nefma.org2014 fall conference outrunning the competition crm/mcif moderator: michael bartoo, marquis...

nefma.org2014 Fall Conference

Outrunning the Competition

CRM/MCIF

Moderator: Michael Bartoo, MARQUIS

Panelists: Chris Braccia, D&H

Joann Marsili, Fidelity Deposit &

Discount Bank

John Zells, IBM Southeast Employees

Credit Union


What is CRM?

Customer-Relationship-Management/CRM

Customer Relationship Management

is a strategy focusing on sales and

service management in order to

anticipate and meet customer

needs while increasing the overall

profitability of those relationships

for the Financial institution.


What is CRM?

Customer-Relationship-Management/CRM continued:To achieve this the organization must

understand customer needs, develop

a CRM culture that is executed across

the entire organization and establish

a platform for consistently delivering

The proper message to the customer

at all touch points.


Defining CRMVision •Where do you want to go?

•What does it look like?

Strategy •Define your Institutions CRM Strategy•Who, What, Where, When, How

Plan •Define the necessary steps to execute•Establish goals & objectives

Culture •A consistent experience across the enterprise•How will you exceed client expectations

Evolve •Measured approach•Long term strategy

4 Confidential; © 2014 D+H


Summary RETAIN CULTIVATE MAINTAIN OPTIMIZE

Number of Households 2,230 15,062 5,161 23,606

% of Bank's Households* 4.84% 32.70% 11.21% 51.25%

% of All Deposits and Loans 29.58% 26.07% 37.27% 6.92%

Average Deposit Relationship $172,931 $14,544 $90,820 $2,657

Average Loan Relationship $178,140 $90,360 $236,456 $15,400

Average Household Profit $4,764 $447 $2,711 ($39)

# of Years with the Bank 7 5 6 8

Services per Household 4.274 2.619 2.293 2.711

Accounts per Household 6.401 3.432 3.026 3.447

% of Single Service Households (1- 2 Services) 18.92% 57.63% 66.05% 51.44%

% of Multi Service Households (3+ Services) 81.08% 42.37% 33.95% 48.55%

Median HH Age 67 50 56 41

Median Income $50,925 $83,700 $52,099 $57,217

Demographics

Household Value Segment Summary

5


Moving Forward - CRM

• 3 Steps to Conducting Interactions– Strategy– Technology/Systems– Organization/Culture

• Not bits and pieces• Not optional• Not happenstance

– “By design, not by default”» Walt Disney


Putting the Puzzle Together - CRM

• Develop & document strategy • Translate goals & objectives into

customer-centric action items• Develop benchmarks

– Sales– Referrals– Retention– Service standards– Profit contribution– NPS

• Measure – Refine – Repeat• Slow roll-out

– Manage scope– Build one success at a time


For Your Consideration• Review hiring process

– Retail Sales– Hospitality Services

• Partnering for change– Learning about retail beyond the Financial

Services Industry• Industry Recon

– Going undercover


MCIF vs. CRMUsing the Tools to Create Opportunities

• MCIF = Marketing• CRM = Sales Opportunities and

Relationship Building


Differentiate/Communicate Your Brand

Operational Efficiency Product Excellence Customer Intimacy 1 of 3 = success 2 of 3 = world class

Best Price Best Product Best Experience

Behavior Speed Efficiency Commoditization

Behavior Innovations Passion for quality Cont. improvement

Behavior Needs anticipation Personal solutions Passion for brand

Examples Southwest “Start

Traveling” Home Depot “You Can” Walmart “Always Low

Price” McDonald’s “Billions” National banks “Best

Rates”

Examples Maytag “Repair Man” Intel “Intel Inside” Volvo “For Life” Nike “Best Athletic

Wear” Fidelity “4,500 Funds”

Examples Apple “You’re more

powerful than you think” Ben & Jerry’s “Linked

Prosperity” BMW “Ultimate Driving” Dell “What can we build?” CU’s “Personal Service”


CRM THE TECHNOLOGY

Predictive Behavior Modeling Right message, time, person, channel Readership habits

Business Process/Channel Integration Micro-segmentation

Value Creation Custom window- “Wow Moment” Personalized, product, price, service

Real Time Capture Analysis distribution of information across all channels

“Mobile devices put a bank branch in everyone’s pocket.” James P. Gorman, Chairman Morgan Stanley


CRM THE CULTURE

CRM requires a fundamental redesign of the business model. Staffing profiles (ex. Zions Bank) Aptitude testing- sales, I.Q. Job descriptions- sales Sales training- member experience, welcome calls,

value creation (ex. AT & T) Accountability- performance based compensation Behavior reinforcement (+ -)/Meaningful


What Motivates The Consumer Purchase Decision?

15% - Creativity of the offer

25% - Content of the offer

60% - Right message, time, person, channel

Broadcast <1% Personalized eblast >2% Channel integration >3% Follow up call >7%

*Customer intelligence is the key to value creation. - Conference Board

nefma.org2014 fall conference outrunning the competition crm/mcif moderator: michael bartoo, marquis...

Documents

org2014 fall conference

org2014 fall conference

org2014 fall conference

time slide

undercover slide

brand slide

crm culture

culture crm