Lenders bank on CRM

Banks that measured customer satisfaction before and after the implementation of Customer Relationship Management (CRM) indicated a moderate to significant increase, according to the study CRM in the Romanian Banking System, conducted by Ensight Management Consulting. So far, only 15 percent of the surveyed banks have implemented a loyalty system integrated with their CRM, while an additional 23 percent intend to do so in the near future. The study also indicates that while a few years ago talking about CRM in banking did not make much sense, nowadays the topic is on every lender’s agenda. The Romanian market has rapidly caught up with international trends in this area and CRM is no longer a stranger to banks active on the Romanian market.

According to the research, most CRM implementation initiatives began in 2009-2010, which suggests that the phenomenon has proven to be an attractive solution for banks, which have shifted from attracting new clients to retaining their existing ones, as a result of harsh conditions on the market. Most implementations last for 6-12 months, especially in the case of medium-sized banks and the implementation of several isolated modules, but the process could take four years for very large lenders. The study reveals that many banks have opted for internally developed solutions, mainly for cost reasons. So far, only 58 percent of the interviewees recognize the strategic relevance of CRM implementations. In addition, respondents perceive CRM implementations as opportunities to increase revenues, but often neglect the cost-efficiency opportunities that CRM systems might bring.

In terms of benefits, banks indicated better knowledge about the customer, cross-selling, better performance by the sales force, increasing conversion rates in sales, better targeted marketing campaigns and increasing service quality as the key benefits of CRM implementations.

The study was conducted through semi-structured, face-to-face interviews with top management representatives of 13 banks operating on the Romanian market. The interviews took place between April and July 2011. The aim of the research was to analyze the current situation and to identify possible future trends in the short and medium term.

Anda Sebesi