Measures CRM inputs and outputs on customer, offer, and product dimensions. The CRM Effectiveness Benchmark applies a “product funnel” approach, moving from customer base, through offer generation and channel deployment, to resulting sales.

CRM is a tool that materially increases the efficiency of retail sales across the board. The CRM Effectiveness benchmark helps banks improve key aspects of CRM, such as contactability, contact intensity, offer type (pre-approved, real-time offering vs batch campaigns), and optimal channel mix for delivering communications.

Why it's important

Banks’ ability to maximize the revenue potential of existing customers depends on their ability to understand customer needs and transform this understanding into relevant offers delivered at appropriate times. The CRM effectiveness benchmark closely examines all stages of the wide cross-sales funnel, starting from customer base activity and contactability, through number and quality of offers generated, to channel deployment strategies and final sales outcomes:

CRM inputs:

  • How many customers should a bank target for CRM to maximize outcomes?
  • Is the quality of customer contact data in line with peers? What should be the target?

CRM mechanics:

  • What should the banks’ approach be to generating offers: how, how many, how often?
  • What is the optimal channel mix to deliver offers generated?
  • What is the contact intensity and channel capacity utilization achievable without negative consequences?

CRM outputs:

  • What impact do CRM sales have on total bank sales?
  • What is the offer-to-sale conversion ratio depending on the product offered, offer type, channel mix, and customer segment?

System and processes:

  • How productive are CRM FTEs?
  • What do effective CRM systems and management models look like?

What the CRM Effectiveness Benchmark provides

  • Compares performance against local, regional, and international peers
  • Identifies opportunities for strategic and tactical changes to cross-sales work and sets targets for improvement
  • Develops an action plan to seize the opportunities and initiate improvement programs, based on observed and proven best practices
  • Tracks progress of initiatives against internal targets and against competitors

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