Today, customer relationship management (CRM) systems are table stakes for banks in their quest to improve financial performance, deepen customer relationships, and increase customer loyalty. Every major bank in the country has invested in a CRM system. A flawless sales and marketing strategy coupled with a top-notch CRM system can lead to financial returns of roughly $5-$8 for every dollar invested. Sounds impressive. But unfortunately, that is not the whole story.
CRM systems have an alarming failure rate. Research from industry analysts indicates that up to 70% of all CRM projects fail. And in an HBR piece, growth strategist Scott Edinger revealed that when he asked executives if their CRM system is helping their business to grow, the failure rate is closer to 90%. Therefore, that high ROI for CRM systems has a significant risk factor associated with it usually not considered in the initial purchase.
Is there a way to increase the value of CRM systems and reduce the risk of failure? Absolutely, by concurrently implementing a digital customer engagement system integrated with the CRM system. This combination is the NEW table stakes in banking.
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