CRM in Banking: 5 Effective Ways to Drive and Boost Customer Retention


Customer’s infatuation with and availability of financial choices have threatened to add to traditional banking’s towering challenges pyre.

Customer retention and growth have become more critical to bankers as there is a shift towards customer centric business models.  They are constantly on the hunt for proven strategies to develop engagement activities to boost retention and increased lifetime value.



Here are five proven and effective ways to drive and boost customer retention through CRM for banks:

1. Acting on holistic 360 degree customer intelligence

banking CRM can provide a complete customer 360 profile overview in a single screen. Eliminating the need for multi window hopping, manual entries etc. The profile data can give actionable insights into a customer’s current preferences, buying patterns, previous transaction and interaction history etc.
This empowers bankers to deliver the most relevant product information through CRM in banking with personalized flavour on the preferred touchpoint or channel. Thus, boosting conversion rates.

2. Personalized offers & loyalty rewards
Customers are spoiled for choice today. It is important to have a delightful yet tailor made customer loyalty program to have happy customers which can be achieved through banking CRM. You have to match offers with needs. With the combination of big data, behavioral analytics and frequency scoring, your business can now offer cross sell modelers that meet empower your business to meet customer expectations.

3. Boosting relationship enhancing activities
Bankers need a catalyst to boost their customer engagements. Using the aid of AI driven contextual sales guidance, Performance modelers help sales professionals to not only plan strategies, but also smartly execute them to exceed their targets. CRM in banking involve increasing meetings, follow up calls, conducting webinars etc.
Old customers are cheaper and far more cost effective than new ones. They also deliver the maximum life cycle value. It is thus imperative to boost customer engagement activities.



4. Enabling customer self service

Customer self-service is a balancing act between both the interactions, may it be a personal touch through executive interaction or self-service resources. Customer expectations & their preferred channels of communication are rapidly changing with the emerging technologies.

Real time interactions are important for instant results. Chatbots assists customers to get spontaneous replies to their queries based on inbuilt algorithms using AI & analytics. Well deployed customer self-service through banking CRM helps in reducing the service cost which further results in revenue growth opportunities.
Finding the right combination of process, people & technologies enhance the cross channel customer experiences resulting in higher retention rate through CRM in banking technique.

5. Assessing performance through regular feedback
Feedback, either positive or negative, is important to improve the existing processes to be more effective. The best way out is to get it straight from your existing customers. CRM for banks help in reviewing the feedback on one single dashboard which further helps in focusing on the weaker segments in terms of service or product. CRM in banking software resolves customer issues at the priority through regular feedback mechanism restricts them to switch to any other competitor.

Customer retention, is therefore, a culmination of seamless digital customer journeys and adaptable strategies on a unified CRM platform CRM for banks helps in providing a well-equipped platform for understanding its customer’s life cycle from inception to product buying, omnichannel communication & related feedback resulting in effortless customer retention