Using CRM to maximise revenue potential from small businesses
by Brad Liebmann, Managing Director, Xbridge Ltd
Business Money, May 2004
| Obstacle to data-driven CRM | Force removing the barrier |
| Dominance of personal selling | Increasing customer comfort with direct channels such as telephone and Internet |
| Poor or unavailable customer information | Know Your Customer requirements Contact management tools Internet-based prospecting |
| Inability to coordinate channels and manage conflict | Infrastructure upgrades required for Basel II and FSA compliance Improved data management capabilities |
CRM uses customer data to initiate new customer contact. It is most effective when multiple channels are employed - the Internet, direct mail, telesales, and field sales-to improve effectiveness and efficiency. A company can make contact with prospective customers through a relatively low-cost channel; then follow up using higher cost product specialists. Alternatively, customers can browse a website for product information and describe their need. Software can then efficiently segment the customer; then direct the appropriate specialist to call follow up and sell the transaction. Measures of these interactions are constantly monitored so that processes can be continuously improved.
Relative to other industries, business finance is well suited to benefit from CRM marketing techniques:
Source: McKinsey & Company
Lenders who use this information-based approach can efficiently expand their small business lending franchises. CRM saves time and money by releasing expensive sales professionals from lower-value tasks - enabling them to focus on higher-value consultative selling. CRM enables lenders to align their sales and service channels with the requirements of each stage of the selling procedure, and with customer or prospect value and potential.
CRM technology can be an important enabler of an effective multi-channel approach. It requires clear objectives, high quality data, and a thorough review of sales procedures. Lenders that take this approach will enjoy improved results from a highly efficient, technology enabled, sales force.