CRM in intermediated financial services markets: CONCLUSION

CRM in intermediated financial services markets: CONCLUSION

CRM can be achieved successfully within an intermediated environment. In such an environment a partnership rather than a supplier/client approach will give most benefit. The more parties involved in the relationship with the customer, the more complex the challenge. But this is worth looking at because joint ventures, mergers and collaborations are becoming more common and customer demands are growing. If partnership is mismanaged, then conflict of interest can occur, as insurers may end up cannibalising their own base by targeting their own direct customers through a partner.

By employing CRM techniques as described in this paper, significant business benefits were achieved. Improvements in customer value were made following customer development activity (retention and cross-sales). By focusing acquisition strategies upon particular prospects (segments) within the bank customer base, the quality of new recruits improved.

The types of analysis described in this paper are only of value if they remain current. Customers can and do change over time. It is, therefore, important to recognise that the analysis must be repeated periodically in order to track the dynamics of the customer portfolio. Further, the results presented here are from a specific group of customers purchasing particular financial services products through a unique set of channels. Although the methodologies employed may be useful and interesting for those elsewhere, the general findings should not be adopted without thorough reassessment.

Much of the value in insurance companies today is in long-term savings, life insurance and pensions. Most of this value is intermediated. The question is whether these findings, derived from the general insurance market are equally applicable for life and pensions. The authors believe that similar patterns are likely to emerge, whereby customers with positive characteristics in terms of multiple purchases, length of tenure and claims experience would continue to demonstrate these qualities and should therefore be targeted, but at an appropriate life stage (ie not after they have committed all their value). The problem is likely to be a shortage of adviser intelligence material that can be used for modelling purposes.

 

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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