After years of technology investing in pursuit of effective product marketing and cross-selling, leading financial institutions are finally within sight of their goal. With more institutions becoming followers of One-to-One Marketing, and attempting to provide consistent service to their customers through a growing array of channels, the need to integrate database marketing, campaign management, and multi-channel distribution has become critical. This integration forms the basis of true Enterprise Customer Management, according to “Database Marketing Solutions Beyond 1999,” a new Meridien Research report.
Right now, only the leading institutions are closing in on this goal. The technology and operations infrastructures are in place at institutions such as USAA and Charles Schwab & Co. to permit integrated marketing campaigns, linked to customer life-style analysis, proactive customer treatment programs, and integration of marketing and service delivery across all customer touch points.
While less aggressive institutions also pursue database marketing, their implementations are not integrated and tend to lack channel impact. The four-stage evolution toward Enterprise Customer Management (ECM) is occurring unevenly across financial industry segments.
The report finds that commercial banks have a higher adoption rate of essential technologies, but are slower to reach ECM, in part because of the number and variety of products and delivery channels that must be integrated. A hurdle frequently faced by insurance companies is the need to deal with both direct and indirect sales channels. In the securities and investment segment, firms that follow an automated customer channel strategy, like Schwab, are further along than full service, broker-centric firms. The mono-line, category killer nature of most non-bank financial firms is both an advantage (fewer product areas to integrate) and a limitation (fewer cross-sell opportunities) in implementing ECM. These firms are among the most advanced in implementing ECM, generally for customer acquisition and retention.
The 34-page report explores the two key database marketing technologies that must be integrated to achieve Enterprise Customer Management: marketing analytics and campaign management execution. The products of 24 vendors with solutions in the financial services sector are analyzed, and case studies of Bank of America, Arbella Insurance, and Royal Bank of Scotland are presented.
Meridien Research of Newton, MA, provides analytical research services to users and providers of financial technology. Meridien Research targets three technology segments of strategic importance to financial services firms: Electronic Delivery, Risk Management and Customer Management. Each practice delivers quarterly reports and monthly briefs, detailing new issues and challenges in the area.
Meridien Research is located at 2020 Commonwealth Avenue, Newton, MA 02466, USA, and can be reached by telephone at 1.617.796.2800, via fax at 1.617.796.2850, or by visiting their Web site at [www.meridien-research.com].