Does Your CRM System Put Customers First? (Part III)

Last week, I wrote about my experience with a major appliance retailer and the way their archaic CRM system prevented any kind of meaningful communication with me or among team members.

Website designers often recommend making some sample purchases on a new e-commerce platform before releasing it to the public. This practice can help eliminate expensive errors or confusing pages. Experts recommend treating CRM software the same way, especially when end users aren't as technologically savvy as the designers who put together the system.

Smart companies review how CRM software improves or hampers the customer experience, making changes to keep the focus on service. For example, a senior leader at Royal Bank of Canada used a 2005 speaking appearance to talk about what her company learned from its CRM rollout. Looking to grow but prevented by government charter from merging, RBC sought ways to increase deposits through enhanced customer loyalty.

Like most banks, RBC used a CRM system that slotted customers into silos based on the kinds of accounts they maintained. It grew challenging to help customers move from one kind of account to another, because the software limited this kind of action. Instead of using CRM software simply to categorize customer preferences, RBC developed tools to analyze accounts for opportunities.

Realizing that shifting customers to less expensive accounts could net them long term loyalty, RBC reached out to its ideal customers and offered to help save them money. Over a five year time horizon, this painful short-term decision resulted in lower customer churn and more customers bringing requests for home and auto loans to the bank. By tying this learning back to their CRM software design, RBC's front-line staff could ask more insightful questions of customers. The counterintuitive step of placing customers into accounts that generated fewer fees has helped turn RBC into one of North America's most profitable financial institutions.