CRM in Financial Services

Introduction

Bryan Foss and Merlin Stone

Part 1. Where are we now in CRM?

Chapter 1 The state of CRM in financial services in the UK: promise vs. reality

Ann Rodrigues (Hoggett Bowers) and Merlin Stone

Introduction; Objectives; The survey; Overview of results; What is CRM?; Why do CRM?; People and organization; Data; IT; Obstacles to success; Time-scales; Who do respondents feel do it well?; Financial benefits; The future

Chapter 2. Uncertain directions in Europe and South Africa

Paul Clutterbuck, Rohitha Perera and Merlin Stone

Introduction; The affluent and the mainstream; Looking inward: from mis-selling to brand power; Business, brand and product strategies: the ideal and the reality; Managing the waves of change

Chapter 3. Assessing the quality of customer management in financial services

Michael Starkey, Neil Woodcock and Merlin Stone

The assessment model; Assessment results; Conclusions from CMAT assignments; CMAT financial services research in the USA and Canada; How North American financial services companies compare with the global CMAT R database; How North American and European retail banks compare in customer management; Conclusions

Part 2. Where are we now in e-business?

Chapter 4. E-business impact on customer management in financial services: an overview

Alison Spottiswoode and Abdelouahed El Marouani

What is e-business?; E-business customer impact; Critical success factors; E-business states and transformations; The state of e-business in financial services; Banking; E-financial services landscape in the early 21st century; Emerging technologies; Challenges faced by organizations in the financial services sector; What should financial service companies focus on for a sustainable future e-enabled gain?; Conclusion

Chapter 5. Impact of e-business on financial services marketing and marketers

Alan Tapp, Clive Nancarrow, Merlin Stone, John Stubbs and Bryan Foss

Introduction and summary; The role of marketing; The shift of power to customers -- implications for marketers; The direct marketing analogy; New business models for old?; The IT/Marketing interface; The wireless Internet -- real-time marketing?; Measurement and control; Customer insight; Case study -- a bank; Knowledge management; The effect of e-media on marketing communications; Web sites; E-mail; Interactive TV; The impact of new technology on CRM; Appendix: Case studies

Chapter 6. 'E-business strategy' or just 'business strategy'

Barry Jerome

Introduction; Key issues; Approach; Vision and direction; Positioning; Value proposition; Capabilities required; Implementation plan; Conclusions

Chapter 7. Managing marketing in the e-world

Tess Moffett, Paul Crick, Merlin Stone and Barry Jerome

Introduction -- changing times, changing technologies; Issues -- changing emphasis; The broadening armoury; The marketer's dilemma; Outbound versus inbound marketing; Global expectations locally met; Loss of control; Performance measures pose a problem; Knowledge management; Management processes; The role of account managers in marketing to intermediaries; Conclusion

Chapter 8. The implications of e-commerce for strategy: UK case studies

Tim Hughes

Introduction; The case development approach; The significance of e-commerce in financial services; How different companies are approaching e-business; Key factors in developing effective strategies; An integrated or stand-alone approach?; Conclusions

Chapter 9. Branch and virtual CRM -- a Dutch case study: Rabobank

Gerard de Graaf

Introduction; Overview of retail banking in the Netherlands; Porter five forces analysis; The idea behind the Rabobank; The Virtual Rabobank initiatives; The Network Financial Institution; Comparison between Rabobank and NFI model; Rabobank and CRM; Requirements for success

Part 3. Sector situation

Chapter 10. The life and pensions industry: the UK situation compared with other countries

David Taylor, Clare Seah and Christopher Cannon

Introduction; Trends; The 1 per cent world; Alliance management; Depolarization; Rationalization; Effective IFA distribution; Direct; Alternative market access -- worksite marketing; channel of opportunity?; Integrated multi-channel distribution; Regulation; Know where you are; Strategic evaluation

Chapter 11. Trends in insurance CRM

Bryan Foss, Merlin Stone and Fola Komolafe

Customer value management analysis; What insurance customers want; Current marketing strategies; The way forward -- some strategies for success; Using these concepts to develop a successful insurance marketing strategy

Chapter 12. The evolution of CRM in banking

Merlin Stone, Richard Lowrie, Bryan Foss and Fola Komolafe

Changing industry structure; Customer value management; The view from customers

Chapter 13. CRM in investment banking and financial markets

Genevieve Findlay, Peter Mathias, Paris de L'Etraz and Merlin Stone

Introduction; The CRM challenge; What clients want from their banks; Core providers; Non-core providers; The technology trap; Seeing real return on CRM investment; Case study: Implementing and maintaining a global CRM strategy

Part 4. Understanding customers

Chapter 14. Making the most of your customer base

Merlin Stone and Tony Woods

The problem; The general situation of CRM in financial services; Cross-selling; The problem with generalized cross-selling; The mirage of cross-selling; Conclusion; Appendix: The algebra of cross-selling

Chapter 15. The meaning and measurement of customer retention

Edward Aspinall, Clive Nancarrow, Merlin Stone and Bryan Foss

The importance of customer retention; The meaning of customer retention in a database environment; The concept of loyalty; The research programme; Research findings; Conclusions

Chapter 16. Business-to-business segmentation in financial services

Bryan Foss and Merlin Stone

Introduction; Why are segmentation and targeting important in both B2C and B2B?; Which companies should be interested in B2B segmentation?; Requirements for success; Some ways in which e-commerce changes the financial services value-chain rules; The developing role of e-markets in B2B; Turning B2B segmentation and targeting into business cases and profit; Checklist for action

Part 5. Systems and data

Chapter 17. Strategic IT issues in financial services

John Carter and Bryan Foss

Introduction; Beyond 2; Beyond 21; The status of IT in financial services; Priorities for financial services IT

Chapter 18. Achieving RoI from e-business systems in FS

Bryan Foss, Colin P Devonport and Paul McDaid

The Networked Financial Institution (NFI) business solution components; Gaining a good return on investment from e-business project actions; E-business integration drives ROI; Accelerating ROI achievement in e-business projects; Pulling it all together on the screen -- the integrated portal; EBI -- e-business infrastructure; Critical success factors and conclusions; Case study: Inside Big Blue's CRM transformation

Chapter 19. Data management -- moving from CRM to e-business customer management

Berenice Winter and Michael Page

Introduction; Building better relationships; Data capture; Data systems; Data quality and maintenance; Data analysis; Data security; Conclusion

Part 6. Risk and compliance

Chapter 20. Managing customers in a world of risk

David La Bouchardière, Maureen Madden, Greg Scorziello and Merlin Stone

Introduction; Issues; Solutions; Present problems; Case study; Conclusion

Chapter 21. Customer service, complaints management and regulatory compliance

Joy Terentis, Fabian Sander, David Cox, Merlin Stone and Maureen Madden

Introduction; Impact of the FSA complaints requirements; Other financial services complaint standards and requirements; Customer Service and Complaints Management Survey; Centralization vs. decentralization of customer service; Channels of communication for inbound customer contacts; Customer service and complaints handling processes; Compliance and data protection; Customer service and complaints handling -- personnel issues; Customer services and complaints handling technology; Functionality provided by systems; Use of new media; Customer service -- improvement and strategic goals; Best-case scenario; Worst-case scenario; Recommendations; Overall conclusion

Chapter 22. Data protection

Genevieve Findlay, Merlin Stone, Matt Leonard, Martin Evans and Barry McEnroe

Introduction; Overview; Resolving the problems; Current trends in data protection; How do customers feel about this?; How to improve the quality of customer data management; Managing the customer experience; Managing customer data internally; Internal data audits should be undertaken at regular intervals; How to become compliant -- an example; Conclusions; Appendix: Expert opinion

Chapter 23. Money laundering

Kevin Lacroix

What is money laundering?; The customer proposition from the criminal's point of view; The impact of organized terrorism; The effect of money laundering; The 'chokepoints' in the money laundering process; Implications for financial services systems involving customers; Appendix; Role of national legal systems in combating money laundering: scope of the criminal offence of money laundering; Provisional measures and confiscation; Role of the financial system in combating money laundering; Customer identification and record-keeping rules; Increased diligence of financial institutions; Measures to cope with the problem of countries with no or insufficient anti-money-laundering measures; Other measures to avoid money laundering; Implementation and role of regulatory and other administrative authorities; Strengthening of international cooperation: administrative cooperation/exchange of general information; Exchange of information relating to suspicious transactions; Other forms of cooperation; Focus of improved mutual assistance on money laundering issues

Part 7. Channels and value chain issues

Chapter 24. Managing customers in retail bank branches

Merlin Stone, Chandra Kiran, Tamsin Brew and David Selby

Cycles of change; The requirements of the branch portal era; Branch strategy and business models; Initiatives for distribution re-engineering; Success stories; Conclusion

Chapter 25. The impact of e-commerce on UK financial services product-providers and their intermediary relationships

Philip Aitchison

Introduction; UK product-providers in evolution; The independent financial adviser marketplace; Our research; Recommendations and conclusions

Chapter 26. Deconstructing the value chain: property and casualty insurance servicing

Paul Greensmith, Peter Routledge, Stuart Degg, Cathy Pickering and Merlin Stone

Introduction; Will value chain deconstruction emerge?; Current forces driving the economic rationale; Application to insurance servicing; Structural profitability pressures and options for P&C carriers

Chapter 27. Direct insurance

Bryan Foss, Merlin Stone and Roy Sheridan

The direct insurance value chain; The nature of the insurance value chain; The advent of outsourcing and sharing data; Innovative techniques for obtaining customer feedback; Issues raised by the success of direct insurance; Conclusions from the direct insurance experience

Chapter 28. CRM partnership between banks and insurance in practice -- a case study

Vince Mason and Merlin Stone

Introduction; Company background; Role of the customer database; The insurer's database initiative; Improving customer profitability; Making use of the analysis; Case study of a specific bank partner portfolio; The core issue -- gaining cooperation; Conclusion

Chapter 29. Managing customers with direct mail

Merlin Stone, Brian Scheld and Bryan Foss

Introduction; Background; Improving the situation -- where should companies start?; Using mail stage by stage; Relationship policies; Recommendations

Part 8. Implementation

Chapter 30. Managing value in e-business

Emma Cullen, Merlin Stone, Martin Hattenbach and Ted Strader

The nasty questions; Current lack of strategic focus; Achieving sustainable benefits from IT investment; Developing the business case; Why develop a business case?Business case planning approach; The critical path for a business case; Some final thoughts; Conclusion; Appendix: A case study

Chapter 31. Implementing CRM

Merlin Stone, Bryan Foss, Neil Woodcock, Michael Starkey, John Mullaly, Liz Machtynger, Rich Harvey and Brian Scheld

Introduction; CRM programmes do fail!; Project sponsorship; Work planning; Communication; Encouraging change; The role of staff and customer research; The change implied by customer management; Measurement; People issues; Structuring the organization for customer management; Programme management and people; The CRM team and its management; Knowledge management; The five key elements of success revisited; Adapting the CMAT model for people management; Case study: Global CRM programmes in insurance; Summary of implementation essentials

Chapter 32. Motivating people to manage customers -- through their pay

David Port

Introduction; Increased competition and market segmentation; Case study 1: Global investment bank drives more business, more profitably; The need for efficient multi-channel distribution; Case study 2: Delivering integrated multi-channel distribution; Current compensation schemes are inadequate; Case study 3: Driving performance through the branch network; The enterprise incentive management approach; Case study 4: Influencing product mix within targeted market segments delivers value; Conclusion

Part 9. Making the most of your (most valuable?) customers

Chapter 33. Managing wealth? Are you? Really?

Kevin La Croix, Merlin Stone and Rohitha Perera

Chapter 34. Bridging the wealth management gap

Tamsin Brew, Rohitha Perera and Merlin Stone

Introduction; Definition; The market; The response of suppliers; The economics of wealth management; The wealth management gap; Looking more closely at customer needs; The family office; The 'wealth management loop'; Essential wealth management capabilities; Case study: A South African private bank; New competitors and potential threats to financial services organizations; Lifestyle managers; Product and account aggregators; The revised wealth management market map; The future of wealth management?; Conclusion

Chapter 35. Building the private banking customer experience

Rohitha Perera and Tamsin Brew

Introduction; The market -- attractive but demanding and expensive to serve

Challenges facing private banks; The hierarchy of customer experiences; Conclusion

Chapter 36. Managing wealth -- a new approach in the UK

Merlin Stone

Introduction; Who are the new 'mid-worth' customers?; What do mid-worth customers do with their money?; Risks and returns; The first wealth management principle -- looking into the future; The second wealth management principle -- understanding financial assets; Assessing risk; Demystification -- and why have we had to wait so long?; The conceptual basis of the CWM proposition; The roles of advisers and investment managers; Simplifying wealth management; Assessing the quality of CWM's approach to customer management; Overall conclusion

Part 10. Strategic implications

Chapter 37. Competitive advantage analysis

Kevin La Croix and Bryan Foss

Beating the others; How competitive advantage analysis works; Competitive advantage analysis -- the five-step method; Step 1: Differences are neither good or bad -- they are just differences; Step 2: From many differences a few advantages may be born; Step 3: Dominant, important and useful competitive advantages; Step 4: The characteristics of competitive advantage; Step 5: The competitive advantage horizon; Fixing the problems of the enterprise

Chapter 38. The customer service gap

Kevin La Croix

The weakness in the customer proposition; Service gaps start at the top -- Service Gap 1; Service gaps are closed by sensible standards -- Service Gap 2; Company resources must be obsessively focused on service standards -- Service Gap 3; Bragging about the right things -- Service Gap 4; The common element in customer service

Chapter 39. Competing for customers in an era of change

Vikram Lund

Introduction; Where do you stand today?; Where will you stand tomorrow?; Four 'centric' business models; The customer-centric model; Production-centric model; The market-centric model; The fulfilment-centric model; Are you ready?; Preparing for the future

Chapter 40. Managing change

Kevin La Croix, Merlin Stone and Fola Komolafe

Changes and trends; Are these trends permanent?; Access; The overall result; Managing change; The need for balance; Case study: Changes in the UK financial services industry -- life and pensions; Overall conclusion