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What Is Relationship Management?
Relationship management:
A strategy where an organisation sustains a continuing level of engagement
with its stakeholders. This management can happen between a business and
its customers (business to consumer [B2C]) or between a business and other
businesses (business to business [B2B]).
It targets to generate a partnership between an organisation and its
stakeholders, as opposed to viewing the relationship as only transactional.
Relationship management comprises strategies to encourage client backing
for a business and its offerings, as well as to increase brand loyalty.
In banking context, it is used to connect and build relationships with
customers.
The goal is to develop a lasting relationship with customers through
numerous products and services.
With time, NBC Bank becomes customers go-to when they need a new
financial product – a savings account, a mortgage, or car loan, whereas NBC
Bank benefits from increased customer loyalty and revenue growth.](https://image.slidesharecdn.com/relationshipmanagementpresentationinbanking-250808122046-33eca333/85/Relationship-Management-Presentation-In-Banking-pptx-9-320.jpg)
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The Purpose of CRM
“The focus [of CRM] is on creating value for the customer and NBC
Bank over the longer term”.
When customers value the customer service that they receive from
NBC Bank, they are less likely to look to alternative Banks for their
needs.
CRM enables NBC Bank to gain ‘competitive advantage’ over
competitors that supply similar products and services.
-](https://image.slidesharecdn.com/relationshipmanagementpresentationinbanking-250808122046-33eca333/85/Relationship-Management-Presentation-In-Banking-pptx-18-320.jpg)
Relationship Management Presentation In Banking.pptx
- 1. For Retail & Corporate Banking Staff 2022 Relationship Management
- 2. “If you don’t use it, you lose it” 1
- 3. 2 Presentation Objectives To enhance individual knowledge on working with clients to aid them understand the financial products & services on offer and help them make the right decisions with their accounts To work with individuals and businesses, to help them to manage their wealth by providing investment advice, credit services, or other types of assistance To build and manage rapport with retail & corporate clients to ensure optimum customer acquisition, retention and income generation from sales of all appropriate Assets, Liability and Cash management products of the bank
- 4. 3 Business Expected Outcomes Develop skills in managing relationships with existing customers to ensure they are satisfied with their banking experience Provide advice to customers about financial planning, investments, and other products or services offered by the bank Generate revenue pools for the bank through Retail & Corporate sales, leading to fee based income & CASA and contribute to the growth of the bottom line Ensuring delivery of industry- leading customer service, premier on boarding experience and advisory service to new and existing Corporate Customers
- 5. 4 Introduction “A pessimist sees the difficulty in every opportunity, an optimist sees the opportunity in every difficulty” - Winston Churchill -
- 8. 6 Beyoncé What will you do? I want to leave my foot prints on the sands of time I made a difference I will leave my mark so that everyone will know I was here I did everything I wanted and it was more than I thought it would be I did my all, gave my best
- 9. 7 What Is Relationship Management? Relationship management: A strategy where an organisation sustains a continuing level of engagement with its stakeholders. This management can happen between a business and its customers (business to consumer [B2C]) or between a business and other businesses (business to business [B2B]). It targets to generate a partnership between an organisation and its stakeholders, as opposed to viewing the relationship as only transactional. Relationship management comprises strategies to encourage client backing for a business and its offerings, as well as to increase brand loyalty. In banking context, it is used to connect and build relationships with customers. The goal is to develop a lasting relationship with customers through numerous products and services. With time, NBC Bank becomes customers go-to when they need a new financial product – a savings account, a mortgage, or car loan, whereas NBC Bank benefits from increased customer loyalty and revenue growth.
- 10. 8 Why Embrace Relationship Management? To encourage the relationships, banks often reward customers who apply for multiple bank products. E.g., offer higher interest rates on savings accounts, money, market accounts, or CDs (relationship rates) or waive monthly service fees on some bank accounts (exemption from any minimum balance requirements). Banks vigorously evaluate a customer’s wants, needs, and goals, then cross- sells various products and services. -
- 11. 9 How Relationship ManagementWorks NBC Bank can offer customers with multiple accounts interest-rate discounts or waived fees Examples: If a customer currently has a deposit account, he/she can access special “relationship pricing” on mortgages, which consist of an interest-rate discount or a closing-cost credit. If a customer has a linked checking and savings account, he/she can earn a higher “relationship rate” on savings account balance. NBC Bank devotes substantial effort to predict customers’ wants and needs - the more customers view NBC Bank as a trustworthy bank that solves their problems, the more likely they turn in for more than one financial need. -
- 12. 10 How Relationship ManagementWorks Once they have multiple accounts with NBC Bank, they are more likely to think of NBC Bank first the next time they need an account, loan, or service. Banks give different kinds of “relationship” perks for existing customers – besides general perks like loan discounts or lower fees, high-net-worth and elite customers get perks like their own relationship manager to turn to 24/7 for tailored advice on numerous financial matters. NBC Bank can offer in-built apps and platforms that integrate all of a clients accounts making banking easier. -
- 14. 11 Relationship Management Case Scenario A customer opens a cheque account. A few months later, NBC informs him/her of a money-saving feature that allows rounding up purchases and deposits the extra cash in a savings account – he/she opens a savings account to take advantage of the feature. Later, he/she uses their investing platform to make instant transfers from their cheque account. Through relationship management, NBC will offer customers products & services to fit each stage of their life, e.g., a mortgage or auto loan. When NBC focuses on every individual client instead of focusing on delivering one product or service only, it practices relationship management with a target of building brand loyalty. -
- 15. 12 Relationship Management Benefits Clients gain lasting planning & support for their business – by regularly analyzing their assets, balance sheets, cash flow, receivables and payables, the RM can propose recommendations to optimize their finances Enhanced loan & finance opportunities – RM can aid clients to assemble a healthy loan application and vouch for them during the loan process, besides assisting them to identify means to leverage relationship-based pricing. Higher level of customer service – RM offers clients a single point of contact for NBC Bank, which saves time and streamlines their banking relationship. Acquire an expert advocate for their business – RM is familiar with clients’ financial situation, thus serve as their advocate when communicating their situation to NBC Bank’s management and underwriters. Obtain a source of new business contacts – clients looking for new business opportunities can trust their RM to back them up.
- 17. 13 Customer Relationship Management What is CRM? CRM “is a business strategy that aims to understand, anticipate and manage the needs of an organisation’s current and potential customers”. It is a “comprehensive approach which provides seamless integration of every area of business that touches the customer- namely marketing, sales, customer services and field support through the integration of people, process and technology”. CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers. “The expression Customer Relationship Management (CRM) is becoming standard terminology, replacing what is widely perceived
- 18. 14 The Purpose of CRM “The focus [of CRM] is on creating value for the customer and NBC Bank over the longer term”. When customers value the customer service that they receive from NBC Bank, they are less likely to look to alternative Banks for their needs. CRM enables NBC Bank to gain ‘competitive advantage’ over competitors that supply similar products and services. -
- 19. 15 Why is CRM important? “Today’s businesses compete with multi-product offerings created and delivered by networks, alliances and partnerships of many kinds. Both retaining customers and building relationships with other value-adding allies is critical to corporate performance”. “The adoption of C.R.M. is being fuelled by a recognition that long- term relationships with customers are one of the most important assets of an organisation”. -