Case Study: Developed a results-oriented Customer Relationship Management (CRM) system
Challenge: How does a bank learn more about their clients, including what they will buy next, how profitable they are, and how likely they are to leave?
Action:
- Built a world-class CRM, pulling data from over 40 legacy systems, then modeled plus appended additional psychographic and campaign data, resulting in over 300 data fields per household.
- Modeled next product to sell and likelihood of attrition, with frequent re-scoring and writing back to the database.
- Calculated profitability per product, delivery channel, etc. to get profitability per household, and then analyzed gap to potential profitability.
- Served clients based on potential profitability and work to realize gap.
- Pushed out information to client-facing employees.
Results: By 2000, achieved recognition as industry's best CRM system.
The 43 sales agents at the Baton Rouge, LA. call center bring an arsenal of information to the task of selling bank products over the telephone. Hibernia maintains a database with 230 pieces of information on each of the 630,000 households and 60,000 small businesses in its customer base, says, Robert J. Ellis, senior vice president and alternative sales manager.
The bank uses software modeling to determine which customers may be ripe for which Hibernia products, then uses automated, predictive dialers to get those customers on the phone.
"Financial products are sold, not bought," Ellis declares. And banks that wait for customers to contact them, he warns, may find themselves left with nothing but low margin, commodity business.