CRM in Retail Banking: Why Empathy Is the New Currency

CRM Solutions, CRM software, Retail Banking, Banking CRM

2017 is well on its way to becoming the hottest year on record. And John was feeling the heat big time.

The hot weather demanded that cooling devices be kept on round the clock, gulping power like never before. The result? John was presented a whopping power bill at the end of the month. This bill, along with other family expenses, severely strained his cash flow.

Worried and distraught, John gazed longingly at his phone, wondering whom to call for assistance. But, fortune paid a visit to him at the right moment.

An email from his bank pinged his phone with the headline ‘Beat the summer heat with emergency bill assistance’.  John found out that his bank was offering a customized loan with easy repayment options. Amazed, he immediately signed up.

How did the bank engage with John at the right time? With the help of ‘empathetic banking’. 

Track and analyze customer moments
The bank was aware of John’s dilemma through its digital ecosystem, seamlessly integrated with CRM solutions. For example, it came to know of ‘higher than normal’ temperature with the help of weather widget, anomalies in spending by comparing past payments. This intelligence prompted a detailed analysis of John’s cash flow and scheduled payments. 

Customer journeys coupled with smart widgets in your retail banking CRM can be powerful indicators of customer needs and desires. This intelligence can be then be fed into business modelers that spew out relevant offers, take advantage of whitespace advertising and convert needs into sales. By reflecting on the insights derived by analyzing customer data, banks can develop a deeper level of empathetic attachment that converts into new sources of revenue. 

Connect via preferred channels

CRM Solutions, CRM software, Retail Banking, Banking CRM
Empathetic engagement, across touch points and channels, leads to longer and stronger customer relationships. And that means finding out the channels that customers wish to connect. Usually, it is email. This step is often overlooked, much to the detriment of banks. 

By connecting with customers over their chosen medium, you develop a digitally humanist relationship with an intrinsic understanding of banking customers. John’s Bank, with the help of CRM in banking, knew John’s preferred channel and converted him into an asset. 

Offer custom financial products
Rigidity does not suit the financial services industry. With digital competition snapping their market share, banks need to go out of their way to meet customer’s needs, wants and demands. Banks can now easily custom financial products as per customer needs, depending on emerging micro and macro trends. 

By being aware of climate changes (macro) and John’s financial conditions (micro), his bank was able to offer an emergency loan with easy repayment schemes and additional credit line depending on consistent repayment. This direct communication provided a hassle-free product and service delivery at the right time, thus eliminating transactional and channel bottlenecks. 

The ‘empathetic engagement’ of John’s bank enabled it to come as a savior to his money problems. Show your customers that they are never alone. The customers, in return, will show that neither are you.

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