Despite their investments in technology, financial institutions are wasting opportunities in CRM by not using the information available to them to carry out cross selling. According to research firm Datamonitor, the main problem is the complexity of implementation of CRM applications.
Although the financial services sector sees CRM as an increasingly strategic investment, Datamonitor's new report, "European CRM in financial services survey", has found that institutions are failing to use their CRM capability to create sustainable competitive advantages. Most respondents said they do not see cross selling as a key use of customer data. Financial services institutions currently use CRM primarily as a tactical tool to identify high value customers and measure profitability.
Complex implementation remains the key barrier to CRM adoption. IT vendors have neglected insurers and brokerages in their application integration initiatives, failing to provide sector specific CRM offerings. This in turn has lead to a lack of 'off the shelf' solutions.
Financial service institutions must view CRM as a strategic initiative. Other approaches will inevitably lead to an over-emphasis on certain business functions or, as seen in the past, an exaggerated reliance on technology to alter the nature of customer relationships and interaction.