Customer Loyalty: You Can Win It Back
By: Lars Moller, ActionPointSM Product Manager for Pinnacle Financial Strategies
Question: Customer loyalty is getting harder and harder to win and keep, especially as new providers move into the financial services industry. I've considered buying customer relationship management software (CRM) to help me win back my customers and attract new ones. Are there other resources?
Answer: You've pointed out a growing trend in the financial services industry. Even companies like Wal-Mart want to become players in the market. While CRM can provide excellent customer information and data, even if you have the right people to use the software effectively, you still need to analyze the data and develop a strategy.
The most important thing you can do to keep your profitable customers and attract new ones is to know your market and your customers. What's happening economically in your local marketplace? Are there any trends affecting customer demographics in your areas? Do your customers need insurance, 401(k) services, financial advice or trust services? Are they in the market for a car loan or school loan? Understanding your customers' wants and anticipating their needs will allow you to provide them with those services, and they won't need to go elsewhere.
You need to take a comprehensive view of your customers and your market demographics. You also need to look at your financial institution's underlying strengths, weaknesses, trends and improvement opportunities. There are various companies whose services you can use to analyze your customers' needs and market trends. One example is Pinnacle Financial Strategies' ActionPointSM. We analyze the data to identify the most profitable customers and products. And we provide recommendations to help you differentiate your institution based on products and services customers really care about.
At Pinnacle, we take a "total solutions" approach, so we work with the institutions to develop a customized action plan. We also provide quarterly updates to track progress and identify additional strategies for sustainable growth.
A good data analysis and modeling consulting service, like Pinnacle's ActionPoint, can help you win back your customers, but if you already own a CRM program, don't throw it away. Use the information you compile and take it to the next level because in order to keep your customers and grow new ones, you must understand their needs and provide them with services they need and want.
Pinnacle Financial Strategies, headquartered in Houston, Texas, is the premier provider of products and services that strengthen customer loyalty, enhance performance and manage risk for companies in the financial services industry. Pinnacle's "total solution" approach ensures timely, cost effective products and services that deliver increased value and expand capabilities and improve profitability for its clients. For more information, visit www.pinnaclefinancialstrategies.com.
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