Top 10 Ways Banks Can Use CRM to Increase Customer Retention

Today, anyone with a smartphone or computer can compare rates, read reviews, and open accounts in a matter of minutes. To remain competitive, banks need to develop a customer-centric retention approach that incorporates data insights, personnel training, and added product value. In banking, a well-designed CRM can serve as the foundation for this transformation. With these 10 tips, banks can gain valuable insight into the benefits of CRM in banking and improve customer service and retention.

1. Gain a 360 Degree View
Banking CRMs provide a 360-degree view of customer data, including accounts, service inquiries and marketing segmentation. A well-designed system will provide an instantaneous, at-a-glance view of a customer, allowing employees to:

  • Provide faster service to customers
  • Make informed decisions
  • Understand how a customer prefers to communicate
  • View recent interactions the customer has had with the bank
Essentially, a CRM in banking provides a 360 degree view of the customer relationship to front-line employees, improving your services and thus improving customer retention.


2. Provide Top-Notch Service
There are multiple communication channels available to customers. Each point of contact provides an opportunity to address questions, complaints, or compliments. Ensuring all customer-facing personnel have access to the banking CRM allows them to quickly capture their customer interactions, record follow-ups and provide fast resolution.

Since customers have embraced social media as a platform to leave reviews or vent frustrations, marketing departments have been looking for ways to identify and respond to customer sentiments. Utilizing CRM as a tool to quickly identify and respond to customer posts will make a tangible impact on retention. In fact, a recent Twitter study reported that customers who receive a response on Twitter are 30% more likely to recommend the brand and respond a full point higher on customer satisfaction surveys.


3. Offer Self-Service Options
Innovative banks are giving their customers more opportunities to access knowledgebase articles, submit questions/issues online or interact with a customer service representative or chatbots. Through the use of a self-service portal, customers are able to access self-help resources, view data stored in CRM (their service inquiries, contact information, and account summaries), and communicate with their bank. As an added benefit, portals reduce the amount of time personnel need to spend supporting customers, since many simple banking activities can be performed on them.


4. Promote Rewards
Customer-facing banking for CRM users should have visibility into customer rewards balances, whether it be available cash back, travel miles, or statement credits. Consider adding a validation and reminder of rewards balances into customer interaction scripts and coaching. Customers that leverage rewards programs gain additional value in their relationship with their bank and are less likely to leave for a competitor.


5. Identify the Next Best Product
Leveraging the power of a CRM database, banks can make highly-educated product recommendations to customers. For example, Hitachi Solutions for Banking includes powerful tools to help bankers understand the most relevant product to offer a customer based on their demographics, current product mix, and life circumstances. Every bank should establish a formula for identifying the next best products for their customers. Storing the next best product for each customer in your CRM for banking will give employees a great source of referrals. Additionally, providing this tailored experience will result in a deeper relationship between a bank and its customers.


A comprehensive banking solution CRM will include logic that recommends the next best product, given a customer’s current product mix.


6. Cross-Sell/Upsell
Whereas the next best product concept uses an algorithm to determine a customer’s most relevant next product need, a well-designed bank CRM system will offer recommendations of complimentary products to customers, based on product relationships configured by a CRM administrator. This provides personnel with additional opportunities to interact with customers and grow their product mix – I see your CD is expiring next month…are you aware of our recent CD rate increases?


7. Execute Tailored Marketing Campaigns
Through integration with an automated platform, such as ClickDimensions, marketing departments can create highly customized e-mail campaigns to increase customer awareness, reinforce brand integrity, and inform customers of products and promotions straight from your CRM for banking. With the ability to segment, score, and analyze customer data, you can offer targeted communications regarding:

  • Rate changes
  • New products
  • Products targeted towards specific life events
  • Rewards redemptions

Communicating targeted information, based on a customer’s life situation and current financial needs, increases the likelihood of engagement.


8. Take Action Through Predictive Analytics
Over the past few years banks have been busy building rich CRM databases that enable them to better understand their customers. The next evolution of business intelligence involves deep analysis of existing data to identify trends, predict customer behavior, and proactively take action. For example, a predictive analytics engine can assess years of customer turnover data to help identify customers on the verge of leaving for a competitor well before it happens. Customers displaying behaviors that typically result in the end of a banking relationship can be flagged in CRM, providing valuable time to reach out and retain.

CRM in Banking for Customer Retention


9. Collaborate with Colleagues
Whether by phone or in person, customers will often need to interact with multiple employees regarding a product or issue. Modern bank CRM systems include powerful collaboration functionality that empowers banking teams to seamlessly collaborate on customer issues, sales opportunities and referrals, improving overall customer service. Some examples of providing a smooth transition for customers include:

  • A customer service representative takes a call regarding an incorrect balance shown on the customer’s most recent statement. The representative, unable to make the necessary changes due to security, captures the statements made by the customer in CRM, attaches the latest bank statement to the customer’s case, and assigns it to her supervisor. Upon receiving the transferred call, the supervisor is immediately able to see all comments made by the customer to the customer service representative and is able to quickly resolve the issue.
  • A mortgage loan officer is processing an application when she notices the bank CRM’s recommendation for next best product – a college savings account (due to the arrival of a new baby). The customer realizes they haven’t even thought that far ahead and asks to learn more about available plan options. The mortgage loan officer creates an appointment for a colleague in CRM to call the customer and share more information.
  • A teller learns about a customer’s upcoming retirement and their desire to review their current financial plan. The teller enters a referral into CRM, which is then automatically assigned to a personal banker for follow-up within 24 hours.


10. Understand the Voice of the Customer
When it comes to retention, listening to and acting on customer feedback goes a long way. CRM for banking systems can include survey functionality, offering institutions a way to design surveys, distribute them to a targeted audience, and track responses directly within the application – all tied back to the customer record. Surveys should be conducted regularly to maintain an understanding of the customer-base. The following list includes statements and questions that capture a variety of customer insights:

  • Please rate the quality of your recent interaction with our customer service representative.
  • How well do the benefits of our Student Checking Account meet your needs?
  • On a scale of 1 to 5, how likely are you to recommend our bank to a friend or family member?
  • What can we do to improve the usefulness of our online tools (website, knowledge base)?
  • Please rate the quality of the e-mail communications you receive from our bank.


CRM for banking provides financial institutions with a wealth of tools to understand who their customers are and what they are looking for in a bank. A well-designed system can quickly tell a customer’s story to front-line representatives as well as back-office staff, leading to increased retention numbers and optimal growth.

From customer case management to customer surveys, Microsoft Dynamics includes powerful functionality for gaining a 360-degree view of customers. Contact Hitachi Solutions to determine how we can help your institution best leverage customer data to retain and grow your customer-base.


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