer is interacting with the bank.

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Bank Commerce Has Transformed. The Community Bank Must, Too

Let’s face it, bank commerce has evolved dramatically. Not long ago, consumers valued either the “relationship” of a smaller bank or the “product and geographic range” of a larger bank. By contrast, today they want both, regardless of size.

In response to this shift, community banks have strategically expanded their range of products, services and channels to attract and retain more customers. But the larger banks have also been strategically improving their customer relationship experience, thereby materially cutting into the traditional competitive advantage of community banks.

Compounding this situation is the dangerous misconception among community banks that in order to grow and boost profitability, there is no remedy but to sacrifice the very thing that was their edge—the close, intimate customer relationship. In reality, any bank that can no longer provide that differentiated customer experience will have a difficult time growing its book of business and boosting profitability.

The answer is transformation. Community banks must transform, not into the image of the larger banks but back to their former glory as the one true place where customers always felt appreciated, understood and valued.

Integrated CRM facilitates that transformation because it enables every bank employee, no matter their job or department, to provide an exceptional customer experience during EVERY customer or prospect interaction, no matter the channel used.

Everything Congruously Revolves 360º Around the Customer Relationship

Specifics are captured by any business line or functional group into the Core/Integrated CRM

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MARKETING

OPERATIONSSALES

PRODUCTAREAS

MOBILEBANKING

ONLINEBANKING

CALLCENTER

BRANCHSTAFF

INTEGRATED CRM

COR

E PROCESSING PLATFO

RMCUSTOMER

INTEGRATED CRM

BACK ENDFRONT LINE

CHANNEL



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CSI CRM NOW AVAILABLE WITHIN THE NUPOINT® CORE PROCESSING PLATFORM

Banks using the NuPoint core platform now have the means to transform their customer experience through the power of this latest generation CRM. CSI CRM provides a customer relationship management solution that is wholly integrated into the NuPoint Core solution. Its cloud-based platform and intuitive functionality features the latest CRM innovation, agility and collaboration.

Through the 360-degree view and depth of CSI CRM, that “community” feel is delivered in each and every customer and prospect interaction, ensuring they always feel …

• APPRECIATED: because you know their preferences, anticipate their needs and routinely present them with personalized offers based on their transactional and behavioral patterns.

• UNDERSTOOD: because they can talk to anyone at any time within your bank, and that person knows the “whole story” of their relationship and can speak intelligently about it.

• VALUED: because you can successfully meet all their personal and business banking needs using one coordinated and congruent relationship through CSI CRM.

Do you want to transform your bank by recapturing its competitive advantage? For more information about how CSI CRM can improve your bank’s customer experience, contact us at [email protected].

ABOUT CSIPersonal, professional customer service is at

the core of everything we do. CSI’s Core Bank

Processing solutions create a high-performing

infrastructure you can bank on. For 50 years,

CSI has specialized in fully integrated, flexible

and secure core solutions that meet the diverse

demands of today’s financial institutions,

regardless of size or scale.

For more information about CSI, visit www.csiweb.com.

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1https://www2.deloitte.com/content/dam/Deloitte/sg/Documents/financial-services/sg-fsi-outlook-banking-noexp.pdf; Deloitte Center for Financial Services 2015 Bank Outlook; Boosting profitability amidst new challenges; by Val Srinivas and Richa Wadhawani.

2http://it.toolbox.com/blogs/insidecrm/top-5-ways-to-improve-crm-use-in-large-firms; IT Toolbox; Top 5 Ways to Improve CRM Use in Large Firms; by Chad Van Derrick; April 2, 2014.