A Fresh Start To Customer-Centricity

by Jacob Jegher, July 6, 2005

Abstract

Montreal, Canada July 6, 2005

A Fresh Start To Customer- Centricity

Celent estimates that IT spending on customer relationship strategy by North American banks will reach US$1.9 billion in 2005. This figure will rise to US$2.2 billion in 2007 as banks pursue their journey to becoming customer-centric.

Over the years, North American business culture has proven time and again that the customer is king. Customers have become accustomed to owning, directing and controlling the relationships they forge with suppliers. Successful businesses in all industries, have grown to understand that their top priority is the customer. Failure to recognize this priority is a grave mistake that could lead to imminent demise.

The banking industry is no exception to this cardinal rule. In fact, given the competitive nature and complexity of the industry and its operations, prioritizing the customer must be a top concern. Building, enhancing and nurturing relationships is very much in the best interest of banks耀atisfied customers are loyal customers. Loyal customers drive future bank revenues and can be excellent sources of opportunity down the road.

In a new report, , Celent will take a look back at bank CRM initiatives and analyze what went wrong. The report will offer solutions for banks that will assist in overcoming challenges and avoiding pitfalls. In addition to charting a roadmap, Celent will explore the current state of sales, marketing and customer service initiatives at banks today. The report will also identify best practices and strategically analyze trends and growth areas for 2005 and beyond.

"By focusing on the epicenter of business processes, people and technology, banks will proudly travel down the path to building, nurturing, solidifying and growing customer relationships and interactions," says Jacob Jegher, senior analyst in Celent's banking group and author of the report. "This intersection represents the lifeblood and direction of a strategic, forward-thinking customer-centric bank."

This 26-page report contains 6 figures and 1 table.

A Table of Contents is available online.

of Celent's Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

 

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

 

Montreal, Canada July 6,  2005

 

Return to report Abstract

Executive Summary 3
Why CRM Still Matters 6
Avoiding Pitfalls: Lessons Learned 7
  Looking Back 7
  Overcoming Challenges and Avoiding Pitfalls 8
Current State of Customer Relationship Strategy 10
  A Change in Framework 10
Best Practices and Goals 13
  Organizational 13
  Technological and Analytical 16
  Business Strategy 17
The Road Ahead 19
  Ripe With Opportunity Yet Full of Potholes 19
  The Ideal State 20
  IT Spending on Customer Relationship Strategy 21
Conclusion 24
Objectivity & Methodology 25
 

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