eCRM: Critical Strategies for Financial Institutions

eCRM is not just about implementing the right technology and software. eCRM is a matter of fundamental change, involving the re-engineering of processes throughout every financial institution. eCRM must be developed as an integrated strategy across all distribution channels. The Internet is providing an additional medium to gather information, analyse customer behaviour and develop relationships with customers who are both fulfilling and profitable. Financial institutions must embrace this web technology and maximise their customer retention capabilities. eCRM: Critical Strategies for Financial Institutions, a new management report, will provide you with the opportunity to assess how you to get the most from your customer relationships, develop lasting customer loyalty and maximise customer lifetime value.

eCRM: Critical Strategies for Financial Institutions<BR>Mark Moore<BR><BR>Table of Contents<BR><BR>eCRM is not just about implementing the right technology and software. eCRM is a matter of fundamental change, involving the re-engineering of processes throughout every financial institution. eCRM must be developed as an integrated strategy across all distribution channels. The Internet is providing an additional medium to gather information, analyse customer behaviour and develop relationships with customers who are both fulfilling and profitable. Financial institutions must embrace this web technology and maximise their customer retention capabilities.<BR><BR>eCRM: Critical Strategies for Financial Institutions, a new management report, will provide you with the opportunity to assess how you to get the most from your customer relationships, develop lasting customer loyalty and maximise customer lifetime value.<BR><BR>Mark Moore is a financial writer with a particular specialisation in e-business issues. He holds a BA (Hons) in Classical Civilisation and Philosophy from Goldsmith College, University of London. He writes on financial and business-related issues for a wide range of publications in Europe and the US. Mark is the author of several full-length strategic reports on e-business topics. He is being increasingly seen as a leading authority in this area whose work ensures readers are kept fully abreast of the very latest developments in the strategic business concepts that matter in the twenty-first century.<BR><BR>Table of Contents<BR><BR>eCRM<BR>Critical strategies for financial institutions<BR>Executive Summary 9<BR>Chapter 1 The nature of CRM 25<BR>Introduction 25<BR>Information Technology and CRM 25<BR>The nature of the customer 31<BR>Definitions of ‘the customer’ 35<BR>Consumer 35<BR>Business-to-business 35<BR>Channel distributor or franchisee 36<BR>Internal customer 36<BR>The challenge of knowing the customer 36<BR>Customer segments 37<BR>Lessons from the retail sector 38<BR>Why customers expect their financial institutions to know them 40<BR>Customer pressure in wholesale banking 41<BR>The widespread inadequate embracing of CRM 42<BR>New competitive initiatives 43<BR>Customer churn 43<BR>Customer retention 43<BR>Customers and their attitude towards using financial institutions 48<BR>Convenience 48<BR>Cost 49<BR>Desire for a ‘good deal’ 49<BR>Features 50<BR>Good advice 50<BR>Reputation of the financial institution 51<BR>Security 51<BR>Special needs 52<BR>Status 53<BR>Making the most of the service differentiator 55<BR>Failure to provide good customer service 57<BR>Financial resources 57<BR>Legacy systems hamper progress 57<BR>Apathy towards CRM among senior executives 58<BR>Unwillingness to change 58<BR>CRM strategies to gain competitve advantage 58<BR>Selling to the right customer 58<BR>Making the right offer 58<BR>Using the right channels 59<BR>Selling at the right time 59<BR>CRM and customer profitability 59<BR>Chapter 2 The Internet as a CRM delivery<BR>channel for the financial sector 63<BR>Introduction 63<BR>The advantages of the Internet for customers and organisations 63<BR>The drawbacks of the telephone as a CRM interaction medium 67<BR>The Internet – the ‘fourth channel’ for commercial activity 68<BR>The cost advantage issue 69<BR>The notion of the Internet as one of several channels 70<BR>The notion of the single view of the customer 74<BR>The single view of the customer and the Internet 78<BR>Chapter 3 The CRM Marketplace 79<BR>Introduction 79<BR>The CRM Market 80<BR>The scale of the CRM Market 80<BR>CRM applications 81<BR>CRM service providers 82<BR>The CRM mid market 82<BR>CRM and ASP 83<BR>CRM trends in Europe 84<BR>Personalisation and customer intimacy 84<BR>Self service and assisted service 84<BR>Holy grail integration 84<BR>CRM and ASP 84<BR>Outsourced CRM implementations 84<BR>Who’s who in CRM 85<BR>Who’s who in the global marketplace 85<BR>Who’s who in the European marketplace 86<BR>Europe’s top 10 performing CRM vendors 86<BR>ATG 88<BR>BroadVision 89<BR>Chordiant 90<BR>Nortel/Clarify 91<BR>Oracle Corporation 92<BR>PeopleSoft/Vantive 93<BR>PrimeResponse 94<BR>Remedy Corporation 95<BR>SAP 96<BR>Siebel Systems 97<BR>Siebel eOrganisation Mid Market, aka Siebel Workgroups 98<BR>Vignette Corporation 99<BR>Sources 100<BR>Chapter 4 State-of-the-art applications of<BR>CRM 101<BR>Introduction 101<BR>CRM analytics 102<BR>The Internet revolution 102<BR>Understanding customer behaviour 103<BR>Integration of customer information 105<BR>High-tech Customer Interaction Centres (CICs) 108<BR>Chapter 5 Strategies, opportunities and<BR>challenges for vendors 113<BR>Types of CRM vendor 113<BR>Systems integration 113<BR>Field staff support 114<BR>Call centre support 114<BR>CRM self-service 115<BR>Product vendors or consultants? 117<BR>Chapter 6 Vendors in action 119<BR>Case study: Teradata 119<BR>Moving into the CRM arena 121<BR>The legacy system challenge 122<BR>Multi-channel CRM 124<BR>What sort of technology, in broad terms? 124<BR>Ten stated reasons for organisations using a Teradata data warehouse 128<BR>Product maturity 128<BR>Customer references 129<BR>Quickest time to solution 129<BR>Lowest total cost of ownership 129<BR>Complete support infrastructure 129<BR>The goal of effortless scalability 129<BR>High user concurrency 130<BR>Complex and ad hoc query performance 130<BR>Fast, fail-safe data load utilities 131<BR>Seamless mainframe integration 131<BR>The Union Bank of Norway 131<BR>Bank Hapoalim 132<BR>Conclusion 135<BR>Case Study: BT 136<BR>BT’s approach to CRM 141<BR>The scale of CRM for BT 142<BR>Drivers 142<BR>Knowledge 143<BR>Targeting 143<BR>Contact 143<BR>Impact 144<BR>Systems architecture 144<BR>BT’s CRM and the future 145<BR>bt.com 145<BR>Other plans 146<BR>Case Study: Barclays and BT 147<BR>Business benefits 150<BR><BR><BR>List of Figures<BR><BR>Figure 1.1: Advantages of customer retention 45<BR>Figure 1.2: Drivers of poor customer service 57<BR>Figure 1.2: Four key CRM goals 59<BR>Figure 1.2: Return on investment versus customer focus 61<BR>Figure 2.3: Advantages of eBusiness to the consumer 64<BR>Figure 2.4: Advantages of eBusiness to the organisation 65<BR>Figure 3.5: eCRM applications 81<BR>Figure 3.6: Three year cost of ownership 87<BR>Figure 3.7: ATG: Three year cost of ownership 88<BR>Figure 3.8: BroadVision: Three year cost of ownership 89<BR>Figure 3.9: Chordiant: Three year cost of ownership 90<BR>Figure 3.10: Nortel/Clarify: Three year cost of ownership 91<BR>Figure 3.11: Oracle Corporation: Three year cost of ownership 92<BR>Figure 3.12: PeopleSoft/Vantive: Three year cost of ownership 93<BR>Figure 3.13: PrimeResponse: Three year cost of ownership 94<BR>Figure 3.14: Remedy Corporation: Three year cost of ownership 95<BR>Figure 3.15: SAP: Three year cost of ownership 96<BR>Figure 3.16: Siebel Systems: Three year cost of ownership 97<BR>Figure 3.17: Siebel Workgroups: Three year cost of ownership 98<BR>Figure 3.18: Vignette Corporation: Three year cost of ownership 99<BR>Figure 4.19: Essemtial CRM solutions 105<BR>Figure 4.20: Core CIC software functionality information requirements 111<BR>Figure 5.21: Different types of CRM vendor 114<BR>Figure 5.24: Key questions to be answered by CRM vendors 116<BR>Figure 6.22: CRM drivers in retail financial services 139<BR>Figure 6.23: Relationship strategies in retail banking 140<BR><BR>List of Tables<BR><BR>Table 3.1: The leading 20 CRM companies by global revenue, 2000 85<BR>Table 3.2: The leading 20 CRM companies by European revenue, 2000 86<BR>