Optimize Customer Relationships - Retail Banking

To succeed in this ever-changing, competitive landscape, banking organizations must optimize each and every customer relationship seeking increased levels of risk-adjusted profitability. Banks can accomplish this goal by focusing on three critical success factors:

Attracting and Retaining: “Right Customer” with “Right Behavior”

• To ensure allocated staff and capital is generating the best possible return, banks need to have a risk-adjusted view of profitability for individual customers and segments. This foundation is valuable to effectively price products and services to customers and segments for enhanced risk reward. Ongoing analysis of the customer is essential to ensure that the relationship remains profitable and that any behavior counter-productive to profitability is identified and managed.

Intelligent Sales Generation: “Right Product, Right Time, Right Place”

• It is unlikely in today’s banking landscape that a one-size-fits-all approach to selling products and services will be effective. Instead, having a complete multi-dimensional picture of customer relationships to understand their requirements, preferences, schedules, and expectations will help generate sales by introducing customers to products and services that suit them best. To become truly competitive however, banking organizations must also understand the different journeys their customers undertake and the “defining moments” that trigger changes in behavior and potentially their banking needs. Understanding at this level will help banking organizations become far timelier and more relevant in their sales engagements.

Optimizing Interactions: Less time with systems and more time with customers

• When servicing customers, employees often focus heavily on navigating systems to fulfill customer requests rather than engaging in a conversation that has the potential to generate sales and manage customer satisfaction.  Optimizing each customer interaction is essential and to do this every interaction, customer service and channel systems must be process-driven.  Systems must remove complexity, automate tasks and importantly, enable sales tools to be embedded directly into operational processes so as to proactively address “defining moments”. Optimized interactions can deliver productivity and efficiency improvements, customer and staff satisfaction, and improve profitability through share of wallet improvement and channel empowerment.