Merlin gets under the
skin of CRM issues in financial services, drawing together strong examples of best
practice. Essential reading for companies who want to get it right, this book dispels the
CRM myth that one size fits all. If you think you know it all, read on, think again.
Ray Perry, Chief Executive. E Centre, and Director of Corporate Marketing, Chartered
Institute of Marketing
A must for anyone wanting
to ensure that their CRM investment realises their expectations by going back to basics
and making sure that the foundations are in place.
Tim Turner, Head of Strategy, Clydesdale Bank PLC and Yorkshire Bank PLC, part of the
National Australia Bank Group
A unique and stimulating
read. A breath of fresh air from Bryan and Merlin, bringing hands-on practical experience
and insight from themselves and industry professionals. They have seized the opportunity
to marry theory with the knowledge of what really works on the ground.
Karen Jones, Marketing Director, GMAC Residential Funding (a General Motors company)
CRM has been one of the
strongest areas of management focus in financial services companies throughout the world
over the last five years. While it is forecast that this will continue for the next five
years, many companies are struggling with their CRM programmes. They have rushed ahead
with the purchase of new CRM systems, but have not done the work to ensure that these
systems are deployed effectively.
CRM in Financial Services is
the first book devoted exclusively to showing how organizations in this sector can improve
their CRM and achieve their desired return on investment. It is based on extensive global
consulting and research carried out or commissioned by IBM and its business partners over
the last five years, and draws on the authors' extensive experience of working with
companies to successfully implement and manage their CRM programmes.
Packed with illuminating
international case studies and examples, the book begins with a detailed analysis of the
state of CRM and e-business in the financial services globally, and then goes on to
provide comprehensive and practical guidance on:
making the most of your
customer base;
systems and data management;
risk and compliance;
channels and value chain
issues;
implementation;
strategic implications.
If you are in the financial
services sector and responsible for any aspect of customer management - at whatever level
- this important book should be top of your business reading list.
CONTENTS
Foreword
About the authors
List of contributors
Acknowledgements
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 20; 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 Bouchardičre, 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
700 pages
