Wednesday, March 12, 2008

FYI: Article shows importance of CRM in Credit Unions

Recently ran across this gem in my news feeds: "Gearing Up for CRM 2.0 in Credit Unions". The article was written By Terence Roche.

Article Summary: Changes in how we access credit union services (atms, web services, drive throughs, cell phone banking) are impacting how CRM is integrated and deployed within the organization. Credit unions who are able to use CRM to sustain customer loyalty amidst all of the emerging changes are the ones who will succeed.

Excerpt from article:
"For years, credit unions have differentiated themselves from banks and other competitors by creating strong "trusted advisor" relationships and superior banking experiences for their members. But the rules of the game are changing quickly and in a big way.

This change all starts with the concept of customer relationship management. CRM is a strategy that has been pursued by credit unions ever since the term started being used in the early 1990s. Credit unions have also used the term member relationship management.

Over the years, there have been several different definitions of CRM, but they have always encompassed some common themes:

* CRM organizes processes and delivery of banking services to provide maximum member satisfaction.

* CRM should optimize revenue and profitability.

* CRM customizes strategies and delivery based on the needs and preferences of unique member segments.

* CRM must be planned and articulated at the enterprise level to achieve the desired return.

While these components have not really changed significantly in recent years, it has become apparent that the traditional strategies that worked so well in the past must be challenged and altered going forward. Three major things are forcing this evolution.

1. New channels are quickly changing the entire nature of relationship management. Until as recently as five years ago, members demonstrated a preference for accessing the CU via three main channels: the branch; the ATM, which was largely a transaction processing tool but not a sales or relationship management channel; and the telephone, in the form of an automated voice-response unit or a call center."

Continue on to CRM-Daily and read the rest of the story...

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