It Pays to Model Before Calling
Telemarketing can be an important element in a financial services company’s CRM efforts
TELEMARKETING IS A great way for any financial services company to follow up on a marketing effort that’s based on customer relationship management criteria.
Part of this involves using a predictive model that assists in determining customers who would respond positively to a call from a bank representative. Calling customers provides an opportunity to introduce additional products and services, and to explain the product being marketed.
The predictive model reduces the number of calls a bank rep has to make and dramatically increases positive responses from those contacts.
An essential element of such a model is that it allow access to vital customer and transaction information, including measurement of loyalty to the bank based on household relationships.
A recent Sedona Corp. client using this strategy along with a finely focused calling list derived from its in-house database analysis achieved better than an 8% response rate. The client was able to sell several non-traditional banking services as well.
How the Model Works
Once targeted, customers are scored using the predictive model. Call sheets can then be generated and distributed electronically to the telemarketing relationship managers. Having put in the extra effort before making calls, a financial services firm should realize better response rates, enhanced profitability and greater customer satisfaction.
Telemarketing is just one element of CRM strategy that financial firms must use in the current business climate. Increased competition, more knowledgeable customers and increased use of the Internet are forcing banks and other financial organizations to identify new and better ways to find customers and attend to their needs.
The integration of customer data and transaction data allows banks to develop predictive models to market products to key customers, in turn driving stronger relationships. A
