CRM in intermediated financial services markets: ROLE OF THE CUSTOMER DATABASE

The customer database has a central role to play in the development of CRM. The processes identified below indicate the main activities that contribute to understanding the customer and profiting from this understanding.

—    Data management refers to the process of capturing, cleaning and updating the customer data. Within the insurer this includes bringing together data from the various transactional systems and from partner systems. The insurer also overlays geodemographic data to enhance the database with information not captured by the internal systems.

—    Understanding the customer. Statistical analysis of the database allows the insurer to profile customers exhibiting particular behaviours, to identify distinct segments and to differentiate customers based on their relative value.

—    Market intelligence helps the Insurer to understand external factors affecting customer, eg political and economic factors, social trends, unemployment, wealth, National Health Service, social exclusion.

—    Customer communication. The database can be used to determine whom to contact (prospect, customer or defector); how to contact them (telephone, mail or e-mail); what to say and when to say it. It can then be used to track the communication and later to analyse its effect.

—    Sales management. The database can provide ‘triggers’ for up-sell, cross-sell and ‘save the sale’ activities for telephone or mail action in support of customer acquisition, development and retention.

—     Customer service. The database can also be used to track which services customers have experienced — claims servicing, complaint handling, loyalty programmes, satisfaction surveys etc — and the impact these have had on the relationship. If ‘cost to serve’ data is available, the database can be used to track the costs of providing these services at an individual customer level.

—     Management information. The database provides information for the supplier and partners. In addition to the financial and operational information from other systems, unique customer information can be generated from the customer database; it is typically the only repository where all customer information is available in one place. This is especially true where partner and insurance data are combined.

—     Campaign management. The database helps supplier and partners to determine which campaigns work best and then to build on them. For example, campaign A has the highest response and conversion rates but because it also has the highest attrition in terms of customer defections, it is less profitable than campaign B which generated a lower response from a higher quality population and has a lower subsequent defection rate. Such analysis can help to improve future campaign activity.

—     Product planning. The database allows identification of customers’ insurance needs and how best to serve them. Careful analysis can help identify customer segments that are not well served by the current product offerings.

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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